Spend on travel jumped in May despite rising cost of living costs and airport disruption.
Last month was “particularly strong” for the travel industry, which outpaced inflation and grew year-on-year and month-on-month, according to Barclaycard’s monthly consumer spending index.
Spending on holidays increased by almost 190% compared with the same month last year, when the industry continued to be hit by Covid-related travel restrictions.
More: Travel spend in April ‘best since before pandemic’, Barclaycard reports [May 22]
Holiday bookings drive rising consumer spending [Feb 22]
Credit and debit card spending with travel agents grew by 24.2% month-on-month, with a 6.6% rise for airlines as more people booked summer trips abroad.
Hotels, resorts and accommodation in the UK saw an increase of 1.2% month-on-month, which Barclaycard said suggested “a parallel rise in staycation booking in May”.
The data from Barclaycard, which handles almost half the UK’s credit and debit card transactions, found that spending on essential items grew by 4.8%, mainly because of inflation and a 24.8% hike in petrol and diesel prices.
Energy costs in the home jumped by 34.5% year-on-year, and a recovery in commuting pushed up spending on public transport by 83.3%.
But spending on eating and drinking outside the home was squeezed by the cost of living, with outlay at restaurants down 5.9% over April and spending on bars, pubs and clubs 1.2% lower.
Spending on digital content and subscriptions declined by 5.7%.
Barclaycard said this was owing either to high levels of pent-up demand last year following the easing of restrictions, or to the direct impact of rising living costs.
Shopping at supermarkets fell by 2% compared with May last year, and 4% of consumers said they were looking for ways to cut their weekly shop to offset the rise in living costs.
Barclaycard head of consumer products Jose Carvalho said: “The cost of living squeeze is clearly influencing discretionary spending habits, with figures showing a decline in subscriptions, and a drop in spending at restaurants, bars, pubs and clubs.
“While consumer confidence continues to fall, we hope to see at least a short-term boost thanks to the Jubilee Weekend, and the recently announced £400 energy bill discount coming in October.”
More: Travel spend in April ‘best since before pandemic’, Barclaycard reports [May 22]