Peaks drives travel to third-biggest leap in January spending growth
Ilaria Grasso MacolaStrong growth in turn-of-year spending on travel helped drive up non-essential purchasing in the UK by 2.6% in January, according to new consumer card data from Barclays.
The bank’s latest spending report, based on the period from 25 December 2023 to 19 January 2024, reveals spending on travel as a whole increased by 8.9% year-on-year last month, outpaced only by spending on digital content and subscriptions (11.4%) and "other services" (9.6%).
Spending with agents increased by 8% in January and with airlines by 9.3%, the new data showed. In December, spending on all travel increased by 14.1% year-on-year, while in November, it was up by 10.5% year-on-year.
The number of card transactions with agents and airlines also increased year-on-year in January – 10.8% with agents and 17.7% with airlines – suggesting many people turned out during the traditional peaks selling period to secure their getaways.
Agents headed into February buoyed by some of their best trading days ever. The Advantage Travel Partnership told TTG last month its members’ sales were tracking 10% ahead of last year, with revenue up by 21%.
Meanwhile, in the week beginning 8 January, Travel Counsellors achieved its biggest-ever booking day on what became the best-ever sales week in its 30-year history. Rival Not Just Travel also reported its biggest-ever month for sales in January, with revenue up 41% year-on-year bookings up 32%.
This turn-of-year growth in spending on travel, though, is modest compared with January 2023 when it increased by 66.1% as people’s ability and confidence to travel rebounded after two years of Covid.
Barclays head of retail Karen Johnson said there was room for optimism with Brits feeling more confident about their household finances and their ability to live within their means.
Chief economist Jack Meaning agreed, adding: “Increasing consumer confidence is a positive message for the UK outlook in 2024, as we see inflation continue to fall, real incomes rising and growing signs that interest rate cuts are coming.
“Spending looks to be on an upward trajectory, set to increase more than inflation in the coming months, which will be an important milestone for consumers and businesses who were squeezed throughout 2023.”
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Ilaria Grasso Macola
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