Spending growth throughout retail improved by a marginal 0.1% year-on-year in August according to Barclays – the first time it has grown since March.
Travel agents, though, are continuing to enjoy strong year-on-year growth in spend, which increased by 7.2% in August compared with August 2023 according to Barclays latest consumer spend report – the agency sector’s strongest month since February.
Airlines had an even stronger month, with spending growth up 8.3% year-on-year. Spend growth across travel as a whole increased by 6.8% in August.
However, there was a marked difference in transaction growth in August – while agents saw transactions grow by 11.7% year-on-year, this growth ran only to 1.6% for airlines. Across travel, transactions were up 5.9% in August.
Barclays put the boost down to late sales. "The travel sector (up 6.8%) had a particularly strong month, following news that several low-cost airlines have been offering last-minute holiday deals in order to tempt Brits abroad," said Barclays.
"Travel agents (up 7.2%) and airlines (up 8.3%) both had strong months, seeing their highest growth since February and March respectively."
The rebound in retail spending growth (+0.1%) still sees it lag behind other sectors like hospitality and leisure (+3.8%). The main growth area was in groceries (+1.9%), with household sales holding the sector back (-4.4%).
And while online spending growth increased by 1.8% in August, there was encouraging growth in face-to-face sales, which went up by 0.3%.
’Peace of mind’
Barclays’ findings dovetail with new data from Travel Counsellors, which surveyed 2,000 UK consumers on their travel and holiday spending plans for the next 12 months.
More than half of the 2,000 respondents (55%) told the homeworking firm they were planning to spend at least as much over the next 12 months on travel as they did in the past 12 months, while more than a quarter (29%) said they would spend more.
Similarly, 55% said holidays were a top spending priority this year – compared with 45% last year – with travel once again topping Travel Counsellors’ list of spending priorities, ahead of eating and drinking out (33%), home and garden renovations (31%) and leisure activities (29%).
According to the survey, there looks set to be an increase in multi-destination trips over the next year, with 17% of respondents citing them as their preferred holiday type – double the number that did last year.
Other holiday priorities travellers are prepared to spend more for include location and scenery (42%), fine dining or eating out (30%) and cultural trips and excursions (also 30%).
The poll found travellers were typically planning for two overseas holidays over the next 12 months, with 39% of respondents stating that booking through a travel professional was a priority for them "for the peace of mind that comes with having support if things go wrong".
Steve Byrne, Travel Counsellors chief executive, said holiday demand remained "exceptionally strong". "Our research underscores the importance attached to getting away, exploring the world, and enjoying meaningful travel experiences.
“The data also highlights the importance of having a travel advisor by your side and we have certainly seen this reflected in our own booking trends, with more customers than ever choosing a Travel Counsellor to create their unique trips, with bookings up 8% for this summer and already 34% higher for summer 2025."
