Consumer spending on airline travel during the month of May rose by 24%, following the lifting of international travel restrictions, however, the domestic hospitality sector saw spending fall in hotels (-8%) and pubs (-2%), while spending in restaurants stalled (+0.3%), according to AIB’s Spend Trend.
Details
With over €15 million more spent on airline travel in May than the month before, airline travel spending has seen a 268% increase when compared to May 2021, and a 1,102% increase when compared to the height of Covid-19 restrictions in May 2020.
The data was compiled from over one million card transactions by Irish consumers during May 2022 and has been anonymised and aggregated. All comparisons are based on May-versus-April data unless otherwise stated. Based on this data, AIB revealed that:
- overall, spending was up by 4% in May, compared to the previous month, as consumers spent almost €84 million a day throughout the month;
- digital wallet payments were up 7%, as consumers spent over €11 million a day using the technology – or one in every €8 spent during the month;
- Friday 27 May – the day after payday for most people – was the busiest day of the month for consumer spending; and
- electronics and grocery spend remained flat, at +0.6% and +0.47%, respectively, while clothing (+6%), hardware (+3%), homeware (+6%) and health & beauty (+7%) were all up.
Statement By AIB’s Head Of SME Banking
Speaking about the Spend Trend, AIB’s head of SME banking, John Brennan, stated, “As we enter the first summer with significantly reduced restrictions on travel, we are seeing Irish consumers take advantage of this opportunity. The hotel and pub trades saw a decrease in spending in May, but it should be noted that this reduction […] expected since the Easter break, which drives domestic demand, fell on the previous month. Spend in these sectors is still multiple times higher than it was during this time in 2021.
“Separately, overall consumer spending was up 4% in May, as consumer spending remains steady, with digital wallet payments up 7%, showing how increasingly popular the cashless payment method is becoming with consumers, now spending over €11 million a day by tapping their phones. This is equivalent to one in every €8 during the month being spent via a digital wallet.”
© 2022 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.
