As younger consumers seek meaningful in-person experiences, more are traveling to attend ticketed events and vacation spending is increasing.
According to a recent report from Allianz Partners, one in four U.S. consumers intend to “travel to attend a major pop culture event,” rising to 40% for those ages 18 to 34. Similarly, a survey conducted by AAA earlier this year found that the majority of Gen Z consumers have either flown for a live event or plan to do so.
These findings come as insights from PYMNTS Intelligence’s “New Reality Check: Paycheck to Paycheck Report” reveal that consumers with extra cash tend to prioritize spending on experiences, including recreation, leisure and entertainment. Additionally, retailers and brands such as Target, Groupon and Mattel are reflecting the consumer shift in spending towards experiences.
Take Taylor Swift’s billion-dollar Eraser tour, for example: According to the Associated Press, Americans announced that 20% of the tickets to the tour’s European debut arena in Paris, France, had been purchased by fans, and 10,000 Americans were expected to attend the Stockholm, Sweden show.
“They said, ‘Wait a minute, you can either spend $1,500 to go to a concert of your favorite artist in Miami, or you can use that $1,500 to buy a concert ticket, round-trip airfare and three nights in a hotel,'” Expedia spokeswoman Melanie Fish told the news agency at the time.
A new study from PYMNTS Intelligence, “The Last Deal: Family Spending Habits Reveal Retail and Travel Opportunities,” found that as of the May survey, households without children spent an average of $404 on travel services in the last month, compared to $293 for households with children.
The economic impact of large-scale events can reach far beyond ticket sales. Attendees typically spend money on lodging, meals, local transportation, and accompanying activities. Take restaurants, for example. According to the PYMNTS Intelligence Connected Dining series report, “Tracking the Impact of Digital Tools on Food Tourism and Travel Preferences,” three-quarters of consumers purchase meals at restaurants while on the go. Additionally, the same survey found that consumers are willing to spend money on fine dining experiences while traveling, with 36% citing food quality as the most important factor when dining at a restaurant while on vacation, compared to only 9% who cited affordability.
Retailers, especially those in high-demand locations or near event venues, can capitalize on increased foot traffic by offering targeted promotions and event-related merchandise. Take for example retailers like Lululemon and Adidas, who will be opening stores on the Champs-Élysées in the run up to the Olympics, according to WWD.
Ticketed events have firmly established themselves as a key driver of travel spending, reflecting a broader trend towards experience-based consumer behavior. As this trend develops further, it will shape the future of travel and retail, providing both opportunities and challenges for industry players.
View details on concerts, consumer spending, entertainment, trending news, Gen Z, Gen Z, news, PYMNTS News, restaurants, retail, ticketed events, tourism, travel, travel spending
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