The travel sector saw the best month in consumer spending in April since before the pandemic, new Barclaycard data reveals.
Consumer card spending rose by more than 18% last month as holiday bookings boosted the travel industry.
Spending on hotels, resorts and accommodation rose 16.6% compared to three years ago, the category’s highest growth since September last year.
The international travel sector also had its best month since before the onset of Covid-19.
Travel agents and airlines saw “significant improvements”, declining just 3.5% and 9.9% respectively, compared to the previous month’s contractions of 10.7% and 12.0%.
This comes as more than a fifth (21%) of people say they are making social or holiday plans for the long weekend in June to mark the Queen’s Platinum Jubilee, with 16% of this group opting for a staycation in the UK.
Almost a fifth (17%) of Britons are also spending more on special occasions, such as weddings and hen/stag dos and holidays this summer, to make up for lost time over the last two years.
This came despite the proportion of people feeling concerned about the impact of higher household bills on their finances remained high at 90%.
Average spending on utilities per customer jumped 28.8% year-on-year, as cost increases also continued to hamper consumer confidence, with optimism about the future of the UK economy falling slightly from 27% in March to 25% in April.
Barclaycard head of consumer products José Carvalho said: “The impact of rising living costs on consumer spending is starting to show, with a number of categories – including subscriptions, takeaways, and bars, pubs & clubs – seeing less growth than in March as Brits begin to feel the pinch.
“However, the improvements seen by airlines and travel agents are particularly positive, and hopefully point to a recovery in spending on international travel later this year.
“While concerns around rising household bills may continue to hamper spending on non-essential items, the upcoming Platinum Jubilee Weekend and summer months should provide opportunities for Brits to spend on celebrations and make the most of warmer weather.”