Rising cost of living starts to hit hospitality sector

By Restaurant

- Last updated on GMT

Rising cost of living starts to hit hospitality sector

Related tags Hospitality Barclaycard Pub & bar Hotel Inflation

The rising cost of living is starting to impact on the hospitality sector with a fall in spending in April, new data shows.

Consumer spending on nights out and takeaways dropped in April compared with the previous month, according to data from Barclaycard. Growth in fast-food and takeaways (77.9%) as well as bars, pubs, and clubs (39.2%) was lower than in March, when it was 79.6% and 41.7% respectively, the data shows.

The proportion of Brits feeling concerned about the impact of higher household bills on their finances remained high at 90%. Average spending on utilities per customer jumped 28.8% year-on-year, with optimism about the future of the UK economy falling slightly from 27% in March to 25% in April.

Despite the challenging economic backdrop, spending on non-essential items grew 18.4% compared to the same period in 2019, representing a small uplift from last month’s figure of 17.5%, says Barclaycard

Spending on hotels, resorts and accommodation rose 16.6% compared to three years ago, the category’s highest growth since September last year.

“The impact of rising living costs on consumer spending is starting to show, with a number of categories – including subscriptions, takeaways, and bars, pubs and clubs – seeing less growth than in March as Brits begin to feel the pinch,” says José Carvalho, head of consumer products at Barclaycard.

“However, the improvements seen by airlines and travel agents are particularly positive, and hopefully point to a recovery in spending on international travel later this year.

“While concerns around rising household bills may continue to hamper spending on non-essential items, the upcoming Platinum Jubilee Weekend and summer months should provide opportunities for Brits to spend on celebrations and make the most of warmer weather.”

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