UK Faces Decline in Q2 2025 Domestic Tourism Volume and Value Amid Economic Pressures: Here Is the Latest Research

Published on December 10, 2025

In Q2 2025, England’s domestic tourism sector faced a decline in both volume and value, with a notable dip in overnight trips and a slight reduction in day visits. While the ongoing economic challenges, including the rising cost of living and weakened consumer confidence, contributed to this decline, the situation also revealed shifts in traveler behavior. These changes in tourism trends highlight a dynamic shift in how Britons are approaching their travel plans and spending in the face of financial pressures.

Overall Tourism Picture for Q2 2025

Domestic tourism in England showed a year-on-year decline in both volume and spending in Q2 2025. 18.5 million overnight trips were taken by British residents, which represents an 18% decrease compared to the same period in 2024. This marks a continued decline, with figures also below Q2 2023 and Q2 2022. Day visits saw a milder decrease of 1%, with 231 million day trips taken, though still below the volume recorded in Q2 2023. These trends reflect the growing impact of economic pressures on leisure activities, particularly those involving overnight stays, which require more significant financial commitment.

Total spend on domestic tourism fell by 8% in Q2 2025, amounting to £16.6 billion. This decrease was observed across both overnight trips, which saw a 12% decline to £5.7 billion, and day visits, which dropped by 6% to £11 billion. As disposable income becomes more constrained, British residents are reducing their spending on both short and extended trips, with fewer long-distance holidays and a tendency towards more localized, cost-effective travel.

Impact of Economic Pressures: Cost of Living and Consumer Confidence

The sharp decline in tourism volume and spend is largely attributed to economic pressures such as rising household costs, particularly in utilities (water, electricity, gas), council tax, and transport costs. As inflation continues to affect disposable income, British families are finding it harder to justify spending on holidays. In addition, consumer confidence remains low, with many individuals choosing to save rather than spend on travel.

However, some regions and types of trips have demonstrated resilience in the face of these challenges, suggesting that while the overall picture is one of decline, there are still areas that continue to attract visitors. Shorter trips and more budget-conscious travel options seem to be on the rise.

Trip Purpose and Changing Travel Preferences

The data reveals that the volume of trips declined across all types of travel, with the biggest drop in the category of “domestic stays as part of an overseas trip”. This type of travel had surged in the previous year, but it has now returned to lower levels.

Interestingly, there was a rise in the share of spending on package trips, increasing from 15% in Q2 2024 to 20% in Q2 2025. This shift reflects travelers’ desire for convenience and value in the face of rising travel costs. The increase in package trips could be attributed to people seeking bundled deals that offer better value for money, including transportation and accommodation at a lower price point.

In contrast, transport costs saw a slight reduction for both overnight and day trips, indicating that travelers are finding more affordable ways to travel, perhaps opting for trains or buses over higher-cost transport options.

Spend Per Trip: Higher Costs for Longer Stays

Despite the overall decline in tourism spending, there was an increase in spending per trip, especially for overnight stays. Spending per overnight trip rose by 7%, from £286 in Q2 2024 to £307 in Q2 2025. More significant increases were seen in holiday trips, where spending per trip grew by 11%, from £328 in Q2 2024 to £365 in Q2 2025. This suggests that while fewer people are traveling, those who do are willing to spend more on their experiences, often opting for premium offerings or longer stays to make their trips worthwhile.

Regional Trends: Resilience in Specific Areas

Certain regions of England experienced a rise in day visit spending, notably the East of England, North West, and East Midlands, which recorded year-on-year increases. On the other hand, for overnight trips, all regions saw a decline in trip volume. However, the West Midlands showed an increase in spending, despite fewer overnight trips, indicating that visitors to this region are spending more per trip.

Changes in Activities and Traveler Preferences

For day visits, the share of trips focused on visiting friends and relatives and sports or outdoor leisure activities saw a rise in Q2 2025. This reflects a growing trend of people opting for social visits and outdoor activities, which are often less costly than traditional tourism attractions. Conversely, visitor attractions saw a decline in their share of trips for both overnight and day visits, which could be a result of higher entry fees and reduced discretionary spending.

In terms of party composition, solo trips made up a larger portion of overnight trips, which may be due to people seeking more affordable and flexible travel options or simply preferring personal experiences.

Quick Tips for Travelers and Business Travelers

1. Plan Shorter Getaways: Consider taking shorter overnight trips to nearby destinations, which may offer lower costs while still providing a refreshing break.
2. Look for Package Deals: With the rise in package trip spending, look for bundled offers that can save you money on accommodation and transport.
3. Travel Off-Peak: Avoid peak holiday seasons to find more affordable accommodation and transport options.
4. Explore Outdoor Activities: As outdoor activities and visiting friends and family gain popularity, consider exploring parks, trails, and free or low-cost attractions.
5. Check for Regional Deals: Some regions, like the East of England and North West, saw an increase in day visit spending. Look for promotions or discounts in these areas.

Conclusion: Adapting to Economic Challenges

The decline in domestic tourism in Q2 2025 reflects the ongoing economic pressures faced by UK residents. However, despite these challenges, certain regions and types of trips continue to show resilience. As travelers adjust to tighter budgets, there is a noticeable shift toward shorter trips, more affordable travel options, and a preference for local or outdoor experiences. For the UK tourism industry, adapting to these changing preferences will be key in the coming months. As economic pressures persist, offering affordable, value-driven travel experiences will be crucial in keeping the tourism sector viable and thriving.

Disclaimer: The Attached Image in This Article is AI Generated