UK consumers are starting to cut back on travel spending, with the latest figures suggesting households are becoming more cautious about higher discretionary costs.

New data from Barclays shows overall card spending rose by just 0.9% year on year in March, slightly down from 1% in February.

Within that, travel spending fell by 3.3%, marking the first decline seen since March 2021.

Overseas travel starting to slow

The figures suggest many households are either delaying trips abroad or opting for UK-based breaks instead.

Spending fell across several travel-related categories, including:

• travel agents
• airlines
• public transport

At the same time, hotel and accommodation spending increased slightly by 1.2%, helped by more domestic bookings over the Easter period.

Cost pressures still shaping behaviour

Wider economic uncertainty continues to affect spending habits.

Ongoing tensions in the Middle East have added further concern around energy prices and household costs. Research linked to the Barclays figures found that around one in seven adults have delayed major purchases or focused more on saving because of concerns about rising energy bills.

Although the UK energy price cap fell by 7% in April, forecasts suggest it could increase again in July due to higher wholesale energy prices.

Essential spending rising again

Essential spending increased modestly overall by 0.5%.

Fuel spending rose by 1.6%, marking the first increase in more than a year, largely driven by higher oil prices.

Discretionary spending growth also slowed to 1.1%, although spending on clothing and entertainment remained relatively resilient.

Confidence remains mixed

One of the more interesting parts of the data is the contrast in confidence levels.

Most people still feel relatively secure about their own household finances, but confidence in the wider UK and global economy has weakened.

At the same time, retail sales remained strong overall, increasing by 3.6% year on year, helped by higher food spending.

A practical view

None of this points to a sudden collapse in spending, but it does suggest households are becoming more selective.

Travel is often one of the first areas where people pause or cut back when costs feel uncertain, particularly when energy prices and inflation risks remain in the background.

For businesses, this matters because changes in consumer confidence tend to feed through gradually rather than all at once.

Final thought

The overall picture is still mixed.

People are continuing to spend, but there are growing signs that households are becoming more cautious about larger or less essential purchases.

As costs, inflation and global uncertainty continue to shift, confidence is likely to remain sensitive over the coming months.

If you’d like to talk through your finances or wider business planning, feel free to get in touch.