Irish Holiday Spending Stagnant Amid Rising Living Costs, ILCU Survey Finds
An ILCU survey shows Irish holiday spending is stagnant this summer due to rising living costs. Nearly half of consumers plan to spend the same or more, but many will cut back or forgo holidays entirely. Consumer sentiment rebounded in June, yet remains lower than at the year's start, impacting spending forecasts.
A new survey by the Irish League of Credit Unions (ILCU) indicates little strengthening in Irish holiday spending trends this summer, as cumulative living cost increases weigh on plans. Economist Austin Hughes, who compiled the report based on 1,000 adults, noted no pronounced trend strengthening in planned holiday spending through 2025 and 2026, despite some improvement from 2023.
Almost half of consumers expect to spend the same or more on their main holiday, unchanged from last year. However, one in six will cut back, and one in five cannot afford a holiday at all, reflecting Ireland's three-tier consumer economy: «the comfortable, the coping, and the clinging-on». Of those planning to spend more, just over half will increase spending by over 10%; similarly, over half of those cutting back will reduce spending by more than 10%.
Fifty-eight percent of consumers planning a holiday will go abroad, with 60% citing better weather as the reason. Overall consumer sentiment rebounded in June after a March-April dip, largely due to easing concerns about the Iran war's impact on energy prices. However, sentiment remains lower than at the start of the year. Both the ESRI and Central Bank of Ireland have lowered 2024 consumer spending forecasts due to expected elevated energy prices.