I am hearing that scale back operations are already looked at in one if not two UK operations so it is happening. The number of recruitment advertisements should also help to prove that the favour is now to the benefit of the employee in general term and not the employer and so they (employer) will need to adapt to market forces to ensure their long term survival. Jet2 is a great example of an employer with excellent management who can adapt and realises the importance of looking after its staff and that this directly affects the business model with future viability/profitability. For this they are (IMO) to be commended I would say. I know Jet2 worries a lot of UK airlines because it has the opportunity to strip many companies of it's staff because of far superior employment opportunities and terms/conditions. Other airlines must now adapt to survive or become extinct.
For people and especially since the pandemic holidays will (IMO) remain and still be an annual feature and I think that people will sacrifice energy, bills and other such things to take these holidays and - recession? I think likely nowhere near as bad as the press would like to have the people think.