The holiday season holds immense potential for businesses, making it crucial to understand the evolving seasonal spending trends. We collected valuable insights to help you plan your end-of-year strategy.
Based on a PWC holiday outlook survey of 4,000 respondents, the average consumer expenditure on gifts, travel, and entertainment is expected to reach US$1,638, a 7% rise from 2023 and a 15% increase from 2022. The data also reveals that:
- 29% plan to spend less, around $776, while
- 26% anticipate a higher expenditure, up to $3,076.
Income significantly impacts spending, with:
- 34% of individuals earning above $65,000 annually plan to spend more, compared to
- only 21% of those earning less.
Consumers are adopting budget-friendly alternatives:
- 45% are opting for resale or used products, a significant rise from 38% in 2023
- 35% are exploring rental programs, a substantial increase from 26% last year
Millennials and Gen Z are particularly interested in these sustainable shopping alternatives.
Though product safety and quality remain paramount:
- 64% of Gen Z and millennials are inclined towards gifts that support a cause, and
- 55% of consumers overall share this preference, reflecting a growing ethical concern in shopping habits.
Despite millennials leading holiday spending, the growth trends indicate a:
- 59% budget increase for Gen Z (ages 17-27)
- 22% increase for millennials (28-43)
- Contrasted by a 9% budget decrease for Gen X (44-59) and a 6% decrease for baby boomers (60-78)
Shopping habits also vary based on demographics:
- 45% of respondents prefer in-store shopping
- 66% of baby boomers lean towards physical store visits
However, millennials and Gen Z show a higher preference for mobile brand apps, suggesting a mix-mode shopping pattern.
The trend of self-gifting remains strong with:
- 32% of consumers overall,
- 37% of Gen Z,
- 29% of baby boomers, and around
- 50% of male shoppers taking part.
Expected to outspend women, men are predicted to spend, on average, $2,018, with:
- 58% buying footwear,
- 55% buying electronics,
- 51% buying video games, and
- 53% planning to travel.
Around 46% of consumers have holiday travel plans, with 56% aiming to stay with friends and family. Millennials are most inclined towards experience-based spending.
In payment preferences, the survey highlighted:
- 65% rely on debit cards,
- 58% prefer cash, and
- 55% use credit cards.
However, Gen Z and millennials are drawn to payment options like Venmo and ApplePay.
Beyond sales, the holiday season is about cultivating enduring relationships. A smooth holiday operation requires a capable team to manage digital transactions, address sustainability inquiries, and support charitable giving.
For a well-optimized holiday experience, consider business process outsourcing (BPO). It provides a customer experience (CX) that not only brings joy to your customers but also boosts your business.
