Travel agents and airlines bucked November’s post-Budget slowdown in essential consumer card spending, with travel-related expenditures climbing 6% over October, according to Barclays data.
Spending with travel agents rose by 7.3%, while airlines saw a 10.6% increase. Total transaction levels also surged, up 15.6% for agents and 4.8% for airlines. This trend occurred even as essential spending fell 3.1%—its steepest decline in over five years.
Barclays attributed the growth to rising consumer confidence in non-essential spending, which reached its highest point since February. The desire for winter getaways fueled a 5.5% boost in spending on hotels, resorts, and accommodations—up from 3.2% in October, marking the category’s strongest growth since October 2023.
Karen Johnson, Barclays’ head of retail, noted that consumers are making sacrifices elsewhere to afford “magical moments” like vacations.
Barclays’ UK chief economist Jack Meaning added that factors like eased consumer confidence and expectations of sustained high inflation and interest rates post-Budget influenced spending patterns. “The upcoming seasonal bounce from Black Friday and Christmas will be a key indicator of the economy’s trajectory as we head into 2025,” he said.
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