Measure results

Here to stay(cation)

According to recent Cardlytics data, we found that UK staycations will be most popular among holiday makers, with nearly half (44%) of those planning to go on holiday this year opting to stay local, compared to short-haul (38%) and long-haul (24%) destinations. Holiday lettings providers like Airbnb and Vrbo have also seen increased transaction volumes maintain year-on-year. Transaction volumes a year ago (December 2022 into January 2023) hiked 54% year-on-year, reaching 60,353 transactions, with similarly high levels this year (58,562 transactions) indicating a shift from more expensive hotel bookings.

Tour de Force

Tour operator providers such as Tui, Virgin Holidays and Jet2 have seen a continuation of their post-Covid revival, with transaction volumes growing 7% year-on-year, after a massive 61% growth against the previous period (December 2021 into January 2022). This is a further indicator of travellers seeking value where they can.

Airlines take off

Alongside those seeking to stay local, airlines such as British Airways and Virgin Atlantic also saw a rise in spending, with overall spending up 13% year-on-year, and transaction volumes up 15% in the same time period. This indicates those that can afford longer-haul destinations are prioritising doing so, as the high cost-of-living shows signs of easing. Budget airlines also saw a 3% rise in spending, with the volume of transactions up 2% year-
on-year.
According to Hannah Collins, Partnership Director, Travel: “We are continuing to see the real effect the cost-of-living crisis is having on travel spending, with the increase in domestic holiday bookings demonstrating the focus on finding more affordable getaway options. “That said, people are on the hunt for their ideal 2024 holiday – they’re just seeking the best possible deals and promotions on the market. With that in mind, travel brands and booking sites need to ensure they’re offering the most targeted and personalised discounts and rewards to ensure they continue to attract and retain customers to drive incremental growth in what’s set to be another tough operating environment this year.”

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Download our infographic here.

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Cardlytics data is based on spending from over 20 million UK bank accounts. This data is based on spending between (unless stated): The four weeks leading up to 8th January of each year:

• This year (2023/24): 7th December 2023 – 8th January 2024
• Last year (2022/23): 8th December 2022 – 7th January 2023
• 2021/22: 9th December 2021 – 6 th January 2022

The poll was conducted by Opinium, based on a sample of 2,000 adults between 12-16th January 2024.

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The ‘golden quarter’ is a critical trading period for grocery retailers. A celebratory time of year, grocers typically get a boost from shoppers socialising more and preparing for Christmas. However, this year has brought a fresh set of challenges as consistently high inflation has put a dampener on consumer confidence and tightened wallets.

With interest rates still high, the cost-of-living crisis has continued to impact purchasing trends. But what does this mean for the grocery market? How will overall grocery sales, and shopper habits, affect grocers Christmas draws ever closer?

Our new grocery spending report is based on spending analysis from over 20 million UK bank accounts, as well as polling of over 2,000 UK adults. It offers insight for retailers as we head into the final stretch of the golden quarter and offers strategies for enhancing customer loyalty at this critical time.

Discount Christmas?

Our research shows that consumers are increasingly turning to discounters and loyalty schemes as they face the ongoing cost-of-living crisis.  In fact, our polling suggests that the average shopper has seen their grocery bills increase by £644 this year.

In response to heightened costs, consumers are seeking discounts: over a quarter have turned to loyalty and reward schemes (28%) and online discount codes (26%), while 22% are browsing price comparison sites and a fifth of consumers are using cashback offers (20%) to manage expenses.

This search for value is also translating to what people are buying and from where. Almost two in five consumers are buying more own-brand supermarket products, and a quarter are switching to cheaper brands and discount chains. As Christmas approaches, 26%plan to cut back on presents, while 22% have curtailed big-ticket purchases.

As we approach Christmas, grocery spend is anticipated to rise as families opt for home-based celebrations, driven by ongoing high living costs.

Harnessing the trend of savvy shoppers, discount grocery retailers have undoubtedly benefited from a reputation for value, as well as a focus on deals and personalised offers. As a result, they’ve grown at a faster rate than the traditional ‘big four’ grocers. Discount grocery stores saw transactions increase by 2% between June and September this year, with consumer spend also increasing by 6%.

The big four supermarkets have seen a 5% increase in spend but a 4% decrease in transactions, signifying a shift to cheaper alternatives.

The run-up to Christmas represents an opportunity for the bigger supermarkets to reverse this movement. But doing so will require them to be smart with the way they market their food and drink. Leveraging the data and insights on customer preferences will be important to entice customers back as they start making bigger ticket purchases for parties and the all-important festive meals with friends and family.

Are you a grocer looking to get customers back through the door this festive period? Cardlytics offers extensive insight and marketing support for retailers, with access to spending data from over 20 million UK bank accounts.

By providing this ‘whole wallet view’ to grocers, you benefit from a deeper understanding of the competitive landscape and implement precise, targeted marketing that delivers tangible results. Heading into the final stretch of the Golden Quarter, we’re helping our customers leverage this data to drive incremental sales growth and retention, as consumers look to find the most value for money with their Christmas spending.

Cardlytics recently took the stage with Lyft at eTail East in Boston, MA to explore how marketers can elevate their approach to growth marketing and stay ahead of data deprecation. 

Within the ever-changing retail and DTC industry, marketing leaders need to be able to demonstrate the impact that their advertising spend is having on revenue generation and corporate strategy.  Kevin Hsu, Director, Growth Marketing at Lyft and Nate Bucholz, Vice President, Advertising Partnerships at Cardlytics discussed how leveraging a data-drive approach to growth marketing drives measurable revenue for the rideshare leader. 

Watch the full video below!

Looking to explore how Cardlytics Purchase Insights can help you engage customers in a one-of-a-kind native ad platform? Get started.