Total spend on airline tickets in June was 5% below May, but still a huge 38% ahead of where it was in June 2022. The number of transactions made to airlines rose 37% year-on-year, but increased only 3% on the previous month.
Holiday purchases in June showed zero growth compared with May but were 4% ahead on June last year. Transaction value rose 7% compared with June 2022 and 1% on last month. Nationwide classes holidays as payments to hotels and travel agents and for packages and cruises.
Despite worries about the economy, the value of holidays bought in June – £380 million – compares favourably to the £321.5 million paid in January. Similarly, flight sales in June totalled £78 million, not far below January’s £82.6 million.
MORE: Catch up with TTG’s latest Travel Agent Tracker trade trends report
The Nationwide Spending Report, a monthly analysis of more than 239 million debit card, credit card and direct debit transactions, revealed around £8.63 billion was spent overall in June on essentials and non-essentials – like travel – in June. This marked an 8% increase year-on-year.
The report said: “June recorded a continuation of the positive annual growth on non-essentials. Spending rose 7% compared to the same month last year, while the number of transactions made on discretionary items was 8% higher.”
Nationwide said growth in spending coincided with a drop in the number of people worried about personal finances and their ability to cover essential costs. According to Nationwide’s latest poll, this now stands at 57% – down from 67% last month and the lowest this year. Despite this, nearly 60% of households are cutting back on spending.
Nationwide highlighted concerns in three key areas, with mortgage payments up 14% year-on-year and rents up 19%. Spending on utilities was 15% higher than in 2022, with the average around £90 a month. Similarly, supermarket spend rose 14% year on year.
Financial optimism ‘at its highest point this year’
Mark Nalder, Nationwide’s payments strategy and performance director, said: “Uniform growth in spending suggests that, despite higher prices, people are able to manage their money by balancing the things they need with the things they want.
“This is reflected in the findings of our research, which shows that financial optimism has reached its highest point this year, although this must be put in perspective given how low confidence had been previously.”
He concluded: “The more upbeat mood comes despite our research showing that people’s spare money has decreased over the last year, perhaps indicative of households becoming more effective at managing their money.”
TTG has just published its second Travel Agent Tracker report of the year, featuring more than 40 agent data points, so for more travel trade insights, take a look at the report today.
