Spend on travel fell for a fifth consecutive month in July, according to Barclays latest UK Consumer Spend Report.
The report, which analyses UK customers’ credit and debit card spending, found that overall spend on travel last month was down 0.3% compared with July 2025 and airlines saw a 6% drop in spend, though only 1.8% fewer transactions.
Spending at hotels and in resorts and other accommodation was up 2.6%, suggesting holidaymakers are still prioritising staycations over trips abroad ‘amid ongoing travel uncertainty’, it said.
However, the report also found that travel agents saw 2.5% growth in spend and a 5.7% increase in the number of bookings.
Overall, spending on non-essential items grew by 1.6% in July versus July 2025, supported by summer holiday spending, socialising and season purchases – though some categories softened after the uplift triggered by June’ heatwave, said Barclays.
At the same time, confidence in the UK economy rose six percentage points month on month to reach a 21-month high.
Consumers said they felt more confident in both their job security and ability to spend on non-essential items at 47% and 53% respectively.
Head of Spend Insights at Barclays Rohan Kumar said: “Card spending strengthened further in July, reaching its highest level for 12 months, with both essential and non-essential spend remaining in growth.
“Multiple factors played a part, with UK staycations, continued warm weather and England’s World Cup run lifting spending on travel, hospitality, everyday essentials and seasonal retail categories.”
