On most British high streets in the early 2000s, a travel agent’s window would beam back at you like a sunlamp—filled with laminated offers, 3-for-2 deals to Crete, and brochures stacked like holiday bricks. These agencies thrived on simplicity. One booking, one price, one tan. Yet today, many of those same windows are either darkened or replaced by sushi kiosks and phone repair shops. What’s unfolding isn’t dramatic—it’s quiet, methodical, and slightly nostalgic.
The decline of UK package holidays hasn’t come with a bang. Instead, it’s arrived like an off-season tide—steady and easy to overlook unless you’re watching closely. More travellers are choosing to assemble their own plans rather than rely on pre-packaged resort weeks. Fewer families are blocking out two full weeks for a destination they’ve never visited, chosen mostly because it was bundled with airport transfers.
Key Facts – The Quiet Decline of Package Holidays in the UK
| Category | Details |
|---|---|
| Primary Trend | Gradual decline in traditional package holidays in the UK |
| Main Factors | Shift to DIY travel, rising living costs, changing traveller preferences |
| Reported Impact | 21% drop in domestic overnight stays since 2022 |
| Market Response | Growth in tailored, short-stay, and niche travel products |
| Notable Example | Cornwall recorded its worst tourist season in over a decade |
| Emerging Behaviours | Rise in spontaneous breaks, “workations,” and quiet tourism |
| Reference Source |
That shift is partially financial. The cost-of-living crisis hasn’t just changed how people spend—it’s changed what they think is worth spending on. For many, the idea of jetting off for a £2,000 all-inclusive feels unjustifiable when heating bills have doubled and mortgage rates are tightening the air in the room. In this climate, holiday spending has been significantly reduced, especially among families who once depended on predictable travel deals during school breaks.
Yet price isn’t the only force at play. A more fundamental shift is happening in how people think about holidays. Travellers—especially younger ones—are prioritising flexibility, personalisation, and authenticity. Instead of defaulting to resorts with buffet wristbands and bingo nights, they’re booking Airbnb treehouses, glamping pods in Wales, or spontaneous two-night trips abroad thanks to low-cost carriers and easy digital bookings. AI tools and booking platforms have made DIY travel not only possible but highly efficient, encouraging even novice travellers to customise their escapes down to the hour.
For the UK tourism sector, particularly domestic providers, this evolution hasn’t been particularly forgiving. Since 2022, overnight domestic stays have dropped by more than 20%, with once-thriving hotspots like Cornwall suffering through their worst summer in a decade. High petrol prices, unreliable weather, and under-invested infrastructure are pushing many to skip domestic holidays altogether, or reduce them to fleeting weekends. Hospitality businesses—already operating on thin margins—are facing higher operational costs with fewer guests to cover them.
The concept of what a “holiday” looks like is notably improved. Rather than a single two-week break each summer, many are embracing a new rhythm of travel—more frequent, more agile, and often more local. The rise of “workations,” where people combine leisure with remote work, is particularly beneficial for rural areas previously overlooked in favour of sun-soaked beaches. It’s no longer just about the destination. It’s about the experience of being somewhere else, even briefly, while still feeling grounded in comfort or productivity.
I noticed this recently when a friend of mine, a freelance graphic designer, spent four days in a Northumberland cottage, sending files by day and walking clifftop trails by dusk. She paid less than a resort stay, avoided the stress of air travel, and returned with the kind of refreshed outlook you don’t often get from lying on a lounger with strangers for two weeks.
Many traditional operators are adapting. Jet2 and TUI have introduced shorter packages and dynamic booking tools that let travellers swap meals for massages, airport lounges for local bike tours. These hybrids aim to keep the simplicity of the package model while offering a layer of control that today’s travellers now expect. It’s a welcome evolution—one that feels particularly innovative considering how stagnant this corner of the industry once was.
A notable trend is the rise in “quiet” tourism. Destinations that offer peace, affordability, and a sense of local immersion are becoming particularly attractive. It’s not just about getting away—it’s about avoiding crowds, staying off the grid, and unplugging from the hyperactive pace of daily life. This movement has been remarkably effective in reviving small towns and lesser-known countryside spots that were previously overlooked by larger operators.
Meanwhile, luxury and niche travel haven’t declined—they’ve diversified. High-end travellers are still booking long-haul trips, but with sharper expectations for tailored service and unique experiences. Safari + remote work in Namibia? Done. Tuscan villas that double as art studios? Already booked. These journeys, while expensive, often feel surprisingly affordable to travellers who see them as once-in-a-year investments rather than routine indulgences.
Interestingly, even the language around travel is changing. Instead of “package holidays,” providers are leaning into phrases like “micro escapes,” “curated journeys,” or “personal retreats.” It’s not just branding—it’s a reflection of changing expectations. Travellers no longer want a pre-fitted itinerary. They want the freedom to construct their own rhythm, to edit on the fly, to change their mind.
The nostalgia for the package holiday will always linger. For many of us, those trips were the background to childhood summers—chalky piña coladas, noisy shuttles, the sound of flip-flops on hotel tiles. But those memories belong to a different era. Today’s holidaymakers are equipped differently: smartphones, open tabs, portable Wi-Fi, real-time recommendations from apps and influencers.
This doesn’t mean the old model is doomed. It means it’s being repurposed. The UK travel industry, while under pressure, is not standing still. Many are responding with creative rethinking, focusing on what is particularly sustainable, particularly meaningful, and surprisingly adaptable to modern lifestyles. From flexible breaks to tailored luxury, what’s emerging is less uniform—but arguably more resilient.
