The travel industry saw a notable increase in non-essential spending last month, fuelled by rising expenditures on cruises and holidays.
- Cruise bookings surged by 27% compared to December 2022, demonstrating a strong preference for this type of holiday.
- Total holiday spending rose by 11%, outpacing expenditures in dining establishments.
- Essential spending trends highlighted a 47% rise in electric vehicle charging, while non-essential spending was led by bowling and cruises.
- Gabby Collins from Lloyds Bank highlighted the effect of the UK’s weather on the increase in holiday bookings as people seek sunnier climates.
The travel industry witnessed a marked rise in non-essential spending during the last month of 2023, as per the latest data. This surge was significantly driven by an increase in bookings for cruises and holidays. Notably, cruise expenditures saw a remarkable 27% increase compared to December 2022, highlighting a renewed interest in cruise holidays among consumers.
Holiday spending overall witnessed a substantial 11% rise, surpassing the growth in restaurant spending during the same period. This indicates a shift in consumer preference towards holiday experiences over dining out. The data underscores the resilience of the travel sector, even in the face of broader economic challenges.
In the realm of essential spending, electric vehicle charging saw the highest increase of 47%. However, within non-essential expenditures, cruises were second only to bowling, which experienced a resurgence as families and friends embraced traditional leisure activities.
Gabby Collins, payments director at Lloyds Bank, noted that the inclement wet weather across the UK played a role in encouraging consumers to book holidays abroad for warmer climates. This behaviour suggests a direct correlation between weather conditions and travel bookings, as people seek to escape to sunnier destinations.
The increase in spending on leisurely pursuits, such as cruises and holidays, reflects consumer confidence in enjoying activities with loved ones. Collins remarked on the benefits of regularly assessing household budgets to balance essential costs with discretionary spending on enjoyable activities.
The end of 2023 saw significant growth in cruise and holiday spending, highlighting consumer confidence despite economic pressures.
