Barclays’ 10 Years of Spend report found the value of travel purchases had “grown consistently since 2021, with travel agents seeing year-on-year increases in transaction value and volume despite macro shocks leading to a sharp decline in confidence in the UK economy”.
It also recorded a package holiday resurgence, with 26% of holidaymakers now preferring them, rising to 38% of under-35s, “driven by demand for value, convenience and consumer protections”.
The research also revealed half of consumers value holidays more than they did a decade ago, and a third now dedicate a greater share of their income to getaways.
Rich Robinson, Barclays’ head of hospitality and leisure, said: “The typical holiday has undergone a remarkable transformation since the start of the pandemic.
"While the DIY holiday once reigned supreme, we’re now seeing a resurgence in the popularity of package holidays and travel agents, particularly among younger travellers. This shift reflects a growing desire for value, convenience and stress-free planning."
Barclays’ research recorded a 15.5% jump in travel spend growth in 2023 during the post-Covid bounce. This growth figure fell back to 5.9% in 2024 – still more than double average UK inflation in that year.
It said travel was one of the “new essentials”, with consumers now viewing it among “non-negotiables”.
"Billions” of transactions and 200,000 completed surveys were used to identify trends defining consumer behaviour and spending. It said data showed major events and cultural shifts – such as Brexit, cost-of-living concerns, lockdown and the rise of Gen Z – “have transformed financial priorities”.
It found confidence in non-essential spending has held strong, at an average of 53% from 2015 to 56% in May 2025. This was despite only 28% saying they were now confident about the strength of the UK economy, compared to 45% a decade ago.
Karen Johnson, Barclays’ head of retail, said: “Ten years’ worth of analysis tells us that while confidence in the UK economy has declined, UK households’ confidence in their ability to manage their money has remained strong, translating into the impressive performance of categories such as travel, entertainment and beauty.
“The last decade has brought unprecedented levels of disruption. Amid all the highs and lows – from rising bills, job insecurity and a fluctuating global and national economy. It is encouraging to see that through purposeful spending consumers continue to prioritise the things that bring them joy, unlocking the potential for UK economic growth.”
While the report warned consumers were “becoming increasingly savvy, paying more attention to their budgets, value for money and pricing tactics than ever before”, it also said spending priorities were shifting.
It found “growth in discretionary purchases has outpaced essential spend since 2021, led by beauty, entertainment and travel”. Discretionary spend grew an average 9.2% between 2021-2024, outpacing essential spending’s 5% rise.
