Holidaymakers use winter months to plan and book holidays - as lifestyle spending soars, data reveals

Data from December 2024 to February 2025 shows a rise in winter lifestyle spending, which reached £683.6 million - up £15.8 million from the same period last year.

In comparison, non-essential spending for credit card customers soared to £1.6 billion, an increase of £194.6 million year-on-year. Despite a 6% decline in transaction volume for current account customers compared to the previous quarter (September-November 2024), the average spend per transaction rose by 14%.

Holiday spending soars

Despite Storm Éowyn disrupting the UK early in the year, Virgin Money customers were busy booking their getaways.

In January, current account customers splashed out £45 million on holidays - an eye-popping 74% increase from December.

Credit card customers weren't far behind, spending £172 million, up 52% from the month before.

Overall, holiday spending for the quarter reached £113.4 million for current account holders, up 10% (£10.2 million) from autumn 2024, and 6% (£6.7 million) more than last year.

Credit card customers spent £430.5 million, a 12% (£46 million) increase from autumn, and 14% (£53.7 million) more compared to last year.

The 18-25 age group led the charge, increasing their holiday spending by 20% (£1 million) from autumn.

It looks like younger generations are booking those last-minute winter sun holidays, eager to lock in summer plans for 2025.

Jet2 topped the list for current account holiday bookings at £17.1 million, followed by Tui at £14.2 million.

Loveholidays and Booking.com also saw big year-on-year growth, up 24% and 22%, respectively.

For credit card customers, Virgin Atlantic emerged as the holiday leader, with spending nearly double that of Tui.

UK 'staycations' take a back seat

While overseas holidays surged, UK holiday spending took a hit. It dropped by 13% (£6 million) compared to the previous quarter, as more customers opted for warmer destinations to escape the dreary winter months.

The over-65s were the biggest cutbacks in this category, reducing their spend by 20% (£2.6 million).

Wellbeing gifts in demand

Spending on wellbeing gifts spiked in the lead-up to Christmas, rising by 4% year-on-year - an extra £1.4 million.

December saw the highest spending, with £16.9 million on wellbeing gifts alone. Overall, winter spending in this category totaled £35.4 million.

Health and beauty spas saw the biggest boost, with £4.1 million spent, up 15% from last winter.

Rituals experienced a 61% surge in spending, likely thanks to their expanding high-street presence and the popularity of their luxury gift sets. The Perfume Shop led the charge, with £1.1 million in sales.

The over-65s focused more on wellbeing gifts this winter, increasing their spend by 9% (£0.6 million). The 56-65 age group, which spent the most overall, increased their spend by 8% (£0.6 million), reaching £8.6 million this quarter.

Style spending shifts to credit cards

When it came to style, credit card customers were feeling the festive spirit, spending £10.1 million more than last year. Total spending reached £93.5 million, with Next leading the pack at £10 million in sales. Meanwhile, current account holders spent £1.1 million less on style, a 1% decrease from last year. It seems people are using credit cards more for seasonal outfits and holiday gifts, spreading the cost of the festive season.

Fitness spending hits new highs

Fitness spending saw impressive growth this winter. Customers spent £1.4 million more on fitness products compared to autumn, a 3% rise. December saw the biggest spike, with £20.8 million spent—almost double the amount spent in January (£10.7 million). JD Sports emerged as the top retailer, with £6.6 million in sales, a 17% increase from last quarter.

The 26-35 age group spent the most, with a 4.7% increase (£0.3 million), followed by the 18-25 group at 4.1%. However, the 46-55 age group remained the biggest spenders, totaling £9 million in fitness-related purchases.

Dining out remains a top priority

Dining out remained a top priority for many during the festive season.

Current account and credit card customers spent £447.3 million on meals out, a 6.2% increase from last winter. December was the busiest month, with £179.7 million spent as people dined with friends and family.

Surprisingly, the 18-25 age group spent the least on dining out (£27 million), while the 56-65 age group spent the most (£59 million).

Andrew Carter, head of personal banking at Virgin Money, said: “Our customers spent more on lifestyle this winter compared to last year.

“Holiday spending was the biggest winner, showing that people are prioritizing shared experiences over material goods.

“At Virgin Money, we continue to offer tools and products that help customers manage their money, enabling them to enjoy both the present and the adventures ahead."