Holidays abroad take a hit as cost of living fears and Iran conflict weigh on British consumers

"Travel spending slipped into reverse last month as households braced themselves against a fresh wave of cost of living pressures and the economic shockwaves emanating from the Iran conflict."

"Spending at travel agents tumbled 4.6 percent, airlines saw a 4.1 percent drop and public transport receipts fell 2.9 percent, marking a significant shift in consumer behavior."

"One in seven adults has either delayed a significant purchase or started squirrelling away cash in anticipation of higher energy costs this summer, reflecting growing financial caution."

Travel spending by British households declined by 3.3 percent in March, marking the first annual drop since March 2021. This decline is attributed to rising cost of living pressures and economic instability from the Iran conflict. Spending at travel agents fell by 4.6 percent, airlines by 4.1 percent, and public transport by 2.9 percent. In contrast, domestic hospitality saw a 1.2 percent increase. One in seven adults has delayed significant purchases or saved cash in anticipation of higher energy costs this summer, despite a temporary reduction in the energy price cap.

Read at Business Matters