‘Rising consumer confidence reflected in holiday spending’ - Deloitte

UK CONSUMER confidence rose over the past three months to a three-year high resulting in a net increase of household spending on holidays, according to the latest Deloitte Consumer Tracker.

Net spending on holidays rose 4%, meaning those spending more outnumbered those who cut back for the first time since the Tracker began in 2011, with holidays the one area of discretionary spending to enter positive territory.

Spending on short breaks and eating-out also rose, by 10% on a year earlier, although those spending less year-on-year still outnumbered those spending more by 3%.

Consumers also reported being likely to spend more on holidays in the final quarter of the year than last year. The tracker forecast net spending on short breaks and eating out would also improve over the next quarter.

Deloitte’s head of travel, hospitality and leisure Graham Pickett said: ‘Even without growth in real incomes, consumer confidence has continued to rise. Lower oil prices and commodity prices and a strengthening pound have led to a sharp decline in inflation. An improving jobs market and lower inflation have also been a real tonic. Consumers have found more in their pockets to spend on non-essentials like holidays, short breaks and eating out.’

However, he added: ‘All is not rosy in the aviation and travel industry. There is still a correction needed between the demand levels being seen versus the capacity that has been brought into the market over the last six months.’

The Deloitte Consumer Tracker is based on a quarterly survey of 3,000 UK adults.

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