Spending soars in hospitality and cinema sectors

Spending at cinemas surged by 1,351% compared to May, new figures from Revolut show today

People raced back to cinemas and outdoor hospitality in June, with spending at the movies up a huge 1,351% compared to May, new figures show today.

The latest Revolut report for June also shows that spending in bars was up by 293% on a monthly basis, while spending in hotels was up 148% and spending at tourist attractions was up by 149%.

The report also noted that restaurant spending among Revolut’s 1.5 million Irish customers was also up 50% compared to May.

Outdoor dining and cinemas reopened from Covid restrictions on June 7, while hotels had reopened five days earlier on June 2.

Revolut said that while leisure spending was up across all age groups, there were also some indications of a “vaccine bounce” for hospitality.

Spending in bars increased by 285% among the 55-plus age group, as compared to 235% in the 35-54 category, while in restaurants, the 55-plus age group saw spending increase by 47%, compared to 38% in the 35-54 bracket.

The 55-plus age group saw spending on hotels increase by 260%, compared to a rise of 206% among the 35-54 age bracket, it added.

Meanwhile, overall spending on airlines, which had surged in May, increased by another 36% in June. Consumers also spent more at duty free stores (up 30%) and at other airport retailers (up 27%).

Overall spending by Revolut users increased by 6% in June compared to May, but the financial technology company also said that many other categories saw a drop in spending last month.

Areas of discretionary spending around the home saw large reductions with spending at florists down 17% while spending at household appliance stores fell 17% and spending at home furnishings stores was 9% lower.

Spend on clothing also dipped from its reopening surge and sportswear spending was down by -12% compared to May, while general clothing expenditure was -5% lower.

As consumers chose to eat and drink out more, spending in supermarkets fell by 7% and in off-licences by 12%, today’s figures show.

Spending also moved further away from online and in June, just 34% of Revolut customers’ spending was on the internet, compared to 41% in May and over 50% last November.

Commenting on today’s report Sebastian Hamilton, Head of Public Affairs at Revolut Ireland, said that outdoor dining has proved very popular with Irish consumers – as has the return of cinemas.

“People clearly wanted to get out of their homes and enjoy the experiences that we all took for granted before the pandemic. There was also a further monthly increase in spending on travel and in airports, despite ongoing restrictions,” he noted.

“What’s also notable, though, is that at the same time as they were spending at restaurants, bars and cinemas, consumers were cutting back somewhat in other areas. Clothes shopping, DIY and garden expenditure all fell over the period,” he said.

“We know that the public have saved billions of euros during the pandemic: what policy-makers want to know is whether they will spend that money as society reopens further, or whether they will prove more cautious, and perhaps invest what they’ve saved rather than indulging in a major spending splurge. This latest data may provide some insights into that question,” he added.

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