Strong month for hospitality despite cost-of-living pressures as spending up 28%

AIB data also shows that spending in hotels and restaurants rose 12% and 7% respectively between May and June

Hotel spending rose by 12% in the same period along with restaurants, also up 7%, with the day of Dublin Pride bringing in the most consumer demand for hospitality. Photograph: Sam Boal / RollingNews.ie

Following a warm beginning to the summer months, consumer spending saw a sharp increase despite persistent cost-of-living pressures, with pubs, restaurants and bars all benefitting from greater demand and footfall.

The latest figures from AIB’s Spend Trend report show that, last month — the hottest June on record — spending in pubs rose by more than a quarter, increasing by 28% compared with May.

In addition, hotel spending rose by 12% in the same period along with restaurants, also up 7%, with the day of Pride bringing in the most consumer demand for hospitality.

With many planning holidays in advance, airline bookings fell by 6% from the previous month.

However, demand for travel has remained high despite price hikes, with the cost of package holidays up by 43% year-on-year, according to the Central Statistics Office.

At home, spending on hardware fell only marginally, with AIB noting that a significant rise in the previous month indicated people still enjoyed time in their homes and garden.

Compiling data from 70m transactions online and in-store, the report shows continued increases in grocery spending, up 3% compared with the previous month, with the use of the digital wallet and contactless payments rising by 9% and 4%, respectively.

Speaking on June’s Spend Trend findings, AIB head of SME banking John Brennan said: “Summer is typically a busy time for hospitality, and pubs are experiencing a strong start with a 28% increase in June.

“People are enjoying spending time at home and in the garden, as DIY and hardware spend continues to stay strong, despite a slight decline in June. This information is vital for businesses, enabling them to plan for peak and off-peak periods throughout the year and meet customers’ needs.”

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