Travel bucks wider retail trends again in November, despite tough Budget

Transactions in agencies grew 15.6% year on year in November, the highest of all sectors examined by Barclays. Agencies also saw a 7.3% growth in spend, bucking the general retail trend.

It was a similar picture for airlines, which saw spend growth of 10.6% and transactions increase 4.8% since last year. 

Hotels, resorts and accommodation also grew by 5.5%, an increase from 3.2% in October 2024 and the category’s highest jump since October 2023. Barclays said that “winter blues seemingly prompted Brits to book getaways”.

The figures continue a general upward trajectory for travel despite a sometimes difficult economic picture this year. Consumer card spending as a whole contracted 0.5% year-on-year in November – the first decline since July.

Despite this, there was further good news for travel, as Barclays said consumers’ confidence in their ability to spend on non-essentials was at its highest since February. This was despite two-thirds saying they were looking for ways to reduce the cost of their weekly shop, with essential spending showing its biggest decline for five years, down 3.1%.

Additionally, more than a quarter said they expected Christmas to be more expensive than last year. 

Karen Johnson, Barclays’ head of retail, said despite the overall caution in the economy, “People are finding to find ways to enjoy life’s little luxuries, and the festive season is no exception, with consumers making cutbacks so they can afford magical moments.”

Barclays also said last month’s cold snap had kept consumers at home for some of the month, with overall retail performance down 2%.

Johnson added: “After a tentative recovery, retail’s performance was dampened in early November. However, many shoppers use the Black Friday sales period to get discounted gifts for loved ones and cross items off their wish lists, providing a boost for retailers.”