Debit and credit card data reveal a 66% increase in spend across the sector as a whole compared with January 2022, when restrictions were in place due to the Omicron variant of Covid.
Barclays said payments in January to travel agents rose year-on-year by 83.1% and those to airlines by 75.7%. This compares with 87.3% and 62.4% in December respectively.
The card provider also found the domestic sector had benefited, with a rise in staycation bookings. UK hotels, resorts and accommodation enjoyed faster growth than in December, at 12.2%, compared with 8.2%.
Barclays said: “This growth is likely due to a combination of the impact of the restrictions in 2022, higher prices, and Brits spending more on holidays to make up for missed opportunities over the last few years.”
Travel purchases were one contributor named by Barclays for a 9.7% increase in total card spend year-on-year in January.
However, the cold snap in January led to spending on utilities increasing by 44.7% – the highest rate of growth since September 2022 – while the percentage who say they are concerned about rising household bills is unchanged at 92%.
”This comes as two-thirds of consumers say they are finding ways to save energy at home, with radiators, lights and ovens topping the list of appliances that Brits are using less often in order to save money," said Barclays.
Barclays director Esme Harwood added: “January saw a number of categories bounce back from last year’s Plan B restrictions thanks to Brits booking holidays, taking trips to the cinema, and snapping up bargains in the sales.
“However, while it’s encouraging that confidence in household finances saw a slight boost, it is clear that Brits will still need to find ways to manage their budgets over the coming months amid rising grocery price inflation and mounting utility bills.”
