Staycation nation: the funds and sectors set to benefit this summer

By James Yardley on 2 June 2026 in UK

If you’re still deciding where to spend your summer holiday, you’re not alone. While overseas travel remains popular, many people are thinking twice before booking a trip abroad. According to Barclays, spending on travel has fallen this year as some holidaymakers delay plans or swap overseas breaks for UK staycations, citing concerns about rising costs and potential disruption.

What may be disappointing news for airlines and travel operators could prove a welcome boost for many UK businesses. From hotels and holiday parks to pubs, supermarkets and entertainment venues, companies across the country stand to benefit from millions of Britons choosing to holiday closer to home.

For investors, this shift in spending creates opportunities beyond the obvious travel winners. Here, we explore some of the sectors, companies and funds that could benefit as holidaymakers hit the road and spend their money closer to home.

Getting there

Unless your holiday destination is within walking distance of your home, the chances are you’ll be heading out on the roads. Oil giants BP and Shell are likely to be among the beneficiaries. In addition to supplying fuel, they operate more than 2,000 forecourts between them, selling provisions and vehicle essentials. They are both holdings in the Liontrust Special Situations fund*, a best-ideas portfolio containing UK companies of any size. We believe this fund is one of the best options for investors wanting high-conviction, multi-cap exposure to the UK stock market.

Others may prefer to let the train take the strain. Trainline is a digital rail and coach technology platform that allows users to search, compare, and book trips with multiple carriers. It’s one of the largest holdings in the WS Amati UK Listed Smaller Companies fund*, an unconstrained collection of UK businesses growing faster than the economy. The portfolio of 65-70 companies focuses on structural growth businesses that are expected to add value in an under-researched area of the market. We believe very few of this fund’s rivals can match its level of resources or the outstanding long-term track record delivered by its managers.

Accommodation

Anyone staying in the UK will need to find accommodation. The good news is there are plenty of options with almost 10,000 hotel businesses – and many more actual properties. One such name is InterContinental Hotels Group, whose brands include Crowne Plaza and Holiday Inn, and which has hundreds of sites across the UK. It’s also one of the largest holdings in the Brunner Investment Trust*, an all-weather portfolio that aims to provide long-term growth in capital value and dividends. We believe this 40-60 stock portfolio is a strong proposition for any investor seeking a core holding in global equities.

There’s also the TR Property Investment Trust. Its lead manager, the experienced Marcus Phayre-Mudge, invests in the shares of property companies of all sizes. One of the trust’s largest holdings is in LondonMetric, a property company with a £7 billion portfolio*, some of which will benefit from the staycation boom. Its properties include theme parks such as Alton Towers and Thorpe Park, and more than 70 budget hotels, largely let to Travelodge. We don’t see any reason why Marcus and his team can’t continue to deliver good long-term returns for their shareholders.

Food and drinks

There are approximately 45,000 pubs in the UK, and these are likely to be favoured destinations for many hungry staycationers. Many also have some rooms available. Marston’s operates more than 1,300 pubs across England, Wales and Scotland, while Mitchells and Butlers is behind brands such as Toby Carvery, Harvester and Vintage Inns. Both companies are holdings in the JPMorgan UK Small Cap Growth & Income Trust*, which is managed by the experienced duo of Georgina Brittain and Katen Patel. We like the managers’ bottom-up, stock-picking approach, which is one of the reasons why it has produced extremely strong, long-term performance across numerous time periods.

But if you’ve booked a caravan or Airbnb location, then you’ll be heading to the shops on a regular basis to stock up on supplies. J Sainsbury is the country’s second-largest grocer with 600 supermarkets and more than 850 convenience stores. Wherever you end up, you’re unlikely to be too far away from a site! The supermarket giant is one of the largest holdings in the Schroder Recovery fund*, which is a quietly aggressive, value-driven fund run by a highly experienced team. We believe this fund offers an intriguing selection of stocks for investors wanting exposure outside the mainstream large-cap UK equities.

Diageo, another top holding in the Schroder fund*, has one of the most impressive drinks cabinets of brands, including Guinness, Johnnie Walker, Smirnoff and Baileys. While it has suffered from weak consumer confidence, the managers of the Murray Income Trust* still believe its shares offer long-term value, according to an AIC report. However, it’s not just about alcohol consumption**. It also holds Coca-Cola, which is usually a familiar sight during the summer months. We see the trust as a core UK offering that’s designed to deliver attractive total returns through a combination of income and capital growth.

Paying for it all

There are plenty of businesses that profit from people staying closer to home, including payment companies. The M&G North American Dividend fund, for example, holds Alphabet and Amazon*. These will be used by those searching for UK breaks and buying various items for the time away. This is a bottom-up, concentrated fund that sources companies in the region that can reliably grow their dividends.

Elsewhere, Morgan Stanley Global Brands holds a stake in Visa*, one of the world’s most popular payment providers. This fund operates as a boutique within Morgan Stanley and seeks high-quality companies with defensible, visible future earnings.

*Source: fund factsheet, 30 April 2026
**Source: AIC, 4 March 2026