Spending on holidays and travel in January defied cost of living concerns, new research reveals.
A poll by Nationwide Building Society found that nearly two in five (39%) people have already booked a holiday either in the UK or abroad for this year.
Nationwide estimated that total spend on holidays rose by 43% year-on-year in January to £321 million with total transactions up by 30% to 1.7 million.
Airline bookings rose by 68% to hit £82.4 million with transactions up by 54% to 366,783.
Nationwide said holidays and travel are driving overall non-essential spending, reinforcing why there has been an uptick in the outlay on holidays and travel in January.
The proportion of people booking rises to almost half (48%) of those aged 18-34.
Meanwhile, only 31% of those aged between 45 and 54 say they have already planned and booked their trip abroad.
The north west (46%) and north east (44%) are the regions where people are most likely to have already booked a holiday for this year.
But those in the south west (31%) and Wales (35%) are least likely to have already done so, according to the study.
Nationwide payments strategy and performance director Mark Nalder said: “We often see a month-on-month drop in January as spending falls back from the elevated levels seen in December, but also as people look to start the new year by reining in their discretionary spending.
“This is reinforced through our consumer research, which highlights ongoing concerns among consumers about their finances and their ability to cover essential costs at a time when the cost of living remains high.
“But it’s not all doom and gloom. Despite worries, the nation is preparing for warmer weather and one area of non-essential spending where there has been a significant uptick in January is holidays and travel, as people look to plan ahead and book some time away from home during this year.”