High consumer confidence leads to travel boost

High consumer confidence has led to customers spending more on holidays.

For the first time since the Deloitte Consumer Tracker began in 2011, it has seen customers who spent more on holidays outnumbering those who cut back this year.

It says consumer confidence is at its highest level for three years.

Overall confidence is three percentage points higher than a year ago and 13 points higher than when the Tracker began in Q3 2011.

Net spending on holidays has moved from -4% in Q3 2013 to 4% in Q3 2014. Net spending on short breaks and eating out rose 10 points from -13% in Q3 201 to -3%  in Q3 2014.

Graham Pickett, head of travel, hospitality and leisure at Deloitte, said: "Consumers have found more in their pockets to spend on non-essentials like holidays, short breaks and eating out. 

"They made the most of picking up late summer holiday bargains and were helped by the good weather extending into September.  With inflation on a declining path and earnings heading up, the scene is set for a recovery in real incomes around the turn of the year. 

"However, all is not rosy in the garden of the aviation and travel industry.  Despite lower fuel prices there is still a correction needed between the demand levels being seen versus the capacity that has been brought into the market over the last six months.

"Yields will be a challenge especially if a threatened interest rate rise does come through to test consumer confidence."