Consumer spending on travel is forecast to rise from £50.77bn to £52.85bn in 2023 despite the cost of living crisis, as consumers prioritise their disposable income for holidays and experiences.
The 2023 Spending and Saving Report: A forecast of the year ahead by VoucherCodes.co.uk, reveals that this year consumers are estimated to spend an additional £2.08bn on travel, including holidays and weekend breaks. As a result, consumers are expected to spend on average £943 per person on leisure, equivalent to £1,850 per household.
Whilst some of the rise in spend can be attributed to inflation, the report finds that two-thirds of people plan to spend the same or more on travel this year compared to last year (66%).
Unsurprisingly, August is forecast to be the most lucrative month for travel brands with 10.1% of all leisure spend expected to fall during this month, equating to £5.34bn. Over a quarter of leisure spending will take place in the summer months as this is the most popular time for consumers to go on holiday (28.9%).
Whilst consumers will be spending on travel over the coming year, many will be changing how they book their holidays to keep costs down. Over two-fifths plan to choose their destination based on where the best deals can be found (43%), and a further two-fifths plan to book their holidays well in advance to get the lowest prices (42.1%).
Maureen McDonagh, Managing Director and SVP International at VoucherCodes.co.uk, comments, “With the last few years being tough for everyone, consumers are choosing to spend their money purchasing holidays and having a trip to look forward to despite the cost of living crisis. The travel industry has experienced some tough years since the pandemic, so the boost in sales forecast in 2023 will undoubtedly be welcomed with open arms.
“However, with consumers’ budgets being squeezed, it comes as no surprise that many will be looking for ways to cut the cost of their holidays this year. We expect many consumers will book their holidays much earlier in the year, and that they will take advantage of sales and discounts to make their money go further.”