Travel spending rose in August after five months of decline

Travel spending rose after five straight months of decline. as consumer confidence remained “robust” in August, new data shows.

According to Barclays’ latest monthly consumer spending report, travel agents experienced a 4.4% year-on-year increase in card spending and a 7.4% increase in transactions. This compares to agent card spending of 2.5% in July, following a 0.1% decline in June.

This comes as 14% overall were actively searching for travel discounts, deals and last minute deals in the past month.

Airline spending rose for the first time since August 2025, rising 3.5%, with transactions up 1%.

Growth in total travel spending reached 3.1% in August, the highest level since the start of the year and a “marked improvement” after five straight months of decline.

Separately, hotels, resorts and accommodation grew 3.5% as more holidaymakers choose holidays in the UK over trips abroad in 2026, up 36% from 33%, Barclays said.

Strong tourism performance contributed to the hospitality and leisure segment’s growth of 3.3%, while retail spending increased by 1.2%.

Total card spending rose 2.1% year over year last month, building on July’s 2% rise but remaining below the latest consumer inflation rate of 3.1%.

Spending on both essential and non-essential items increased 2.1%, supported by improved consumer confidence and strong performance in the hospitality and leisure sector.

It came as consumer confidence in their household finances reached its highest level in six months at 66% in August, up from 64% in July.

Consumers also reported feeling more confident in their ability to live within their means (71%, up from 69%) and spend money on essentials (54%, up from 53%), according to the bank’s research.

Rohan Kumar, head of spend analytics at Barclays, said: “Card spending continued to rise in August, reaching 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.”

The bank’s chief UK economist, Jack Mining, added: “Consumer spending and confidence remained resilient in August, even as pressures from the Middle East began to weigh on prices.

“This positive news suggests that consumers will be able to weather the bout of narrowly targeted temporary inflation that we think is coming.

“However, this week has shown that risk remains. If the situation in the Middle East continues or worsens in the coming months, struggling households may have to be even more selective about their spending.”