A growing number of British parents are choosing to break the school calendar to secure cheaper holidays, new research from KPMG has revealed. The findings show that 33% of families with school-aged children say they will miss some school days to travel this year, while one in five (20%) say their entire holiday will take place during term time.
The practice continues despite fines for unauthorised absences having been increased for almost a year, to £80 (from £60) for a first offence and £160 for repeated absences within three years, according to the UK Department for Education.
Financial pressure and smart choices
The survey records that the decision of many families to choose a vacation during school holidays is directly related to the general increase in the cost of living. High prices for transportation, accommodation, and food are forcing citizens to look for more affordable solutions.
Four in ten (41%) of those who will not take a summer vacation this year say they cannot afford it, while 23% simply do not want to travel. Only 5% of respondents say they plan to spend more than last year on their vacation, while 20% say that the cost will remain at the same level.
Consumer confidence rises, but with a brake
KPMG’s quarterly survey, in which 3,000 British consumers participated, shows a positive change in the psychology of citizens. The proportion of those feeling financially secure has risen to 58%, while confidence in the UK economy has risen to 17%, from just 10% three months earlier.
This improvement appears to be affecting consumer behaviour, with seven in ten saying they will take a holiday this year. 34% are choosing domestic holidays, 21% will travel abroad, while 15% are planning holidays both in the UK and abroad.
Turning to savings
Despite the positive trend in consumer confidence, the increased cost of living is leading three in four holidaymakers to take steps to reduce the cost of their trip. Specifically:
20% will spend fewer nights on their holiday.
19% will choose self-catering accommodation.
17% will fly with low-cost airlines.
16% will opt for all-inclusive or half-board to control costs.
14% will stay in a lower-end hotel.
14% will share accommodation with friends or relatives.
KPMG’s head of consumer products, retail and leisure, Linda Ellett, said: “Demand for summer holidays remains strong, which is directly and indirectly benefiting the retail and leisure sectors. However, the fact that three in four households are looking to cut costs shows that punctuality is still a burden on British households.”
Mixed messages on the economy
Despite the optimism recorded, concerns about the course of the economy remain. 51% of consumers still believe that the economy is getting worse, although this has decreased from 58% in the previous quarter.
Key concerns include rising food prices (79%), utility bills (74%), and declining public services (42%).
In terms of consumer behaviour over the past quarter, people said they had reduced their food spending, while 23% preferred more products on sale and 22% used loyalty cards more often.
Ellett concluded: “Businesses are hoping that improving consumer sentiment will lead to increased spending in the summer months. However, uncertainty about the overall economic situation remains.”
