Seven in 10 people plan to spend on leisure travel in the next month - Deloitte Report

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Seven in 10 people plan to spend on leisure travel in the next month - Deloitte Report

10% jump month-on-month on this discretionary spend

After two years of restricted summer travel, it appears holidays and breaks away - both domestic and foreign - are very on the rise again among the Irish public. Deloitte’s latest State of the Consumer Tracker shows that 71% of those surveyed plan to spend on leisure travel in the next four weeks alone.

Across the summer - over the next three months, - 67% of people (up 4% month-on-month) plan to stay in a hotel while 44% (up 4%) will stay in, or rent private accommodation. Those planning to take an international flight is up 5% to 53%, and Ireland as a country is 21% ahead of the global average of 32% - in terms of wanting to jet away.

Deloitte’s State of the Consumer Tracker is a monthly survey which tracks consumers’ attitudes towards personal wellbeing, financial concerns, travel and hospitality, transport, and retail. The results are based on a survey of over 20,000 consumers across 23 countries (1,000 Irish consumers). The most recent data was gathered between May 26th and June 1st last.

Commenting on the latest results, Daniel Murray, Partner and Head of Consumer at Deloitte Ireland said: “While concerns about inflation, the cost of everyday items and the Ukraine war are still key concerns for the Irish public, there is a sense that people feel they need – and have earned – a break away to switch off and enjoy themselves. Holidays are perceived as a priority, where affordable, for a significant majority of those surveyed.”

Ireland remains the third most concerned nation regarding inflation in the tracker, at 84% (down 1%; global avg. 76%). Six in 10 people are also either moderately or extremely concerned that the current conflict between Russia and Ukraine will impact their everyday lives.

“We are beginning to see somewhat of a levelling off or plateauing around financial concerns as people reluctantly accept that the conflict in Ukraine is not about to end any time soon, and prices are likely to continue climbing for fuel and staples like bread and pasta. Last month’s inflation rate was 7.8% in Ireland, but the European Central Bank have now announced at least one interest rate hike in a bid to counteract this.”

Consumer confidence & spending intent

The average spend has increased to €2,663, up €267 month-on-month, and the tracker has shown significant variations in this figure in the last three months. Spending on both less - and more - discretionary items has increased, by €109 and €165 respectively. Planned spend by category over the next four weeks has remained very stable, with housing continuing to be the largest spend at 20% (down 2%).

Over a quarter of those surveyed are concerned about making an upcoming payment, up 2% to 28% in the last month. There is no change month-on-month in the number of people delaying their spend on a large purchase (52%) while the amount of those who are optimistic that the financial situation will improve in the next three years has dropped by 3%, to 41%.

More than half of people (54% - down 2%) are concerned about the amount of money they have saved, while 46% of consumers report spending more to enjoy today, 4% above the global average of 42%.

The percentage of consumers perceiving higher prices relative to the previous month, for various products and services include a jump of 8% - to 61% - in those who think clothing and apparel has risen, while one-in-five of those surveyed believe personal care services and goods have also increased in price.

Travel & Hospitality

Almost half of consumers (47%) reported they would likely travel for business in next three months, but 71% feel that technology has not replaced the travel that they might normally do. One third of those surveyed who had travelled for business recently, were attending a conference.

The motivations meanwhile for visiting a leisure destination include attractive activities (31%), a deal on airfares (40%) and an ability to reach the destination by direct flight (53%).

Impact of War

Nine in ten people surveyed believe that the war in Ukraine has had an impact on the prices they are now paying for increased utility bills, and the same number believe it is responsible for soaring fuel prices. Four in ten of those surveyed said the war and its knock-on effect on the supply chain and increasing prices, has caused them to delay a large purchase they would otherwise have made.

About the State of the Consumer Tracker

This monthly study is fielded using an online panel where consumers 18 years of age and older are invited to complete the survey (translated into local languages) via email. It is fielded in 23 countries (targeting 1,000 respondents per country/wave). The survey field period was 26 May to June 3, 2022.

About Deloitte

At Deloitte, we make an impact that matters for our clients, our people, our profession, and in the wider society by delivering the solutions and insights they need to address their most complex business challenges. As the largest global professional services and consulting network, with over 345,000 professionals in more than 150 countries and territories, we bring world-class capabilities and high-quality services to our clients. In Ireland, Deloitte has approximately 3,000 people providing audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. Our people have the leadership capabilities, experience and insight to collaborate with clients so they can move forward with confidence.

Article Published: 14/06/2022