- The cost-of-living crisis sees the return of the staycation with spend up 20% on domestic holidays
- Tighter budgets have seen travellers swap to budget airlines with the number of trips for these brands increasing 23% year-on-year
- Brits have been looking for ways to save with a massive 50% increase in offers and rewards claimed on travel purchases compared to last year
Consumers haven’t cut back on their holidays but are looking for cheaper options and deals as the cost-of-living crisis takes hold, according to new data from advertising platform Cardlytics.
The data, based on transactions from over 20 million UK bank accounts, shows that the number of holidays booked between April and June increased 7% on last year. However, average spend on travel across the board has flatlined. With just a 1% increase in average transaction values year-on-year, it seems that consumers are looking for ways to get away without breaking the bank.
For many this means holidaying closer to home, with staycations on the rise as domestic holiday spend increases 20% year on year. After a boom during the pandemic, UK-based getaways are back on the map with the number of trips up 40% when compared to the first quarter of this year, and up a further 4% on the same time period in 2022.
For those looking to go further afield for less, budget airlines have been the way to go. Average spend at these airlines has increased by 3% compared to last year. Whilst some of this can be attributed to increasing prices, the number of trips people have booked with these brands has followed a similar trajectory, rising a massive 23% compared to 2022. As travelers trade down, long-haul airlines have seen slower growth in the number of bookings at just 2% increase year-on-year. Whilst average spend with these brands has seen an uptick of 6% since last year, the lower number of trips indicates this increase is likely due to fuel increases and inflation leading to increased costs.
Getting the best rewards and discounts is top of mind for consumers looking to save on their summer travel, as cashback redemptions on these purchases see a 50% increase between April and June compared to last year.
Many holidaymakers have turned to package deals for not only value but convenience. Whilst average spend is down 2% year-on-year, the number of package holidays booked is up 13% on last year showing that consumers are still purchasing these deals, but they’re looking for the cheapest options.
Reinforcing that trend, online travel agents have also seen growth, with the number of trips booked up 22% on last year. This is coincided with a 5% rise on average transaction values, with inflation likely the cause behind this.
Hannah Collins at Cardlytics said: “With the summer break well under way, we are now starting to see the real effect the cost-of-living crisis is having on consumer travel spending. Whilst it’s positive that people are still booking getaways, price is becoming an increasingly important differentiator. Travel brands need to show they understand customer needs with tailored discounts and rewards in the channels they use most to encourage spend. This will be key in attracting those seeking a last-minute summer deal or a cheaper Autumn break.”
Cardlytics data is based on spending from over 20 million UK bank accounts. This data is based on spending between (unless stated):
- 30th March – 29th June 2023
- 31st March – 30th June 2022
Cardlytics (NASDAQ: CDLX) is a digital advertising platform. We partner with financial institutions to run their banking rewards programs that promote customer loyalty and deepen banking relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach, and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in Palo Alto, New York, Los Angeles, and London. Learn more at www.cardlytics.com.