Travel firms forecast 5% increase in holidays in 2026

Neil Lancefield

Package holiday bookings are expected to increase by 5% this year, the Civil Aviation Authority (CAA) has said.

The regulator, which administers the Atol travel financial protection scheme, forecast that 200,000 more holidaymakers will book trips in January compared with the 4.3 million who did so during the same month in 2025.

The first Saturday in January is often referred to as Sunshine Saturday by the travel industry as it is one of the busiest days of the year for holiday bookings.

Holiday companies expect a 5% increase in demand for trips in the year to the end of September compared with the previous 12 months.

Selina Chadha, group director for consumers and markets at the CAA, said: “With more people looking to book their holiday, it’s important to check your package holiday for Atol protection.

“Whether you’re searching for a summer or winter break, you’ll have peace of mind that you won’t lose money if your travel company collapses.”

All holidays sold in the UK as a package – typically flights and accommodation together – are legally required to be protected by Atol.

The scheme provides support for consumers when a tour operator goes out of business.

It arranges for people already overseas to be flown home, and reimburses financial losses suffered by those with future trips.

The package travel regulations also mean retailers are responsible for issues such as the standard of a hotel room not matching the description when booked.

Rory Boland, editor of magazine Which? Travel, urged consumers not to “feel pressured into booking in a hurry” this weekend despite it being “advertised as a prime time to grab a holiday bargain”.

He said: “Consider your options and shop around to make sure you’re getting the right holiday for you, at the right price.

“If you are flexible on destination, there are offers throughout the year.”

British Airways Holidays said the British overseas territory of Bermuda is its fastest growing destination for holiday searches online.

There was a 38% increase in searches for 2026 Bermuda trips between January 1 and November 9 2025, compared with the same period in 2024 for travel last year.

Other destinations also seeing strong growth include the Greek island of Crete (up 18%) and Central American nation Costa Rica (up 15%).