Travel agents and airlines defied a post-Budget slump in essential consumer card spending last month, new Barclays data reveals.
Spend on travel rose by 6% overall in November over the same month last year.
This was largely attributed to 7.3% growth in spend with travel agents and 10.6% with airlines.
Total transaction levels were up by 15.6% with agents and 4.8% with airlines.
Overall non-essential spending remained in growth last month despite essential spending suffering its steepest fall in more than five years, down 3.1%, according to the bank.
“Consumers’ confidence in their ability to spend on non-essential items reached its highest level since February,” Barclays said.
“Travel increased in November largely owing to increased spending at airlines and travel agents.
“Hotels, resorts and accommodation grew by 5.5%, an increase from 3.2% in October 2024 and the category’s highest growth since October 2023, as the winter blues seemingly prompted Brits to book getaways.”
The bank’s head of retail Karen Johnson said people were making cutbacks so they can afford “magical moments”.
Barclays chief UK economist Jack Meaning said: “Understandably, a number of factors weighed on consumer spending in November, notably easing consumer confidence post-summer, and expectations that post-Budget, inflation and interest rates will stay higher in the coming months.
“Looking ahead, the extent to which we see a seasonal bounce around Black Friday and Christmas will serve as a good test of the economy going into 2025.”