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AIB's Spend Trend survey shows lower hospitality spending

Spending in hotels slowed by 17% in October, AIB's Spend Trend survey shows
Spending in hotels slowed by 17% in October, AIB's Spend Trend survey shows

AIB's latst Spend Trend survey shows that spending in the hospitality sector fell in September as the summer holiday season came to a close.

The data was compiled from 70 million debit and credit card transactions in store and online during the month.

AIB's Spend Trend showed that hotel spending was down 17%, while spending in pubs slowed by 9% and restaurants saw a 5% dip in September.

The bank noted that these figures are in line with the same month last year.

AIB said that spending on electronics increased the most in the month, rising by 12%, which was likely driven by back to school and college spend.

The biggest increase in electronic spend was in Cavan, which recorded a 17% increase.

Similar to figures from Bank of Ireland last week, spending by AIB customers in France increased by 51% in September compared with the same month in 2022 because of Irish rugby fans visiting the country for the Rugby World Cup.

An extra detail in the September Spend Trend shows that while more rugby fans aged 25 to 34 made the journey to France, those aged 55 to 64 spent more money while they were there, accounting for 22% of the overall spend in France.

Meanwhile, the highest spending day for pubs here was September 23, as fans gathered in pubs to watch Ireland beat South Africa.

John Brennan, Head of SME Banking at AIB, said the summer holiday season may be over but there are other sectors experiencing increases in spend, with the biggest increase in electronics as students return to school and need new laptops, phones or other electronic devices.

"Spending in the hospitality sector is down as you would expect at this time of year, however younger people aged under 25 are still spending in pubs and restaurants and were the only age group to have an increase in spend in those sectors," Mr Brennan said.

He said that Irish rugby fans were out in force in France to support their country at the World Cup, addint that it was interesting to note that while younger people were there in bigger numbers, older people were spending more while on tour.

"Support was strong for the rugby team at home too - all of the highest spending days for pubs coincided with Ireland matches, with the highest one being Ireland versus South Africa," he said.

"These data insights are crucial in allowing us to continue to support both our business and personal customers in their choices," he added.