UK holidays see pullback

British consumers cut travel spending in March, ending five straight years of growth even as overall card spending still rose. (barclays.com) Barclays said travel spending fell 3.3% year on year in March, while total consumer card spending rose 0.9%, down from 1.0% in February. Barclays said that increase still lagged the latest Consumer Prices Index including owner occupiers’ housing costs inflation rate of 3.4%. (barclays.com) The bank said essential spending rose 0.5%, helped by a 1.6% increase in fuel purchases, while clothing spending rose 3.6% and entertainment rose 3.5%. Barclays bases the report on hundreds of millions of transactions and a survey of 2,000 people conducted from March 27 to March 31. (barclays.com; publicnow.com) The pullback breaks a run that began after Covid border restrictions eased in March 2021, when overseas trips rebounded and holiday spending kept climbing. Barclays said March was the first decline in travel since that reopening period began. (barclays.com; independent.co.uk) Barclays linked the slowdown to higher living costs and fresh anxiety over the Iran conflict, which pushed some households to postpone trips abroad or switch to domestic breaks. The Guardian reported consumers were weighing pricier holidays against rising household bills. (barclays.com; theguardian.com) The same survey found 14% of adults were delaying major purchases or building savings buffers in case costs rose further. Confidence in both the UK economy and the global economy slipped to 21% in March, down from 25% and 24% in February. (barclays.com; hospa.org) That caution showed up against an inflation backdrop that was already above wage-like spending growth. The Office for National Statistics said Consumer Prices Index including owner occupiers’ housing costs inflation was 3.2% in February 2026, and the March reading is not due until April 22, 2026. (ons.gov.uk; gov.uk) Barclays said most households still reported resilience, with 67% confident in their finances and 71% saying they could live within their means. March’s travel dip suggests that confidence is holding up better for everyday spending than for big-ticket holidays. (barclays.com)