Nationwide’s Spending Report tracked debit and credit card transactions and direct debit spend during the month, finding holiday purchases had risen 19% compared with February, with cruises up 17% and air travel up 15%.
The amount spent on holidays reached almost £286 million, up 247% on March 2021. The number of transactions, 1.7 million, increased 21% compared to February and 375% year on year.
Air travel spend reached £58 million, up 15% on last month, with the amount spent on cruises totalling £9.6 million, an increase of 17%.
Travel spend was in line with the jump in total non-essential purchases of 16% recorded by Nationwide. However, it was eclipsed by the increase in spend on gardening, up 83% compared to the previous month. The next biggest increase was in charity donations, up 44% to £60 million.
Nationwide said: “Holiday, airline travel and cruises spend continues to see growth as people plan for or take what may be their first trip abroad since the pandemic started.”
It added the big rise in charity donations “includes significant contributions to charities supporting Ukraine”.
Nationwide’s research however found some worrying trends among essential spending.
Petrol, diesel and electric car charging spend was up 56% on March last year. Spending in supermarkets also saw a 15% increase in March as inflation and the rising cost of food and drink continued to bite.
Spend on utilities was up 10% year on year due to the rising price of gas and electricity.
Nationwide also noted a 29% increase in credit card use compared to March 2021. It said the rising cost of living “perhaps leads to people needing to turn to credit”.
