Card spending on travel surged by more than 14% as damp July triggered a last minute rush to the sun.
New data from Barclays shows spending with travel agents was up by 7.8% last month, with transaction growth of 11%.
The amount spent bounced back after almost stagnant growth in June.
However, airlines saw increased spending of more than 39%, with transactions rising by 35.4%, likely reflecting a rise in air fares.
More: UK spend on holidays ‘set to hit £41bn’ this year
Holidays spend flat in June at £380m
Overall travel spend outstripped almost all other sectors last month at a rate of 14.3% with transaction growth of 12.5%,
This came as the wet weather hampered overall retail spending while shoppers continued to be selective about discretionary purchases.
Barclays reported total consumer card spending up by 4% year-on-year last month, down from 5.4% in June but higher than the May level of 3.6%.
The hospitality and leisure sector received a boost as people spent more on getaways, eating and drinking out with the start of the summer holidays.
“Travel spending also continued to perform well, with travel agents and airlines both seeing noticeable uplifts – 7.8% and 39.1% respectively – as holidaymakers made plans for the rest of the year,” the bank said.
However, concern around rising food prices remained high at 91%, leading seven in 10 (70 per cent) shoppers to look for ways to reduce the cost of their weekly shop – the highest percentage so far this year.
Concerns around food prices and the rising cost of living are also impacting economic confidence as just one-in-five (21%) reported feeling confident in the strength of the UK economy, down two per cent month-on-month in July.
Barclays UK economist Abbas Khan said: “Over the first half of 2023, high inflation rates have weighed on real household disposable incomes and constrained consumption.
“On the bright side, this headwind is expected to abate over H2 as inflation in essential categories such as energy and food is set to ease.
“However, offsetting this, more households are set to experience higher mortgage costs as they refix onto higher rates.
“Accordingly, while we do not expect a consumer recession in the coming quarters, growth is likely to be meagre,” he cautioned.