Spend on overall Hospitality & Leisure increased by 8.5% in September 2023, an increase compared to the year-on-year growth of 7.3% in August 2023, according to the Barclays UK Consumer Spend Report
This increase was predominantly driven by increases in spend growth at Bars, Pubs & Clubs, due to the warm September weather and Rugby World Cup, and Travel, as consumers likely booked holidays ahead of upcoming breaks. Spend on overall Eating & Drinking grew by 6.4% in September 2023 compared to this time last year, and up from the year-on-year growth of 5.2% in August 2023. The increase was predominantly driven by a rise in spend of 6.1% at Bars, Pubs & Clubs compared to this time last year, which is higher than the year-on-year growth of 2.8% in August 2023, as the unseasonal warm weather and Rugby World Cup encouraged consumers to go out.
On the other hand, spend at Restaurants decreased by -10.8% in September 2023 versus this time last year, a further decline compared to the year-on-year growth of -5.8% in August 2023.
This comes as 44% of consumers say that they are planning to rein in discretionary spending over the next couple of months to save money for the upcoming festive period, with eating out at restaurants (60%) the most frequently cited area to see cutbacks. Philip Richardson, Industry Director, Hospitality and Leisure, Barclays Corporate Banking, said: "Pubs, Bars & Clubs received a welcome boost in September, as consumers made the most of the unexpected late summer sun, and celebrated the beginning of the Rugby World Cup."
Spend at Hotels, Resorts & Accommodation grew by 7.9% in September 2023, the highest year-on-year growth since March 2023. This likely comes as consumers took advantage of the unseasonal warm weather in September to book last minute staycations in the UK.
Similarly, spend at Travel Agents grew by 7.1% in September 2023, an increase compared the year-on-year growth of 3.7% in August 2023, whilst Airline spend growth remained high at 31.1% compared to this time last year. This is likely due to consumers already booking holidays ahead of upcoming breaks this year and next summer.