Spending with travel agents grew again last month, while overall travel transactions dipped for the fifth month in a row

According to new analysis of consumer card transactions from Barclays, travel spend was down -0.3 per cent year-on-year, and airlines -6.0 per cent.

However, travel agents saw a 2.5 per cent uplift, while hotels, resorts and accommodation grew 2.6 per cent, suggesting holidaymakers are still prioritising staycations over trips abroad amid ongoing travel uncertainty.

Overall card spending grew by 2.0 per cent in July, following a 1.9 per cent increase in June, but remained below the latest CPIH inflation rate of 2.8 per cent.

Essential spending grew 2.9 per cent and non-essential spending increased 1.6 per cent, with England’s run at the World Cup, the July heatwave and recovering consumer confidence all contributing to the uplift.

Confidence in the strength of the UK economy reached 30 per cent in July – representing a 21 month-high and a six-percentage point improvement on June. Confidence in the European economy also climbed six points to 35 per cent – the highest level recorded since Barclays started tracking this measure in 2015.

Rohan Kumar, head of spend insights at Barclays, said: “Card spending strengthened further in July, reaching its highest level for 12 months, with both essential and non-essential spend remaining in growth.

“Multiple factors played a part, with UK staycations, continued warm weather and England’s World Cup run lifting spending on travel, hospitality, everyday essentials and seasonal retail categories.”