Holiday spending over the next three months is forecast to be “markedly lower” than last year.
Long-haul travel spend is expected to be down by seven percentage points and short-haul holidays by eight percentage points for those aged 35-54.
However, older consumers aged 55-plus are expecting to increase their spending on holidays over the next three months, with long-haul holiday spending up five percentage points from last year.
The figures come at part of the latest leisure consumer data by Deloitte which found that UK leisure spending remained largely resilient in the first quarter of 2017.
The quarterly survey of 3,000 UK adults found that holiday net spending also increased as consumers sought to overcome the ‘January blues’.
Long-haul holiday spending rose by four percentage points, while short-haul increased by five percentage points in the first three months over the year from the previous quarter.
But there are now signs that consumers may start to rein in their purchasing of other leisure activities.
Simon Oaten, Deloitte partner for hospitality and leisure, said: “Overall, consumers are continuing to prioritise holidays, which is why spending has increased for both long and short-haul trips.
“The long-term change in consumer behaviour, whereby consumers have favoured spending on experiences over goods, was a key reason for the leisure sector’s continued resilience throughout 2016.
“However, with inflation rising, a weak pound and a slowdown in nominal wage growth, leisure consumers are starting to feel their pockets tighten, leading to a fall in spending on some habitual activities and small luxuries, such as buying the daily coffee.
“Whilst this has yet to result in an actual reduction of overall leisure spending, this trend will be monitored closely. The overall health of the sector will be an important economic indicator in the months to come.”
He added: “Consumers with families, who may be feeling a squeeze on incomes, are showing signs of cutting back and have said that they are less likely to spend on holidays in Q2 2017.
“Older consumers are apparently less affected by the economic headwinds, and so are continuing to prioritise spending on holidays over the next three months.”