Despite the cost-of-living pressures, Virgin Money (LON:VM) customers have increased their spending on lifestyle categories this summer. Data from the bank revealed that overall spending across these categories rose by 11% from summer 2022 to reach £940.6 million between June and August 2023.
The lifestyle categories include holidays, UK stays, eating out, wellbeing, keeping fit, memberships and subscriptions, and entertainment. The number of transactions within these categories also saw a year-on-year increase of 6%, according to Virgin Money.
Eating out experienced a significant boost, with customers spending a collective £295.8 million during the summer months, marking an 11% rise compared to the same period in 2022. Holiday expenditures also surged by a third compared to last summer, totaling £129.5 million.
Meanwhile, despite mixed weather conditions, spending on UK-based staycations climbed by 10% compared to the spring quarter (March to May 2023), amounting to £5.3 million (GBP1 = USD1.2224) between June and August 2023.
Ruth Brougham, head of digital banking at Virgin Money, commented on the trend: “We’ve seen our customers choosing to prioritize their lifestyle spending to allow them to be more adventurous and enjoy exciting experiences over the past few months," she said.
At the same time, a OnePoll survey commissioned by Virgin Money in September revealed that over half (53%) of the 2,000 UK respondents are prioritizing saving over spending. However, 17% are prioritizing spending over saving.
Brougham added: “Despite the cost-of-living pressure, it’s reassuring to see that making memories continues to be important for people, and saving for a rainy day remains a high priority for many.”
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