According to Barclays' latest monthly consumer spend report, spending on travel dipped by 5.8% year-on-year in May, while transactions fell by 1.2%. Spending with travel agents, specifically, fared ever-so-slightly better, falling by 5.3% year-on-year in May, with agents actually seeing an uptick in transactions (+3.5%) compared with last year.

Airlines saw a sharper drop; spending with airlines in May fell by 12.9% year-on-year and transactions by 7.7%. By contrast, the hotels, resorts and accommodation sector bucked the downward trend, recording a 2.7% year-on-year increase in spending in May.

The Barclays data captures consumer card spending during the period from 27 April 2026 to 22 May 2026 and compares it with data from 28 April 2025 to 23 May 2025. The bank claims to see nearly 40% of the nation's credit and debit card transactions via its issuing and acquiring businesses.

Spending on travel dipped for the first time for five years in March (-3.3% year-on-year) after the US and Israel's assault on Iran. This was followed by a 5.7% downturn in April.

Barclays said holidaymakers were continuing to take a "wait-and-see" approach to their summer travel plans amid the war in the Middle East, adding that the 12.9% dip in spending with airlines "suggested consumers are putting off international travel".

A fifth of respondents to Barclays' accompanying consumer research – a survey of 2,000 people carried out over 22-26 May – said they would take a staycation this year, with almost half citing "convenience" (46%). Other reasons included a preference for UK trips (35%), cost (33%) and a desire to avoid air travel (30%).

The Barclays research also pointed towards a small uptick in consumer confidence in May after dips in March and April, with a quarter of respondents (25%) saying they were confident in the strength of the UK economy, up from 21% in March and 22% in April.

In addition, consumers' confidence in their household finances and ability to live within their means both improved by one percentage point (ppt) to 65% and 70% respectively, while their confidence to spend on non-essential items grew by three ppts to 52%.

'Strong late booking pattern'

New data from Abta, meanwhile, published ahead of its Travel Matters seminar in London on Tuesday (9 June), suggests people's appetite to travel remains undimmed despite the tough economic and geopolitical outlook.

Nearly two-thirds (64%) of respondents to a new Abta survey of 2,000 UK adults, which took place over 8-19 May, said they plan to travel overseas in the next 12 months, with more than a third (34%) saying they plan to spend more on holidays over the coming year.

When asked where they would make savings, 55% said they would cut back on eating out (55%), leisure activities (45%) and shopping for clothes andshoes (41%), with all coming before overseas travel (33%) and UK travel (23%).

Abta, though, said it was expecting to see "a strong late booking pattern" over the coming months, with three in 10 of those planning to travel this summer (May to September) now planning to book just two-to-four weeks in advance, with a further 10% saying they will book less than a fortnight in advance.

Among those planning to travel over the next 12 months, 38% said they have delayed booking. Top reasons include the cost of flights (43%) and of holidays (31%), the course of the conflict in the Middle East (36%) and waiting to see if cost of living conditions improve (33%). Only 26% cited jet fuel availability.

Cost of living (33%) was the main reason for putting off booking a holiday. Abta also charted an increase in people saying they would spend less on their holiday over the next 12 months (20%), up from 15% when it last carried out a comparable survey.

'Not an easy time for travel'

Mark Tanzer, Abta Chief Executive, said travel typically felt global and economic uncertainly "more acutely" than other sectors, adding the war in the Middle East had not only had an operational impact, it had driven down people's confidence to travel and their confidence in their finances.

“However, the appetite and interest to travel remains, and we continue to be hopeful for a strong summer season," said Tanzer. "There is plenty of competition in the market, which will ensure customers continue to get good value for their money.

"Clearly, is it not an easy time for travel. Not only do our members have to contend with the impact of the conflict in the Middle East, and its uncertainty, but also rising costs, such as increased business rates and Air Passenger Duty."