The price of everything going up, food fuel and ofcourse airline tickets, so will this mean fewer people will go on holliday this year?

Probably not entirely, reason being that to many people the summer holliday is a tradition, however bad their financial situation is, they'll always reserve some money for a holliday, or even take out a loan with bad credit just to take that holliday.

The likely effect will be that most people will change their habits; they'll opt for hollidaying closer to home or go to cheaper destinations, in countries such as Hungary or Czechs republic.
If most opt to holliday closer to home that will be a victory for the environment.