Hospitality bucks December consumer spending trend

Spend dropped 1.0% overall, yet hotels, restaurants & bars boosted by 7.6% increase.

Visa’s UK Consumer Spending Index, compiled by IHS Markit, showed that overall expenditure continued to decline at the end of 2018. The -1.0% year-on-year reduction seen in December was the fastest seen since April, having accelerated from a -0.7% decline in November.

Looking over 2018 as a whole, expenditure has fallen in eight months of the year, underscoring a relatively weak overall picture of household spending. Lower expenditure was largely driven by a disappointing performance by the High Street, as Face-to-Face spending fell -1.6% on an annual basis in December.

This confidence in the currently resilient hospitality sector confirms previous reports of strong spending.

Speaking specifically about the sector’s spending increase from consumers, Adolfo Laurenti, European Principal Economist, Visa, commented:

“An acceleration in spending at hotels, restaurants and bars (+7.6% year-on-year) suggests that some categories of discretionary spending are holding up better than the market as a whole. And the modest pickup in ecommerce point to the resilience of digital channels of distribution, a favorable long-term trend that recent woes have not derailed.”