In a revealing shift in consumer behaviour, Britons are increasingly choosing to invest in experiences rather than tangible goods. According to recent research conducted by Barclays*, there is a strong preference for spending on activities such as holidays, concerts, and sporting events. This trend highlights a significant transformation in consumer priorities, with £178 billion projected to be spent on experiences from June to September alone.
The Shift Towards Experiential Investments
The Barclays survey highlights that the average British consumer is expected to spend approximately £3,322 on experiences during the summer months. This expenditure is distributed across various activities, with a notable preference for travel and entertainment:
- Overseas Travel: Consumers are allocating around £906, making up the largest portion of their experiential budget.
- UK Getaways: Following closely, domestic trips are seeing an average spend of £615.
- Live Entertainment: Live shows are also a significant draw, with £435 spent on average.
- Sporting Events: Sports enthusiasts are expected to spend around £295.
- Seaside Visits: Trips to the seaside are anticipated to account for £143 of individual spending.
This trend is driven by a desire for memorable and engaging experiences, with 57% of respondents expressing a preference for experiential investments over purchasing physical items. Dr. Peter Brooks, Barclays’ chief behavioural scientist, notes, “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.”
Implications for the Hospitality and Leisure Industries
This pivot towards experiences presents a unique opportunity for businesses in the hospitality and leisure sectors. By understanding and adapting to these consumer preferences, businesses can enhance their offerings to better cater to the demand for high-quality, memorable experiences. Here’s how Capcon can assist businesses in leveraging this trend:
- Enhanced Customer Experiences: Through our mystery guest and auditing services, Capcon helps businesses refine their customer service to ensure that every interaction contributes to a memorable experience that encourages repeat visits.
- Optimised Operations: Our advanced stock control and inventory management solutions ensure that businesses can efficiently manage their resources, reducing waste and improving profitability, which is crucial in high-demand periods.
- Strategic Insights: With our bespoke business intelligence services, companies can gain a deeper understanding of market trends and consumer behaviour, enabling them to make informed decisions that align with customer desires.
As consumer spending habits continue to evolve, Capcon is dedicated to supporting businesses in the hospitality and leisure industries to not only adapt but thrive. By integrating our comprehensive suite of services, businesses can enhance their operational efficiency and capitalise on the increasing demand for enriching experiences.
To find out more about how Capcon can help your hospitality and leisure business maximise the opportunities presented by this shift towards experiential spending, contact us. Together, we can help you turn consumer trends into business success.
*Source: Making memories: the rise of the experience economy – Barclays. Published: 26 June 2024
