Agents outstrip other sectors for transaction growth in July

Consumer card spending with travel agents grew year-on-year in July with transaction growth of 15.9% outstripping all other sectors.

Agents saw a two per cent rise in spending last month against overall expenditure growth of 1.4%, according to new Barclays data.

This represented a recovery from marginal 0.5% spending growth in June.

Meanwhile, spending with airlines rose by 4.7% year-on-year, although the number of transactions fell by 6.6%.

The overall travel sector saw monthly spend growth of 2.9% with transactions dipping by 2%.

Hotels, resorts and accommodation spend was up by 1.4% on a transaction decline of 1.8%.

Reporting on the July figures, Barclays said: “Essential spending declined 0.7%, however discretionary spend rose by 2.4% – an increase from June’s 0.8% growth – as changeable weather led shoppers to spend on both sunny and rainy-day activities and items.”

The bank also revealed that 7% of all ages use AI for creating a holiday itinerary or budget, rising to 13% by those in Gen Z aged between 18 and 27. AI was used by 12% of millennials aged 28-43, 5% of Gen X aged 44-59 and 2% of over-60s.

The most popular use of AI across all age groups and sectors is to compare prices, discounts and deals (12%); research products and services (11%); and create budgets (10%).

Barclays head of retail Karen Johnson said: “The summer sales, changeable weather and shoppers seeking the ‘feel-good factor’ led to a strong July for retailers, particularly among beauty, clothing and furniture stores. 

“While confidence in the UK economy remains subdued, prudent money management, supported by the growing popularity of AI tools to help with budgeting is contributing to a continued resilience in personal and household finances.”