Consumer spending on airlines increased 170% in January, according to AIB Spend Trend data.
Individuals over the age of 65 recorded the largest increase in airline spend, being up 256% on December, followed by individuals between the ages of 45 and 64, whose spending on airlines was up 241%, and all age groups recorded an increase in airline spending, with individuals between the ages of 25 and 34 recording the smallest increase, being up 87% on the previous month, according to AIB Spend Trend data.
The data was compiled from more than one million card transactions carried out by Irish consumers online during January of this year and has been anonymised and aggregated, according to AIB, which added that data provided by AIB features one of the most comprehensive and accurate data sets on consumer spending in Ireland, and that, based on this data, it can reveal the following information:
- overall, spend was down 15% in January compared to the previous month, with consumers spending an average of €73 million a day in January;
- spend on consumer goods was down, with clothing spend being down 48%, groceries being down 23%, electronics being down 33%, hardware being down 11%, homewares down 45%, and health and beauty being down 27% compared to December of 2021;
- spend in the hospitality sector was also down compared to December, with spend in pubs being down 24%, spend in being restaurants down 18% and spend in hotels being down 12%, and the only exception being the airline sector, which, as mentioned above, saw spending increase 170% based on the previous month;
- individuals between the ages of 45 and 54 recorded the biggest drop in spending in January, being down 17%, while individuals under the age of 25 recorded the smallest drop, being down 6%;
- and individuals from Roscommon recorded the biggest drop in spending in January, being down 18%, while individuals in Dublin recorded the smallest drop, being down 14%.
Statement By Head Of SME Banking At AIB
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Head of SME banking at AIB John Brennan stated, "January is traditionally a quiet month for consumers, having spent the month of December shopping for the Christmas break, buying clothes, presents and food. Combined with the temporary restrictions imposed, it is unsurprising to see a drop in spending across many sectors. However, January is also known for holiday planning and this is evident from the increase in spending with airlines, which is up 170% and is no doubt welcomed by the airline sector given the turbulent two years is has experienced. Travel has been severely restricted as a result of COVID and our insights clearly show that the Irish consumer is looking forward to the year ahead by planning holidays and short breaks. As we move forward and away from COVID restrictions, we would expect spending to pick up as consumers start to return to pre-pandemic behaviours in the coming months."
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