Is it cheaper to holiday in UK or abroad? The real cost of UK staycations vs overseas trips in 2026

When you’re planning a holiday in early 2026, the biggest question isn’t where to go-it’s whether to stay in the UK or fly abroad. On paper, a beach in Spain or a city break in Portugal seems like the obvious bargain. But when you add up every single cost-from flights and transfers to currency swings and hidden fees-the story changes. For many families and solo travelers, the UK isn’t just convenient. It’s cheaper. And here’s why.

The hidden costs of flying abroad

Let’s say you’re a family of four planning a week in Spain. You book a villa for £800. Flights? £600 total. Car hire? £250. Airport transfers? £120. That’s already £1,770 before you even buy a single meal or bottle of water.

Now add the extras: travel insurance that doesn’t cover flight delays (because your airline went bust last summer), airport parking that costs £70, and a £45 baggage fee because your suitcase weighs 23kg instead of 20kg. Then there’s the currency hit. The pound is still shaky against the euro. You thought you’d get 1.15 euros to the pound. You actually got 1.08. Suddenly, that £20 lunch costs you £21.30 in real terms.

And don’t forget the time. Two hours to get to the airport. Two hours for check-in and security. Another hour to get from the foreign airport to your hotel. That’s five hours just to start your holiday. Meanwhile, your UK staycation? You leave the house at 9 a.m. and are on the beach in Cornwall by noon.

What a UK staycation actually costs

Same family. Same week. This time, you rent a coastal cottage in Pembrokeshire for £750. No flights. No baggage fees. No currency exchange. Your car’s already in the driveway. You pack a picnic, drive three hours, and arrive with your own snacks, toys, and sunscreen.

You spend £150 on local groceries, £80 on a day trip to the Brecon Beacons, £40 on a pub dinner, and £60 on a local attraction like a seaside aquarium. Total? £1,080. That’s £690 less than the Spain trip-and you didn’t have to worry about a delayed flight, lost luggage, or a hotel that doesn’t match the photos.

And here’s the kicker: UK accommodation prices haven’t skyrocketed like they have abroad. While Airbnb prices in Lisbon jumped 34% since 2023, UK holiday lets only rose 8%-and many are still below 2019 levels. Cottage rentals in Devon, the Lake District, and North Wales are offering early bird discounts to fill winter slots. You can find a 3-bedroom place with a hot tub for under £100 a night if you book ahead.

Food, transport, and activities: the real comparison

Abroad, you’re paying for everything in a foreign currency. A pint of beer in a Spanish bar? £5. A coffee? £3. A simple pasta dish? £14. In the UK? A pint in a pub in York is £5.50. A coffee? £3.25. A pasta dish? £12. The difference isn’t huge-but it’s the little things that add up.

Transport is where the UK wins hard. Train tickets from London to Edinburgh cost £65 if you book early. A bus from Manchester to the Lake District? £15. You can hop on a train, take a ferry to the Isle of Wight, or drive to the Scottish Highlands without ever needing to rent a car. In Italy, you need a car to get anywhere outside the city. In France, parking in a village costs €15 a day. In the UK, most coastal towns have free parking for holidaymakers.

Activities? The UK has free beaches, wild hiking trails, historic castles you can walk through for £5, and museums that cost nothing. The National Trust and English Heritage offer family passes for under £50 that cover dozens of sites. In Portugal, you pay €12 just to enter a historic monastery. In Greece, you pay €20 to see a single ancient ruin. The UK gives you more for less-and often for free.

When abroad still makes sense

Let’s be fair: there are times when going abroad is worth it. If you want to ski in the Alps, dive in the Red Sea, or eat authentic pasta in Bologna, you’ll need to fly. But those aren’t the holidays most people are thinking about when they ask, “Is it cheaper?”

For the average family looking for sun, sand, and relaxation, the UK has caught up. New beachside hotels in Bournemouth and Tenby have added pools, kids’ clubs, and evening entertainment. Glamping sites in Scotland now offer heated yurts with hot tubs. You can find self-catering cabins with Wi-Fi, smart TVs, and washing machines-no more hauling dirty clothes home.

And let’s not forget safety. No language barriers. No pickpockets. No worrying if your child wandered off near a busy street. No strange tap water. No need to buy bottled water because you’re afraid to drink the tap. In the UK, you can relax without second-guessing everything.

Real people, real savings

Emma, a single mum from Birmingham, took her two kids to a holiday park in Norfolk last summer. She paid £420 for five nights, brought her own food, and used the park’s free kids’ activities. Total spend: £510. Last year, she went to Portugal. Flights, hotel, transfers, and food: £1,950. She saved £1,440-and didn’t miss the beach one bit.

Mark and Lisa, retired teachers from Leeds, used to fly to Spain every year. This year, they rented a cottage in the Lake District. They walked the fells, visited local markets, and ate at the same pub every night. Their total spend? £890. Last year’s Spain trip? £2,100. They’re not going back. “We got more peace, more quiet, and more value,” Lisa says. “And no one asked us for a tip.”

The 2026 rule: UK first, abroad second

Here’s the new math for 2026: if your holiday budget is under £1,500 for a family of four, the UK is almost always cheaper. Even if you’re flying to Scotland or Northern Ireland, you’re still saving on flights, transfers, and currency loss. If your budget is £2,000 or more, then abroad might make sense-but only if you’re chasing something the UK can’t offer.

What’s changed? The UK didn’t get more expensive. Abroad got a lot more expensive. Flights are pricier. Insurance is harder to get. Tourist taxes are everywhere. Even the cheapest destinations now charge a “resort fee” or “tourism levy.” Meanwhile, the UK quietly improved its own offerings without the drama.

So if you’re wondering whether to book a flight or a cottage, ask yourself this: Do you really need to leave the country to have a great holiday? Or are you just used to thinking that way?

The answer might surprise you. And so might your bank balance.