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March saw the UK travel sector’s first sign of positive growth in 13 months on the back of increased confidence in economic recovery, according to new research.
The sector grew 2% year on year last month as consumers booked summer holidays with an assurance that was missing 12 months ago, according to MasterCard Advisors’ SpendingPulse, a macro-economic report tracking national retail and service sales.
Apart from impressive January growth of 4.2%, March showed the strongest growth rate for overall UK retail sales in three years at 4.1%.
“Retailers benefited from a return to discretionary purchasing with consumers spending more in sectors such as clothing, department stores and travel,” the report said.
Sarah Quinlan, group head and senior vice president at MasterCard Advisors – the credit card giant’s professional services arm – said: “It is great to see the UK travel sales return to positive growth.
“Over the last year, consumers have been understandably cautious about spending money on non-essential purchases such as holidays abroad.
“However, the travel sales figures in March suggest a return of discretionary spending, so vital to healthy spending patterns and an important sign of returning consumer confidence.
“Looking forward, if the UK can achieve consecutive months of improved growth rates, 2014 will be very positive for the travel sector overall.”
MasterCard UK and Ireland president Marion King said: “The impressive sales figures in the UK for March should certainly put a spring in the step of travel businesses and retailers overall.
“After another month of positive economic news alongside declining inflation and unemployment these figures suggest that consumers are starting to have faith in the resilience of the recovery.
“For growth to continue in this positive manner, it is essential that the public feel a tangible impact of the economic recovery – one that sees more money in their pockets.
“As the economy continues to improve, we would expect to see increased spending on travel in 2014 contributing to growth overall in the UK.”