Travel costs spike in August as agents make hay while the sun shines.

A few weeks of unseasonably warm summer weather didn’t stop consumers from spending money on travel in August, with the sector returning to growth for the first time since the war in Iran began in late February.

Travel spending growth reached 3.1% in August – its highest level to date this year – after five months of year-on-year declines, while travel agents also saw consumer spending rise 4.4% in August, the third straight month of year-on-year growth following positive results in June (1.9%) and July (2.5%).

There was also more good news for the sector, with airline spending rising for the first time in a year, up 3.5% year-on-year, while hotel, resort and hospitality sector spending also rose 3.5% year-on-year in August.

In its latest consumer spending report, Barclays said the rise shows more holidaymakers are choosing holidays over trips abroad this year, with 36% of respondents to the accompanying consumer research saying they would choose a holiday over a holiday abroad (33%).

Just over one in 10 respondents (14%) in a survey of 2,000 UK consumers conducted August 21-25 said they actively search for travel discounts, deals and last minute deals.

The Barclays data reflects consumer card spending from 25 July 2026 to 21 August 2026 and compares it with the corresponding data from 24 July 2025 to 20 August 2025. The bank claims that nearly 40% of credit and debit card transactions in the country are carried out through its issuing and acquiring businesses.

Total card spending increased 2.1% year-on-year in August following a 2% increase in July, although the figure remains below the CPIH inflation rate of 3.1%.

Consumer confidence in their household finances reached its highest level in six months in August (66%, up from 64% in July), and even more consumers (71%, up from 69% in July) said they felt more confident in their ability to live within their means in August.

However, confidence in the UK economy fell 4% month-on-month in July from 30% to 26%, although the 30% in July was a 21-month high. August’s 26% is also higher than the 2026 average of 24% so far. Barclays said this suggested economic confidence was “stabilising”.

The consumer research also found that the majority of Brits are ready for autumn after the hottest summer on record, with 41% saying they were ready for summer to end, 46% saying they were enjoying summer less due to heat waves and 53% saying they were looking forward to cooler autumn weather.

Rohan Kumar, head of spend insights at Barclays, said: “Card spending continued to gain momentum in August, hitting a 13-month high, while consumer confidence showed signs of recovery.

“Growth in discretionary shopping and strong performances in travel, food and drink, and entertainment all contributed to growth in hospitality and leisure, suggesting many ended the summer prioritizing vacations, social events and memorable experiences, even as price and value issues remained top of mind.”