After falling for two consecutive quarters, our data shows that overall net spending on leisure activities was up from -10.8% in Q1 2025 to -8.3% in Q2 2025. While the quarterly uplift is in part due to seasonality, including multiple bank holidays and some of the sunniest weather on record, it also points to consumers continuing to favour experiences over goods.

The quarterly improvement was driven by an increase in spending across 10 of the 11 leisure categories measured by the Deloitte Consumer Tracker, with the most significant increase in net spending around the long and short holiday categories with both increasing by 5.8 percentage points in Q2. The surge is consistent with findings from the latest Deloitte Travel Weekly Annual Insight Report 2025, which revealed that 59% of UK adults plan to take an overseas holiday this year, the highest level of intent since the survey began in 2011. Moreover, 53% of those travellers expect to spend more than in previous years, highlighting a sustained appetite for travel. Demand is particularly strong for all-inclusive packages and short breaks, with value for money remaining high on the list of priorities. 

Spending also increased across key hospitality categories as consumers embraced opportunities to socialise. Warmer weather and multiple bank holidays in Q2 2025 have contributed to an increase in net spending on eating out (+4.3 percentage points), drinking in pubs and bars (+3.7 percentage points), and drinking in coffee shops and sandwich shops (+2.2 percentage points). Another category that saw a notable uptick was betting and gaming (+2.5 percentage points). This could be attributed to the continued growth of regulated platforms and introduction of tighter consumer protection measures contributing to betting and gaming’s appeal.

There were also some improvements in areas of the leisure sector that relate to being active including increases in net spending on attending live sports (+1.5 percentage points) and going to the gym or playing sports (+1.1 percentage points). These improvements reflect consumers’ growing appeal for activities related to practising or watching sports.

The only category to see a decline in net spending was in-home leisure activity (-0.7 percentage points). While marginal, the dip reflects the shift towards outdoor and social leisure activities as weather conditions improved.

Outlook for Q3 2025

The leisure sector is expected to continue its recovery, driven by demand linked to seasonality and to improving economic conditions. Our data shows that consumers intend to spend more in Q3 across 8 out of the 11 categories measured in our Tracker. Consumers are expecting to increase their spending on eating out (+1.9 percentage points), drinking in coffee shops and sandwich shops (+1.9 percentage points), and drinking in pubs and bars (+1.6 percentage points). Such increases highlight expectations of the continued performance of sectors related to socialising. With consumers’ appetite for making the most of the summer period, there are also improvements in spending intentions in categories such as other leisure activities (+2.1 percentage points), in-home leisure activity (+1.6 percentage points), and attending live sports (+1.1 percentage points). The most notable decline is in the long holiday category (-4.5 percentage points) suggesting a cooling off of spending on travel following early summer holiday bookings. While the short holiday category is also expected to decline in Q3 (-1.3 percentage points), the drop is not as steep as for long holidays. This could indicate that while consumers may be cutting back on extended trips, there is a continued interest for shorter, flexible and more economical getaways.

Overall, Q3 2025 presents a positive outlook for leisure and hospitality businesses, but sustaining growth will depend on how well businesses can translate short-term demand into long-term engagement. Like many consumer sectors, the leisure and travel sectors are characterised by ongoing challenges, including reduced business travel and geopolitical tensions affecting international tourism. The sector's performance for the remainder of the year will likely depend on global economic conditions, geopolitical stability and the industry's ability to adapt to changing travel patterns. Although seasonal factors and economic tailwinds are driving recovery, businesses must show adaptability and resilience to deepen customer loyalty while futureproofing their offerings in an increasingly competitive and experience-led market. However, it is encouraging to see consumers’ appetite for experiences and travel remains strong.