A shift in consumer spending habits is underway in the UK, with Britons prioritising experiences over material possessions this summer. A Barclays study suggests Britons will spend an average of £3,322 per person on experiences like holidays, concerts, and days out, totaling an estimated £178 billion across the nation.
The research highlights a growing desire for creating memories. Over half (57%) of respondents stated they’d rather spend money on experiences than possessions, a trend particularly strong among younger adults (18-34 year olds who expect to spend an average of £5,531). This preference aligns with Dr. Peter Brooks’, Chief Behavioural Scientist at Barclays, observation. Dr. Brooks suggests experiences, especially those shared with loved ones, create lasting memories that contribute more to happiness than material possessions.
Travel is a significant driver of this spending surge. The study indicates nearly half (£1,521) of the average summer spending will go towards holidays abroad and staycations. This aligns with data from Mastercard, revealing 63% of Britons plan to spend on travel and tourism this year.
Beyond travel, Britons are seeking a variety of experiences. Popular activities include live entertainment (£435), sporting events (£295), and seaside trips (£143). The study also found a significant portion (37%) plan to spend on wellness experiences, with theatre trips (30%) being another popular choice.
This shift in spending habits appears long-term. Barclays data shows annual spending on entertainment and travel has grown significantly compared to non-essential spending. Looking ahead, Natalia Lechmanova, Chief Economist for Europe at Mastercard Economics Institute, expects consumer spending on experiences to remain high, fueled by major events like sporting competitions and music tours.
