New research by 5WPR reveals a significant increase in consumer spending on travel and experiences in 2024.
According to a recent 5WPR consumer report, travel and experiences are now the third most splurge-worthy category for consumers this year.
The study surveyed over 2,000 consumers across the USA and showed a 7% increase in interest in travel and experiences compared to the previous year.
Among different age demographics, consumers under 44 are the most likely to plan on spending in this category. Specifically, 35 to 44-year-olds lead the way at 58%, followed closely by 25 to 34-year-olds at 54%. Even the youngest consumers, aged 16 to 24, are nearing the majority, with 49% expressing a tendency to splurge on travel and experiences.
“Travel and experiences are big-ticket items, so, unsurprisingly, consumers want to save when and where they can. The noticeable increase in interest, particularly from younger generations who are starting to spend more across various industries, underscores the value they see in travel and experiences.” commented Dara A. Busch, Co-CEO of 5WPR.
Looking at overall spending trends, consumers ranked travel and experiences as the third category where they spent most of their disposable income in 2023 (30%).
However, when asked to predict their 2024 spending, consumers rated this category as the top priority, where they believe they will allocate most of their income (41%).
Consumers under 34 are especially inclined to prioritize spending on travel and experiences this year.
What does this mean for shopping centers and retailers?
Shopping centers and retailers can leverage this information in several ways to capitalize on the rising consumer interest in travel and experiences:
1. Tailored Marketing Campaigns:
Develop targeted marketing campaigns highlighting travel-related promotions, vacation packages, or experiential offerings within the shopping center. Use demographic insights to tailor messaging to specific age groups showing the highest interest in travel.
2. Partnerships and Collaborations:
Collaborate with travel agencies, tour operators, and hospitality providers to create integrated promotions combining shopping incentives and travel experiences. This can include offering discounts or perks for travel bookings made through specific partners.
3. Event Planning:
Organize travel-themed events or workshops within the shopping center to engage customers and promote travel-related products and services. This could involve hosting travel expos, destination showcases, or cultural events.
4. In-Store Experience Enhancements:
Enhance the in-store experience by incorporating elements that evoke a sense of travel and adventure. This could include themed decor, interactive displays, or experiential zones that align with popular travel destinations.
5. Customer Loyalty Programs:
Integrate travel-related rewards and incentives into customer loyalty programs. Offer exclusive travel vouchers, discounts on vacation packages, or airline miles as rewards for shopping center patronage.
6. Collaborative Promotions with Retailers:
Encourage retailers within the shopping center to align their offerings with travel themes. This could involve showcasing travel-related merchandise or offering special promotions on travel essentials.
7. Digital Marketing Strategies:
Utilize digital marketing channels to reach consumers interested in travel and experiences. Leverage social media platforms and online advertising to promote travel-related offerings and engage with target audiences.
Key Takeaway
By leveraging consumer interest in travel and experiences, shopping centers and retailers can create unique and compelling experiences that resonate with customers.
This approach will increase foot traffic, enhance the overall customer experience, and strengthen the shopping centers’ positioning as a lifestyle destination.