Spending on travel continuing to outpace other non-essentials – Barclays

Dr Peter Brooks, Barclays’ chief behavioural scientist, said: “We’re witnessing a long-term behavioural shift that will see experiences like travel and live entertainment take up a greater share of our discretionary spending, certainly this summer but also into the foreseeable future.

“The excitement of buying new furniture, a TV or smartphone tends to disappear relatively quickly as those items get normalised into our everyday lives.

"However, the memories created from spending on experiences, especially when it’s with family or friends, has been linked to longer-term boosts to happiness as the memories created live on when we reminisce about those shared moments.”

’Notable shift’

Barclays’ All To Play For: Winning With Experience report also found 90% of consumer-facing businesses believe demand for memorable experiences is growing faster than demand for physical products, while 91% observed consumers were still prioritising spending on memorable experiences “even when money is tight”. 

The research found 57% of consumers would rather spend money on a good experience than on material possessions, up five percentage points from 2018. Nearly two thirds (63%) would rather tell people about something they have experienced rather than something they have bought. Similarly, 44% were seeking new and unique experiences to make the most of the summer – a figure that rose to 61% for 18 to 34-year-olds.

Sam Miley, CEBR managing economist and forecasting lead, added: “Since the pandemic, there has been a notable shift in consumer preferences away from goods and towards services. This has brought considerable benefit to the experience economy, which is now far larger than its pre-Covid size.  

“Such benefits are not expected to be short-lived. The experience economy is projected to expand at a faster rate than the economy as a whole in the coming years, making a significant contribution to overall growth.”