In recent years, there has been a noticeable shift in consumer behaviour, with more people opting to invest in experiences rather than material goods. This trend is highlighted by recent findings from a Barclays survey*, which reveals that Brits are increasingly prioritising expenditures on experiences, such as holidays and live events.
According to the survey, consumers in the UK are expected to spend an astounding £178 billion on experiences from June to September alone. This surge in experiential spending underscores a broader, more profound change in consumer priorities, with individuals seeking more fulfilling and enriching life experiences.
Breakdown of Expenditures
The average spending per person on experiential activities this summer is projected to be £3,322. This spending is distributed across various activities, with overseas trips accounting for £906 and UK getaways £615 of the average expenditure. Additionally, live shows are expected to draw £435 per person, while sporting events and seaside trips are set to see spends of £295 and £143, respectively.
This trend is not just about spending more; it’s about spending differently. The Barclays survey found that 57% of respondents prefer to allocate their disposable income towards memorable experiences over purchasing physical items.
Psychological Insights
Dr. Peter Brooks, Barclays’ chief behavioural scientist, explains that this trend is part of a “long-term behavioural shift” in consumer habits. According to Dr. Brooks, activities such as travel and live entertainment are becoming increasingly significant in the allocation of discretionary spending. This shift is partly driven by a growing recognition of the value of experiences in enhancing personal happiness and well-being.
Implications for Businesses
This evolving consumer preference presents both challenges and opportunities for businesses. Companies in the travel, hospitality, and entertainment sectors may find growing demand for their offerings, while retailers of luxury and non-essential goods might need to rethink their strategies to appeal to this experience-oriented market.
How Beavis Morgan Can Help
At Beavis Morgan, we understand the nuances and implications of shifting consumer trends. For businesses looking to navigate these changes, our team offers expert advice and strategic insights to help you adapt and thrive in this evolving market. We can assist in refining business models, optimising marketing strategies, and enhancing customer engagement to capitalise on the growing demand for experiential spending.
Additionally, our expertise extends to helping businesses maximise their financial and operational efficiencies, ensuring that they can deliver exceptional experiences to their customers while maintaining profitability.
For more detailed guidance or to discuss how these trends may impact your business specifically, please contact your usual Beavis Morgan partner or email info@beavismorgan.com. Explore our services, including our R&D Tax Relief services, to discover how we can support your business in achieving a competitive edge in this experience-driven economy.
*Source: Making memories: the rise of the experience economy – Barclays. Published: 26 June 2024