Travel reaping rewards of positive 'turning point for consumer confidence'
Harry KembleNon-essential spending hit its highest level since the spring last month with consumers continuing to defy cost of living pressures and divert spend towards travel, according to new monthly figures from Barclays.
Year-on-year spending with travel agents increased by 9.2% in November, down slightly from a 9.6% jump in October, while total travel agent transactions grew by 14.7% year-on-year, up by 2.4% compared with October 2023. It follows a 7.1% rise in spend with agents in October.
Spending with airlines, meanwhile, went up by 14% year-on-year in November, with total transactions rising by nearly a quarter (23.4%) compared with the same month last year.
Total spending on travel increased by 10.5% year-on-year in November, covering spend with travel agents and airlines, as well as on public transport and "other travel". Transactions grew by 10.7% year-on-year in November.
The new data from Barclays confirms the travel sector has now recorded double-digit growth in 11 of the past 12 months, with the bank’s polling suggesting a fifth of consumers (19%) are planning more holidays in 2024 "to make up for trips missed during lockdowns".
Spending on non-essential items grew by 2.7% in November, higher than in October (2%); Barclays put this down to a boost from the early start to Black Friday sales and late arrival of seasonally cold weather.
However, the extended sales period put a dampener on Black Friday itself, with Barclays data showing overall transaction volumes were down by 0.6% compared with the same day in 2022.
Transactions on Sunday 26 November outpaced Black Friday by 13.5%, demonstrating how Black Friday is “no longer a single-day event”, added Barclays.
Meanwhile, around 59% of the 2,000 customers polled by Barclays said they are actively seeking out deals and discounts more often due to rising costs.
Esme Harwood, Barclays director, said: “November also marked a turning point for consumer sentiment and confidence in personal finances improved, with Brits starting to feel less concerned about some of 2023’s defining issues, such as inflation, interest rates, and food prices.
“There are reasons to be cautiously optimistic as we look ahead to Christmas and the New Year.”
On travel specifically, Barclays said: "The travel sector again performed strongly in November, having recorded double-digit growth for 11 of the last 12 months, with sizeable uplifts at both travel agents (9.2%) and airlines (14%).
"This long run of growth has its roots in the pandemic, with a fifth (19%) of consumers planning more holidays in 2024, citing they’re still catching up on trips missed during lockdowns."
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