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Staycation demand sees hotel spend grow for first time since pre-pandemic levels

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New data has found that spending on hotels, resorts and accommodation in the UK saw its first growth since pre-pandemic levels in June.

Fuelled by the increased demand for a staycation in this country and the restrictions on international travel, Barclaycard research highlighted that consumer spending on hotels grew 5.4% last month as Brits continued to holiday in the UK.

Many remain cautious about overseas travel, with the traffic light system restrictions continuing to impact travel agents and airlines, which saw respective decreases of 75.3% and 70.9%.

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The Barclaycard data showed that consumer spending across all categories contributed to an 11.1% rise in June, with the sunnier weather and sporting events helping to boost the economy.

As the nation enjoyed key sporting events, spending at pubs and bars rose 38.1% – the biggest increase since September 2020.

This trend looks likely to continue, as over two fifths (41%) of Brits say fixtures taking place over the next few weeks, including the Tokyo Olympics, will increase their spending as they socialise with friends and family and enjoy a summer of sporting entertainment.

Restaurants also showed early signs of recovery, experiencing a relatively low fall in growth (-8.4%) when compared to the 74.4% and 53.2% declines recorded in April and May.

This trend looks set to continue over the summer as restrictions ease, with consumer confidence data finding that 22% of Brits upped their spending on meals and drinks out on sunnier days.

Entertainment, which includes cinemas, bowling alleys and golf courses, also showed signs of recovery as Brits enjoyed outdoor activities and more leisure venues opened, with just a 1.7% decline – a noticeable improvement on the 28.6% drop last month.  

Raheel Ahmed, head of consumer products, said: “June saw Brits flock back to pubs, bars and beer gardens to watch the football and tennis on the big screens, as the heatwave early in the month encouraged many of us to get out in the sunshine and socialise.

“The start of the Olympics and the expected easing of restrictions later this month should continue to lift spirits and provide more opportunities for get-togethers, whether that’s a weekend break, a meal out or to celebrate sporting victories. It’s great to see Brits making up for lost time over the past year.”

Tags : BarclaycardhotelsMARKET DATAspending
Zoe Monk

The author Zoe Monk

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