Mastercard: The ‘experience economy’ is booming in Europe

Nine out of ten travelers (88%) will spend the same or more money on experiences in 2024 compared to 2023. This is according to research by Mastercard, which examines the reasons why travelers prefer to spend on experiences, especially in a year full of global sports events, music artist tours and international film festivals in Europe.

The survey, conducted on a sample of more than 16,000 consumers, revealed that this year European and international visitors will focus on this type of spending.

It is worth noting that this trend is also confirmed by data from the Economic Institute of Mastercard, which reveals that the share of spending on experiences, such as travel or dining throughout Europe, will increase in 2023, reaching 22% in total costs, compared to 19 % in 2019, while the percentage of spending on material goods remains stable.

The research revealed that the top experiences people are looking forward to this year are related trips, followed by music events, outdoor experiences, culinary trips and health trips.

The reasons

Regarding the reasons why we focus on such an investment of money, the “intangible” benefit of experiences is mentioned as a key reason. Nearly 4 in 5 (78%) say these expenses are usually or always worth it, in stark contrast to the 4% who say they are rarely or never worth it. In fact, 29% of consumers prioritize saving money on experiences as part of their overall financial budget.

At the same time, 40% of respondents said that the experiences provided their best memories, with more than a third (35%) stating that they helped them see the world in a bag. -or light, and 33% support the shared experiences of others. especially enriching, whether it’s exploring a new destination, attending a cultural event, or simply enjoying a meal together. More than 4 in 10 (41%) say the uniqueness of an experience plays a key role in their decision to “invest” in it, highlighting the desire to create memories that last a lifetime.

This desire is driving travel, with 26% of consumers saying this is the main reason they travel and more than 4 in 10 (41%) saying they would travel to another country or continent just to experience a special experience that excites them.

Statements

Natalia Lechmanova, Chief Economist Europe, at Mastercard’s Economic Institute, commented: “Consumers have undoubtedly faced difficult choices when it comes to prioritizing their purchases in recent years. Nevertheless, the desire for meaningful experiences remains strong.

As the headwinds from high inflation and high interest rates gradually ease, consumers are likely to use their spending power on discretionary spending. The excitement generated by major events such as world sporting events, music artist tours and international film festivals taking place in Europe this year is likely to keep costs high.

Raja Rajamannar, Chief Marketing & Communications Officer at Mastercard, said: “It’s no wonder that Europeans value experiences like never before. Europe is home to a vibrant cultural heritage, unique sporting and musical events and unique venues that make it an ideal place for memories to last a lifetime.Our goal with Mastercard’s Priceless platform is to connect people with their passions, at creating stronger bonds every day, everywhere.

This research helps to understand what people will prioritize in 2024 and beyond, and how we can bring joy to their lives. Today, we offer countless valuable experiences in over 30 destinations around the world. As we kick off a big summer for Europe, we’re delivering some of the most exciting experiences in the world, including the UEFA Champions League Final , Cannes Film Festival, Open Golf Championship, hundreds of Live Nation concerts and more. .

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