New data1 from Virgin Money reveals that customers have been using the winter period to plan ahead and book in holidays for 2025, with spend on holidays being the top priority over winter, followed by spend on wellbeing.
The latest analysis, covering the period between December 2024 and February 2025, shows winter lifestyle2 spending for current account customers rose to £683.6 million, an increase of £15.8 million (2%) compared to the same period last year. Meanwhile, non-essential spending for credit card customers surged to £1.6 billion, an increase of £194.6 million (13%) compared to last winter.
Despite a 6% decline in the number of transactions for current account customers compared to the previous quarter (September-November 2024), the average spend per transaction increased by 14%.
Overseas holiday spend soars
While Storm Éowyn was causing widespread disruption and damage across the UK3 at the start of the year, Virgin Money customers were spurred on to hunt for holiday bookings. In January alone, current account customers spent £45 million on holidays, an increase of 74% compared to December, while credit card customers spent £172 million, a 52% increase compared to December - showing that spending in this area continues to be a priority for Brits, as they book in holidays for the rest of 2025 and beyond.
Holiday spending for the quarter reached £113.4 million for current account customers, a 10% (£10.2 million) increase from autumn 2024 and a 6% (£6.7 million) rise year-on-year. For credit card customers, holiday spending totalled £430.5 million, up 12% (£46 million) from autumn and a 14% (£53.7 million) increase from last year.
The 18-25 current account customer age group demonstrated their eagerness to get their 2025 summer plans underway, increasing their holiday spending by 20% (£1 million) compared to autumn, the highest increase among all age groups. They were followed by the 26-35 and 36-45 age groups, both of which increased their spending by 13%. This trend suggests that younger generations are keen for last-minute winter sun breaks and are taking advantage of January holiday deals for the summer.
Jet2 led the holiday spending for current account customers this quarter with £17.1 million, closely followed by Tui at £14.2 million. Loveholidays and Booking.com had the largest year-on-year percentage increases, with Loveholidays up by 24% and Booking.com by 22%.
For credit card customers, Virgin Atlantic emerged as the top holiday choice this winter, with spending for the quarter almost double that of second placed Tui.
UK holidays see spending decline
Spending on UK holidays experienced the most significant percentage decrease by current account customers, down by 13% (£6 million) quarter-on-quarter. This shift highlights a preference for overseas holidays, likely driven by the desire for warmer weather and more exotic destinations during the dark and rainy winter days. The over 65s made the most significant cuts in this category, reducing their expenditure by 20% (-£2.6 million).
Wellbeing gifts for Christmas on the rise
With Christmas round the corner, wellbeing spending saw a significant increase by current account customers, rising by 4% year-on-year, an additional £1.4 million. Likely driven by buying Christmas gifts for loved ones, December was the peak month for wellbeing expenditure, with £16.9 million spent, contributing to a winter total of £35.4 million. Notably, £4.1 million of that was spent on health and beauty spas, an uplift of 15% compared to last winter.
The Perfume Shop took the top spot for wellbeing gift spending this quarter, with £1.1 million spent. Meanwhile, Rituals also saw a remarkable 61% increase in spending compared to the same period last year, likely driven by their growing high-street presence in the UK4 and the appeal of their luxury gift sets as Christmas presents.
The over 65s are focusing more on buying these type of gifts than last year, with a 9% increase (£0.6 million) in spending. The 56-65 age group followed closely with an 8% increase (£0.6 million), and this age group also spent the most on wellbeing gifts this quarter, totalling £8.6 million.
£10 million extra spent on style
As the party season kicked off, credit card customers ramped up their spending on style. Style related purchases rose by 12%, an additional £10.1 million year-on-year. The total spend on style over winter was £93.5 million, with Next leading the way among retailers, with £10 million in sales.
In contrast, current account customers spent less on style this winter, with a decrease of £1.1 million (1%) compared to the same period last year. The shift in spending behaviour suggests people are using their credit cards more for seasonal outfits and for buying style related Christmas gifts, allowing consumers to spread out their payments, making it easier to manage an expensive time of year.
Fitness spending sees significant growth
With ever increasing research highlighting the positive impact of fitness on both physical and mental health, fitness expenditure by current account customers rose by 3% (£1.4 million) over winter compared to autumn. December was the peak month for fitness spending, at £20.8 million, nearly double the amount spent in January (£10.7m) - likely reflecting a combination of Christmas gift purchases and New Year's resolutions, with JD Sports coming out as the top retailer with £6.6 million spend, an increase of 17% compared to last quarter.
The 26-35 age group increased their spending by 4.7% (£0.3 million) compared to the previous quarter. They were followed by the 18-25 age group, which saw a 4.1% increase (£0.1 million) in winter. However, it’s the 46-55 age group that were the biggest spenders here, making £9m worth of transactions in this category during winter.
Festive feasts out or homeward bound?
This festive season had a significant impact on dining out, with spend in this category by current account and credit card customers totalling £447.3 million this winter, an increase of 6.2% (£26.2 million) compared to last year.
December was the busiest month for dining out for both current account and credit card holders, with £179.7 million spent as people enjoyed meals with friends and family.
Interestingly, current account customers in the 18-25 age group chose to spend the least on eating out this quarter (£27 million) while 56-65 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 saw a significant rise following a winter marked by weather disruptions, making it the fastest-growing lifestyle category, signalling customers are prioritising shared experiences with friends and family over material goods.
“At Virgin Money, we continue to provide the tools and products our customers need to manage their money in a way that works for them, enabling them to enjoy both immediate pleasures and future adventures."
To find out more about Virgin Money’s products and services, visit: www.virginmoney.com.
Notes to Editors
1 Customer spend data sourced from Virgin Money current account and credit card customers who have actively spent in one or more of the lifestyle categories between December 2024 and February 2025.
2 Lifestyle categories include eating out, holidays, style, wellbeing, keeping fit, memberships and subscriptions, staying away, and entertainment.
4 Beauty brand Rituals set for UK expansion Link opens in a new window