The hotel sector was one of the only sectors in Ireland to record an increase in spending in July, according to the latest AIB Spend Trend report.
The data was compiled from 70 million debit and credit card transactions in store and online during July 2023 and has been anonymised and aggregated.
'Important Time'
The report shows the highest increase was by customers from neighbouring counties Monaghan and Cavan (12%). The only counties that saw a decrease in customer spending in hotels were Carlow, Meath and Mayo.
"The strong performance by the hotel sector despite the weather is positive, as the summer months are an important time for the industry," said John Brennan, head of SME Banking at AIB.
Cheaper Dining Options
Spending in fast food restaurants increased 7% year on year compared to a 3% increase in hotels and restaurants, AIB suggests this is due to people choosing cheaper dining options.
Spending online increased by 17% year on year, far outstripping the rate of inflation.
Pub Spending Falls
Spending in pubs and off licences was down (-2%) overall, despite the fact that there were five weekends in July.
The decline was highest among customers in Cork (-5%), while customers from neighbouring county Kerry recorded an 8% increase, AIB suggested this was likely driven by Kerry’s run to the All-Ireland Football Final.
'Important Trend'
"The impact of inflation can be seen through the year-on-year increase in fast food restaurant spend versus spend in restaurants and hotels, while the significant increase in spending online in July 2023 compared to July 2022 is an important trend for businesses to be aware of and responsive to, as more and more customers choose to transact digitally,” said Brennan.
