As young consumers look for meaningful, in-person experiences, more are traveling for ticketed events, driving vacation spending.
A recent report from Allianz Partners found that 1 in 4 U.S. consumers intends to “travel to a destination to attend a major pop culture event,” and that share rises to 40% for those ages 18 to 34. Similarly, a study earlier this year from AAA found that the majority of Gen Z consumers either have traveled by plane for live events or plan to do so.
These findings come as insights from PYMNTS Intelligence’s “New Reality Check: The Paycheck-to-Paycheck Report” reveal that consumers with cash to burn tend to prioritize spending on experiences such as recreation, leisure and entertainment. Plus, retailers and brands such as Target, Groupon and Mattel echo that consumers are shifting their spending towards experiences.
Take, for instance, Taylor Swift’s billion-dollar Eras Tour. The arena in Paris, France that hosted the tour’s first show in Europe stated that Americans bought 20% of the tickets, per the Associated Press, and the Stockholm, Sweden show anticipated 10,000 U.S. attendees.
“They said, ‘Wait a minute, I can either spend $1,500 to go see my favorite artist in Miami, or I can take that $1,500 and buy a concert ticket, a round-trip plane ticket, and three nights in a hotel room,” Melanie Fish, an Expedia spokesperson, told the news agency at the time.
A new PYMNTS Intelligence study, “The Last Transaction: Family Spending Habits Reveal Merchant Opportunities in Retail and Travel,” found that, as of the May survey, households without children had spent an average of $404 on travel services in the last month. Meanwhile, those with children had spent $293.
The economic footprint of major events can extend well beyond ticket sales. Attendees typically spend on accommodations, dining, local transportation, and ancillary activities. Take, for instance, restaurants. The “Tracking the Impact of Digital Tools on Food Tourism and Travel Preferences” edition of the PYMNTS Intelligence Connected Dining series of reports found that three-quarters of consumers purchase meals from restaurants while away from home. Plus, the same study found that consumers are willing to splurge on premium dining experiences while traveling, with 36% considering food quality as the most important feature of a restaurant meal when they are on vacation, versus just 9% that said the same of affordability.
For retailers, particularly 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 instance, all the retailers opening stores on the Avenue des Champs-Élysées in the leadup to the Olympics, such as Lululemon and Adidas, per WWD.
Ticketed events have firmly established themselves as key drivers of travel spending, reflecting a broader trend towards experience-based consumer behavior. As this trend continues to develop, it will shape the future of travel and retail, presenting both opportunities and challenges for industry stakeholders.
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