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Fewer pandemic-related restrictions drove a strong recovery in gifting around experiences (i.e., travel, dining out, live events) in 2022, and new surveys show the experiential interest continuing to build two years later.
The 2024 Deloitte holiday retail survey of over 4,000 U.S. consumers found that spending on experiences this holiday season is expected to climb 16% year-over-year to an average of $735. That compares to the pandemic low of $465 in 2020 and is easily above the $539 average in the pre-pandemic 2019 year.
With Deloitte citing increasing demand for “party apparel and decorations” to support those experiences, spending on non-gift categories is expected to increase 9% year-over-year to $507, up from only $389 on average in 2019. Meanwhile, spending on gifts is expected to be down 3% year-over-year to $536 and up only 4.9% above the 2019 level of $511.
Among other surveys:
- TD Bank's 2024 Merry Money Survey of 2,000 U.S. shoppers found nearly half (45%) plan to gift experiences over physical items, with younger generations (Gen Z, 68%; millennials, 61%) leading the way. The trend is especially prominent among higher-income households, with 55% of individuals earning $100,000 or more choosing experiential gifts. Dining experiences topped the list at 53%.
- American Express' Amex Trendex survey of over 13,000 global consumers found 38% planning to gift an experience for their significant other, with 32% planning to do the same for their children. The top experiential gifts were found to be entertainment (59%), travel (54%), and food and drink (49%). Between friends, 69% preferred “to share a fun experience or trip over a traditional exchange.”
- JLL’s 2024 Holiday Shopping Survey found a 56% uptick in spending on holiday-related experiences and a 60% hike in spending on holiday food and decorations versus only a 10% increase in planned spending on gifts, “signaling that shoppers are embracing more than just physical goods this season.”
A wide range of pre-pandemic surveys and studies identified a shift toward “memories over materialism,” especially with millennials and Gen Zers.
A 2019 survey of 3,200 consumers globally from advertising agency Momentum Worldwide found that, at the time, 76% of respondents would rather spend their money on experiences than on material items. Among the respondents, 58% wanted to be part of an experience to escape from everyday life, 70% wanted an experience where they could laugh and have fun, and 63% wanted to be part of an experience where they learned something new. Consumers identified “inspiration and meaning” as the most sought-after quality in brands, a 200% increase from 2012 for this particular set of attributes.
“We've traced this shift in sentiment to the macro changes society has experienced over the past seven years including the rise of stress, a lack of trust in institutions and a feeling of disconnect caused by technology,” said Elena Klau, global chief strategy & product officer at Momentum Worldwide, at the time.
Several university studies have likewise concluded that experiential purchases bring more satisfaction than material ones. Researchers from the McCombs School of Business at The University of Texas found that experiences endure in people’s memories, while the perceived value of material goods weakens over time. Amit Kumar, assistant professor of marketing at McCombs School of Business, said in a Medium column, “They live on in our memories and in the stories we tell other people.”