The consumer spend will gain but experiences continue to weigh against product purchasing as the holiday season approaches, according to Deloitte’s annual Holiday Survey. Two-thirds of respondents stated that they plan to spend on travel or socializing outside their homes as part of their year-end festivities.
Consumers plan to spend an average of $391 on travel, hotels and restaurants, accounting for 26% of the approximately $1,500 they intend to devote to the holidays. The proportion rises to 40% when seasonal entertaining at home figures in. In direct comparison, consumers plan to devote about 40% of their holiday spending to travel, restaurants and related experiences outside the home, as well as in-home celebrations, 34% on gifts and 25% on a combination of clothing for themselves and their families and home and holiday decor. About 9% of total holiday retail spending will go to home furnishings and housewares, according to Deloitte, but the average spend, which represent dollars generated by the 36% of consumers who plan to purchase in the categories during the season, will be $280.
Deloitte pointed out that households earning $100,000 or more will generate 65% of total holiday dollars spent, while “high spenders,” those planning to spend $2,100 or more in the season, will account for 60% of the total.
Overall, given the survey results, the $1,500 figure represents a consumer intention to spend 4.5% to 5% more in the upcoming holiday season as compared to the last, Deloitte pointed out. The consulting firm anticipates e-commerce spending to gain by 14% to 18%. Respondents said they would spend 59% of their holiday budget online, compared with 36% in store, with 70% of smartphone users saying they expect to make a purchase using their devices versus 41% five years ago.
Other results from the survey suggest that people will exchange data for deals, as 61% of consumers said they were willing to provide personal information in exchange for promotions or discounts. Meanwhile, 81% of survey respondents said they expect promotions to influence them this holiday season with price discounts, at 74%, and free shipping, at 72%, deemed most attractive, well ahead of of BOGOs, at 39% and cash back, at 29%.
