Nothing beats heading away for a spell abroad and it is this desire to enjoy the combination of sun, sea and sand on a summer holiday that saw travel spending shoot up in July.
Figures from Barclaycard’s latest monthly update revealed that spending on travel and entertainment leapt by 8% last month as families enjoyed their annual summer break.
And with the age of austerity seemingly behind us, families were also found to be spending “considerably more” on their travel plans last month. Increases were recorded in spending on hotels (+8%), travel agents (+4%) and airline tickets (+2%).
An upward trend in spending on holidays and entertainment was also recorded year-on-year in July, with consumers boosting their travel budgets by 3.5% across the year.
Increased spending comes in line with increased consumer confidence
Further figures from the update revealed that consumers’ increased spending may have come about as a result of their more positive financial outlook.
More than half (55%) of consumers who were questioned argued that they felt “confident about their personal financial situation” and believed that it was likely to “improve over the coming twelve months”.
More than three quarters (77%) also revealed that they felt confident that they were able to live within their means, while 19% revealed that they were planning to increase their holiday spend over the course of the next year.
Barclaycard managing director Chris Wood said: “As official figures show that the UK economy has finally recovered to its pre-crisis size, the growth in spending in July is a big boost for retailers after months of lacklustre performance.
“The extra spending on travel and entertainment was not only beneficial to businesses in those sectors but led to strong increases in spending on clothing and at department stores, creating a positive knock-on effect on the wider high street.”
A payment method ideally suited to your travels
A prepaid travel card offers a number of benefits for those heading off on a holiday abroad. Prepaid travel cards are available in GBP, EURO, USD, meaning you won’t need to change your pounds into foreign currency if you are visiting locations within this remit.
Using a prepaid travel card will also mean you won’t have to carry cash around on holiday and can simply top-up online 24-7 should you need to replenish your funds. It is also worth emphasising that you can only spend the amount which is on a card at any given time, which can be a huge help with budgeting while you are on holiday.