Travel spending declines as inflation bites
The high cost of living is starting to impact households ’spending power on non-essentials like overseas holidays.
Barclaycard spending data showed a 1.6% rise compared to last month but there was a marked drop in travel spend.
Spending fell nearly 4% at travel agencies and 3% at airlines, Barclaycard said.
“Inflation continues to have a noticeable impact, forcing shoppers to spend more on essential everyday items and cut back on some discretionary experiences such as holidays abroad,” said osé Carvalho, head of consumer products at Barclaycard.
Sales volumes in travel and other non-essential products are seeing much larger declines due to near double-digit inflation.
Airfares are up about 30% due to high demand and passenger caps.
Staycation popularity has driven higher spend in the domestic hotel sector category, which grew 2% in June.