Consumer spending on travel grew by 6.9% in 2024, down from 15.2% in 2023. Growth in total travel transactions also slowed from +11.4% last year to +6.8% this year. Holidays, though, remain consumers’ number one discretionary spending priority.
Spending with travel agents specifically increased by 7.9% year-on-year, down from 10.4% in 2023, although growth in total transactions with agents went up by 14% in 2024 compared with growth of 11.8% last year.
Growth in spending with airlines slowed more dramatically, down from +30.8% in 2023 to +7.5% in 2024. Total transactions with airlines also fell from +28.7% to +8.5%.
However, growth in spending on travel (+6.9%) outperformed the overall rate for non-essential spending (+1.9%), as well as the entertainment (5.8%), hospitality and leisure (+5%) and eating and drinking (2.5%) sectors.
"Travel sector spending stayed strong in 2024 but lagged behind 2023," said Barclays. "Holidaymakers spent £1,117 on average each on travel, and travel agents (7.9%) and airlines (7.5%) both saw significant uplifts in the period."
Barclays accompanying consumer confidence survey, which asked 2,000 UK consumers to rank their discretionary spending priorities, also saw holidays come out on top chosen by more than a fifth (22%) of respondents.
"Three in 10 consumers (28%) have already booked a getaway for 2025, with almost a quarter (23%) of these holidaymakers booking early to save money, and one in three (31%) choosing to visit a new destination they’ve not been to before," said Barclays.
"One in five Brits say they adopt a ‘treat yourself’ mindset when travelling, while 37% say that when they go on holiday, they tend to spend more than they had planned to."
The data bodes well for the busy peaks and wave selling periods in the new year, and interestingly, the report highlighted people’s readiness to spend in person as well as online.
Total year-on-year growth in online spending (4%) was bested by face-to-face (4.1%) and it was a similar story in terms of transaction growth, with face-to-face up by 4.3% versus 3.6% for online.
’New essentials’
Karen Johnson, Barclays’ head of retail, said: “2024 demonstrated Brits’ strong appetite for experiences very clearly, spending selectively elsewhere in order to find room in their budgets for the moments and treats that the most matter to them.
“From The Eras Tour to the much-anticipated Oasis reunion; blockbusters at the cinema to quality content on the couch; pastries to lipsticks and planning trips abroad, Brits collectively said ‘yes’ to joy in their spending, even against a backdrop of rising bills and living costs.
"This conscious consumerism will continue to shape spending in the new year, with entertainment likely to maintain its momentum, as Brits continue to embrace their ‘new essentials’."
Barclays 2024 Consumer Spend report is based on credit and debit card transactions made between 25 December 2023 and 15 November 2024 compared with transactions made between 25 December 2022 and 17 November 2023.
