Middle East tensions derail UK holiday plans as cost and risk fears rise
More UK consumers are putting holiday plans on hold this year due to cost pressures, disruption and safety concerns linked to the Middle East conflict, RSM UK’s Consumer Outlook shows.
RSM’s survey of 2,000 consumers found that over a quarter (27%) of consumers are not planning to take a holiday in the next 12 months, up from 19% before the Iran war hit. The top three holidays that have been paused are self-organised trips overseas (down 8%), cruise holidays and adventure tour holidays (both down 6%).
In addition, one in three (31%) of consumers have changed travel plans as a direct result of the current conflict in the Middle East – whether it’s cancelling the holiday completely, rescheduling or changing the destination. This jumps to 55% for Gen Z, 46% for millennials and 43% for families.
Nearly 2 in 10 have taken the decision to change plans due to travel disruption and safety concerns (15%) and increased costs (15%) cited as the main reasons. A small percentage of holidaymakers (5%) have changed plans from an overseas holiday to a UK destination and this jumps to 8% for families.
Robyn Duffy, Consumer Markets Senior Analyst at RSM UK: "Rising tensions in the Middle East has forced some consumers to change or cancel travel plans this year. Initially thought to be a short-lived blip for international travel, the continued closure of the Strait of Hormuz has increased jet fuel prices amidst fears of scarcity, in turn pushing up airfares and squeezing demand for international travel.
“There is no doubt that consumer confidence has been rocked and that’s directly impacting travel plans for 2026. As a result, many consumers are opting for late bookings, deferring holidays altogether or opting for simpler, lower risk options closer to home.”
Chris Tate, Partner and Head of Hotels at RSM UK, said: “We have already seen a slowdown in London occupancy due to ongoing disruption hitting international travel plans and this trend could continue across the UK if tensions persist. Staycations are seeing a slight uptick in interest, particularly from families looking for certainty and value. However, with costs still elevated across the sector, any uplift in staycations is unlikely to fully offset the broader slowdown in travel confidence.”