While UK consumers face tighter budgets in the wake of increased inflation, appetite for travel and experiences remains strong according to research commissioned by global payments platform Paysafe.
Sixteen percent of people in the UK report spending more on package holidays and 15% spending more on flights than they did before the cost-of-living crisis. A further 21% of UK consumers are spending about the same on package holidays and flights as they were before.
In a striking difference across age groups, it’s the younger generations who are prioritising their spend on travel. Thirty-three percent of 18-24-year-olds are spending more on flights now, versus just 6% of 45–54-year-olds. When it comes to package holidays, 23% of 18-24-year-olds are spending more, compared to 7% of 45–54-year-olds.
However, when abroad, UK consumers have budget constraints top of mind. Fifty-eight percent are relying on cash to better manage their spend, while a further 58% are using cash to avoid transactional fees that credit and debit cards offer.
The research* was conducted among over 14,000 consumers in Europe and the Americas and over 1,000 people in the UK. Commenting on the findings, Rob Gatto, Chief Revenue Officer at Paysafe, said: “Experiences are paramount for consumers despite the cost-of-living crisis and travel is one area where people are willing to continue spending their hard-earned cash, or even increase how much they spend. This is a trend that we are seeing in the UK as well as globally.”
