The travel sector had a “particularly strong month” in August thanks to “cut-price deals”, according to figures from Barclays.
In its monthly consumer card spending report, the bank said spending in the travel sector was up 6.8% year on year “following news that several low-cost airlines have been offering last-minute holiday deals in order to tempt Brits abroad”.
Spending with travel agents was up 7.2% and airlines were up 8.3%, with both seeing their highest growth since February and March respectively.
The findings echo Travel Weekly’s recent report, which said agents and operators have reported strong sales in August, buoyed by lates, cruises and summer 2025 bookings.
The figures from Barclays also showed the number of transactions as well as spending levels. Transactions for agents rose 11.7% year on year, while airlines saw transactions up by 1.6%.
The Barclays Consumer Spend report combines hundreds of millions of customer transactions with consumer research to provide an in-depth view of UK spending.
The bank said consumer card spending overall returned to growth in August, rising 1% year-on-year following two consecutive months of decline.
Non-essential spending was up 0.7%, “thanks to the late arrival of barbecue weather propping up butchers and garden centres”.
Meanwhile, nearly half of Brits reported that they are treating themselves to affordable, mood-boosting luxuries, such as pastries and cosmetics, even while tightening budgets.
Furthermore, 70% said they were more confident in their household finances, compared to 65% last month.
Karen Johnson, head of retail at Barclays, said: “It’s encouraging to see that Brits are feeling noticeably more confident in their personal finances – a strong indicator of future spending as we approach the crucial festive period.”
Jack Meaning, chief UK economist at Barclays, added: “Having seen government spending drive the economy in the second quarter, and private consumption relatively muted, this data very much supports our view that the balance will shift over the second half of the year and into next.
“Growing real incomes and strengthening consumer confidence should combine with falling interest rates to increasingly allow consumers to put their spending power to work.”
