Several weeks of unseasonably warm summer weather didn't stop consumers from splashing the cash on travel in August, with the sector returning to growth for the first time since the start of the war in Iran in late-February.

Growth in spending on travel reached 3.1% in August – the highest level to date this year – after five months of year-on-year decline, while travel agents also saw a 4.4% uptick in consumer spending in August, a third consecutive month of year-on-year growth after positive outcomes in June (1.9%) and July (2.5%).

There was more good news for the sector too with airline spend growing for the first time for a year, up by 3.5% year-on-year, and there was 3.5% year-on-year growth in spending too in August for the hotels, resorts and accommodation sector.

Barclays, in its latest Consumer Spend Report, said this growth suggested more holidaymakers are opting for staycations in lieu of overseas trips this year with 36% of respondents to accompanying consumer research saying they would take a staycation versus an overseas holiday (33%).

Just over one in 10 respondents (14%) to the poll of 2,000 UK consumers, carried out over 21-25 August, said they were actively looking for travel discounts, offers, and last-minute deals.

The Barclays data captures consumer card spending during the period from 25 July 2026 to 21 August 2026 and compares it with the corresponding data from 24 July 2025 to 20 August 2025. The bank claims to see nearly 40% of the nation's credit and debit card transactions via its issuing and acquiring businesses.

Overall card spending increased by 2.1% year-on-year in August following July's 2% increase, although this remains below the CPIH rate of inflation (3.1%).

Consumers' confidence in their household finances hit the highest level for six months in August (66%, up from 64% in July) and more consumers (71%, up from 69% in July) said they felt more confident in their ability to live within their means in August.

However, confidence in the UK economy fell by 4% month-on-month in July from 30% to 26%, although that 30% in July was a 21-month high. August's 26% is also above the 2026 average to-date of 24%. Barclays said this suggested economic confidence is "stabilising".

The consumer research also revealed most Brits are ready for autumn after the UK's hottest summer on record: 41% said they are ready for summer to be over, 46% said they enjoyed summer less owing to the heatwaves and 53% said they were looking forward to cooler autumn weather.

Rohan Kumar, Head of Spend Insights at Barclays, said: “Card spending continued to build momentum in August, reaching a 13 month-high, while consumer confidence showed signs of recovery.

"Growth in discretionary purchases and strong performances across travel, eating and drinking, and entertainments all contributed to a boost for hospitality and leisure, suggesting many finished summer by prioritising holidays, social occasions and memorable experiences, even as price and value concerns stayed firmly front of mind."