Deloitte forecasts holiday spending to drop

Deloitte forecasts holiday spending to drop

Spending on holidays in the current quarter will be “significantly below” the level seen last year, latest leisure consumer research warns.

The Deloitte report reveals consumers were still “feeling the pinch” in the first three months of 2018.

However, long holidays and short breaks saw the biggest increases in spend since the final three months of 2017.

The ‘Beast from the East’ winter cold spell “prompted consumers to dream of warmer days with more consumers booking and spending money on holidays”.

Holidays were described as continuing to be the “sweet spot” for consumers as spending was higher in the first quarter of 2018 than the same time last year.

But Deloitte said: “Although inflation is starting to ease and wages continue to gradually climb, consumers have reduced their spending on most leisure activities.

“Looking ahead, consumers have little intention to spend more in the coming months, leaving spending on holidays significantly below the level seen last year.”

The Deloitte report added: “Consumers plan to spend less money in almost all of the leisure categories in Q2 2018. Given that they have just spent money on their holidays, they have little intention to spend more in the coming months, leaving net spending on long breaks and short breaks significantly below the level seen last year.

“Consumers also plan to reduce their spending on all habitual leisure activities, with the exception of playing sports and attending live sports events.”

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