New data from Deloitte reveals long holidays (+3.2 percentage points) and short holidays (+2ppts) were the only two categories of leisure spending to attract a meaningful increase in consumer spending during the first quarter of the year.

However, when asked about their spending intentions for the next three months, the 3,200 respondents to Deloitte's latest consumer tracker said they would prioritise spending on other leisure activities like eating and drinking out.

It comes after Barclays' latest monthly consumer spend report revealed spending on travel fell by 3.3% year-on-year in March after five years of consistent growth.

Deloitte's tracker revealed overall consumer confidence fell by three percentage points from -11.1% to -14.1% – the lowest level since Q3 2023 and the single biggest quarterly drop since Q1 2022.

Consumer sentiment about the state of the UK economy also decreased by 13.5ppts during Q1, the biggest drop since Q4 2024 which saw sentiment fall to levels last seen in Q4 2022, while discretionary spending has fallen to its lowest level since Q1 2023.

Oliver Vernon-Harcourt, Deloitte's head of retail, characterised the dip in Q1 as being "more representative of a conscious cutting back on non-essentials by consumers" than a post-Christmas slump.

Consumer insight lead Celine French added: "The impact of recent geopolitical events on the price of energy will likely feel like another setback for consumers. Many were already facing a squeeze on their household budgets at the start of the year with the slowing of wage growth and a cooling jobs market.

"With the prospect of another increase in the price of essentials, consumer confidence continues to be tested and is trending downwards to levels last seen four years ago. For consumer sentiment and spending to improve, households will want to see a more certain outlook for the economy.”