Travel agents and airlines both achieved “robust” growth this year as the sector continued to thrive following the pandemic.
The latest Barclays consumer card spending report shows outlay at travel agencies up 10.4% over 2022 levels with transactions rising by 11.8%.
Spending with airlines grew by 30.8% year-on-year with transactions up by more than a quarter (28.7%).
Total travel spend was up by 15.2%, with transactions rising by 11.4%.
Hotels, resorts and accommodation saw spend rise by 6.9% with transactions up by 2.2%.
The increases for the travel and accommodation sectors outstripped an overall 4.1% growth in overall card spending throughout the year – half the 10.6% growth seen in 2022 as people cut back on new clothes, eating out and home improvements amid rising inflation and household bills.
“However, consumers continued to prioritise moments of joy and shared experiences, boosting travel, entertainment, and pubs and bars,” the new study said.
“After a standout performance in 2022, the travel sector continued to thrive in 2023, seeing robust growth at both travel agents (10.4%) and airlines (30.8%).
“The sector’s success was also a lasting impact of pandemic, with a fifth (19%) of consumers saying in November that they will be planning more holidays in 2024 because they’re still catching up on trips missed during lockdowns – a trend otherwise known as ‘revenge spending’.”
Barclays director Esme Harwood said: “Brits prioritised memorable experiences and shared moments with loved ones this year, boosting pubs, travel and entertainment.
“Many were keen to make up for lost opportunities during the pandemic by booking holidays, treating themselves to concert tickets, and enjoying nights out with friends.
“However, certain sectors saw noticeable cutbacks. Restaurants and clothing stores were hampered by the unpredictable weather, as well as the impact of rising household bills on consumers’ personal finances.
“Nonetheless, Brits’ confidence in their ability to spend within their means has remained resilient, as they become more resourceful and adept in finding ways to balance their budgets.”
The bank’s UK chief economist Jack Meaning added: “Although 2024 will be a tough year for the economy as a whole, the new year is a time to look for the positives.
“We expect to see the Bank of England start easing interest rates from the middle of the year, and in fact, we’re already seeing mortgage rates come down in anticipation.
“This is as the speed of price rises slows, which should continue to provide at least some boost to the spending power of people who have been squeezed through the cost-of-living crisis.”
He forecast 2024 as “a year of transition, from headwinds to tailwinds”.
Meaning added: “Come next December we should be able to toast the new year with more festive spirit.”