Agency spend soared in May, Barclaycard reveals

The sector saw triple-digit growth in spend of 189.7% compared to May 2021, albeit when many more international restrictions were in place, with transactions up 48%. Spend in travel agencies was up 339%, with transactions increasing by 223% year-on-year.

Barclaycard said: “Encouragingly, the sector also grew month-on-month, with travel agents seeing a sizeable uplift of 24.2% and airlines growing 6.6%, as more holidaymakers booked their summer trips abroad.

“Hotels, resorts and accommodation also grew 1.2% month-on-month, suggesting a parallel rise in staycation booking in May.”

However, there are signs the trend could be about to end with cost-of-living pressures mounting.

Barclaycard said: “Rising energy prices meant average spending on utilities per customer surged 34.5% in May compared to the same period in 2021.

“In fact, almost nine in 10 (88%) say they are concerned about rising household and energy bills, while four in 10 (41%) are looking for ways to save energy and water at home.”

Barclaycard, which sees nearly half of the nation’s credit and debit card transactions, found spending on essential items grew 4.8%, largely propped up by inflation and a 24.8% surge in fuel spend as petrol and diesel prices continued to climb.

Jose Carvalho, Barclaycard’s head of consumer products, said: “The cost-of-living squeeze is clearly influencing discretionary spending habits, with figures showing a decline in subscriptions, and a drop in spending at restaurants, bars, pubs and clubs.

“Despite this, there are some encouraging signs, particularly in the travel industry, as Brits’ appetite for going abroad continues to grow as we approach the summer holidays.

“While consumer confidence continues to fall, we hope to see at least a short-term boost thanks to the Jubilee Weekend, and the recently announced £400 energy bill discount coming in October.”