Consumer card spending on holidays increases in June

The new data showed travel agents (6.4%), airlines (2.8%) and hotels, resorts and accommodation (3.3%) all saw growth in June compared to May as holidaymakers booked getaways for the summer.

However, more of the nation (91%) are concerned about the negative impact of rising household bills on their personal finances. Consumers are also feeling less optimistic about their ability to live within their means (66% versus 71% in May).

Senior travel specialist for payment service provider BR-DGE Emily Whalley said the data shows the UK travel industry’s recovery is "gaining pace" as operators benefit from an "impressive surge" in demand for flights and holidays.

"More positively for the sector, it seems recent travel disruption at UK airports hasn’t been a drag on consumer demand," she added. "For the most part, travel operators are seizing the moment this summer.

"That said, the knock-on effect of disruption will see travel operators pay out millions of pounds in refunds which is an area many travel operators have failed to innovate in recent years."

She said it was "vital" travel sellers consider how they can deliver a smooth refund experience for customers to better their chances of repeat business.