Package holiday demand dips as UK cost of living crisis hits budgets

Premium holidays and low-cost locations such as Turkey more resilient than three-star resorts, says travel firm On the Beach

Holiday bookings for three-star destinations are starting to drop as households hit by the cost of living crisis cut back amid surging bills, according to the travel company On the Beach.

The online travel retailer said that while premium bookings by customers with deeper pockets were proving resilient", holidaymakers who traditionally would book cheaper trips had been forced to rein in their spending.