Travel agents see spending rebound after three months of decline

Spending with travel agents returned to growth in June after three consecutive months of decline, latest Barclays data shows.

Overall outlay on travel showed signs of recovery last month, down just 0.1% after falling 5.7% and 5.8% respectively in April and May, according to the bank’s consumer card spending study.

Airline spend fell 5.4% in June, but travel agents returned to growth of 1.9%, with transactions up by 8.5%.

Meanwhile, hotels, resorts and accommodation climbed 1.7%, coming as a quarter (26%) of consumers say they are going on a UK staycation in 2026, up from 19% in April, Barclays research found.

Overall consumer card spending grew by 1.9% year on year in June, a “marked improvement” on May’s 0.8% growth, but below the latest inflation rate of 3%, the bank noted.

Non-essential spending increased 1.7%, while growth in essential spending reached a 14-month high, up 2.2%.

“The uplift was driven by a combination of stabilising consumer confidence, warm and sunny weather, and the arrival of the World Cup, which boosted several categories including pubs, clothing and general retail,” Barclays said.

“After June temperatures reached record highs of 37 degrees in some parts of the UK, retail spending reached an 11-month peak, up 1.9%.”

Consumers’ confidence in household finances (64%), non-essential spending (51%) and ability to live within their means (70%) were all broadly on par with May, while confidence in job security grew three percentage points to 46%.

Similarly, confidence in the global (26%), UK (24%) and European economy (29%) all remained within one percentage point of May’s results, the bank’s data revealed.

Barclays head of spend insights Johan Kumar said: “Card spending saw further uplift in June, with both essential and non-essential categories recording stronger growth.

“Record temperatures, stabilising consumer confidence and the start of the World Cup helped drive a broad-based increase in activity, boosting spending across everyday essentials, summer purchases and social occasions.”

Jack Meaning, the bank’s chief UK economist, addd: “While additional spending around the World Cup will be a welcome cushion for the hospitality sector, it remains true that the economy has slowed into the middle of the year. Looking ahead to the second half of 2026, we expect growth to pick up modestly, as improving consumer sentiment and reduced uncertainty are partially offset by the temporary inflation bump.”