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Consumer spending on car hire, hotels, travel and flights all increased during the first quarter of 2017, according to new research conducted by Cardlytics.
The spending data of more than 3 million active UK bank account customers was analysed for the study, which found that airline spending increased at a rapid rate as people quickly booked holidays.
Airline spending increased by a massive 58.4% when compared to the previous quarter, whilst hotel spending saw a 9.1% rise from the final quarter of last year.
The amount spent on car rental also recorded a 7% compared to the final quarter of 2016, which coincided with an increase in the number of travellers who enjoyed domestic breaks.
Travel spend across the board saw a 37.5% rise on the last three months of 2016 and has increased by 3.8% year-on-year.
A rise in consumer spending across the travel industry is reflected in a 2.7% rise in overall consumer spending compared to this time last year.
Despite this, the signs are that consumers will tighten up on their spending throughout the rest of the year and look to find cheaper holidays.
As a result, the British tourism industry is set to benefit considerably, especially as a drop in the value of the pound means the UK has become much more of an attractive proposition for foreign tourists.
Nearly two-thirds of international holidaymakers revealed that they were more interested in holidaying in the UK than they were this time last year in a survey by Barclays.
The main reason for this rise in interest was value for money, with 31% indicating the weaker pound made the UK a much more attractive holiday destination.
“2017 looks set to be a strong year for the British hospitality sector with both domestic and international visitors increasingly intent on spending more time here,” said Mike Saul, Head of Hospitality and Leisure at Barclays.
If you’re thinking of travelling abroad this year, be sure to organise your budget travel insurance in advance
Date Created: 04/05/2017