Britons have significantly increased their spending on staycations and home improvements during the early May bank holiday, according to exclusive data from Mastercard obtained by This is Money. The Mastercard SpendingPulse insights reveal a notable surge in expenditure across various UK regions, indicating a strong preference for local travel and home enhancement projects.
Staycation Spending Soars
Staycation spending witnessed a remarkable upswing, particularly in popular destinations such as Dorset, Cornwall, and Devon. Data shows a 29% year-on-year increase in Dorset, a 24% rise in Cornwall, and a 13% uptick in Devon. London also saw an 11% increase in accommodation spending during the same period.
Shift Towards Experiences
The trend towards prioritizing experiences over material goods was evident, as retail sales dipped by 0.6% compared to the previous year. This shift reflects growing consumer confidence, which has reached its highest level since December 2021.
Increased Restaurant Expenditure
Dining out also saw a substantial rise in spending. In Dorset, restaurant expenditures surged by 33%, followed by a 9% increase in Cornwall and an 11% rise in Devon. London experienced a modest 1.6% year-on-year increase in restaurant spending.
Home Improvement Investments
Beyond travel and dining, Britons also allocated funds towards home improvements. There was a 3% increase in overall spending on home enhancements, with furniture and furnishings witnessing a 10% boost. Devon and Cornwall were highlighted as spring makeover hotspots, with spending on home furniture and furnishings rising by 25% and 17%, respectively.
Economic Insights
Natalia Lechmanova, Chief Economist Europe at Mastercard Economics Institute, commented on the trends: “As we approach the warmer months, people are leveraging the extra time off to explore different parts of the UK, dine out, and refresh their homes for the summer. We are observing a consistent trend of increased spending on experiences over material goods, driven by rising consumer confidence and purchasing power.”
Lechmanova also noted that the rise in discretionary spending on “things” could have a positive impact on the broader UK and European economies.
Inflation Trends
The latest data from the Office for National Statistics showed that the Consumer Prices Index rose by 2.3% in the year to April, down from 3.2% in the previous 12 months. The next set of official inflation figures is scheduled for release on June 19.
As Britons continue to invest in local travel and home improvements, these spending patterns highlight a broader economic trend towards experience-based consumption and increased consumer confidence.