Rebound in travel spend vastly outstripping other sectors
Ilaria Grasso MacolaSpending on travel – particularly with travel agents – is continuing to rebound faster than all other areas of non-essential spend according to new data from Barclays, despite the ongoing cost of living squeeze.
Consumer card spend on travel grew by 24.3% year-on-year in March, the single biggest increase of any of the 13 main sectors tracked by Barclays.
This compares with a 6.6% fall in spend growth on household matters and 3.4% fall in spend growth on clothing. There were modest increases in spend on eating and drinking (5.6%) and entertainment (6.5%).
Spend on grocery shopping increased by 7.1%, but this is far below the Office for National Statistics’ rate of food price inflation, which is currently 18.2%, highlighting one area people appear to be economising.
The uptick for travel was even more pronounced in terms of spending specifically with travel agents, which is up by 30.1%, and with airlines, up by 28.5%.
It comes as further evidence that Brits are proving extremely reluctant to give up their holidays, despite the challenging economic environment.
Travel also enjoyed the second highest year-on-year rate of transaction growth in March, 10.5%, with only motoring transactions running ahead (11.4%).
There was one setback for the sector, though, with spending growth for hotels, resorts and accommodation, down 3.3% year-on-year in March.
The Barclays data backs up a recent Post Office survey, which revealed how travel remains one of people’s top priorities after food, energy and bills.
In late-March, Travel Republic boss Antonio Fellino said: "While cost of living continues to be a key factor in how much consumers are willing to spend, it’s clear Britons are reluctant to give up their holidays."
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