Holiday Gifting Trend: Inflation And Supply Concerns Drive Experiential Gift Giving
Written by: Melanie White, Virgin Experience Gifts
Holiday shopping is bound to look different for the 2022 season, with inflation on the rise, some items being in short supply and Americans looking for ways to avoid blowing their budgets. One trend, however, is expected to continue – experiences as gifts instead of material things.
Inflation to have a major impact on holiday buying
Nearly 9 out of 10 consumers expect inflation to have an impact on their holiday spending. The National Retail Federation announced in early October it expects holiday sales to rise between 6% and 8% from last year — but that rise doesn’t keep up with inflation, which has raised prices for goods and services by 8.2% in the past year, according to the latest numbers from the government.
Consumers say they’re still going to shop for the holidays, but they are splurging less on tangible items like clothing, houseware and electronics as they pay more for groceries and gas. Instead, gift givers are expected to stuff stockings with tickets, vouchers and gift cards for experiences, adventures and travel opportunities.
Americans want to experience more
A recent report from CNBC confirms the trend toward spending on experiences continues. Travel companies are seeing earnings increases, as well as activity-driven companies like ticket providers, theaters, dining and sporting events. A 2021 Sitecore Holiday Trends Report showed 71% of people say they don’t need more stuff and would prefer experience-based gifts.
After two years of being cooped up due to COVID precautions and restrictions, Americans are focusing more than ever on experiencing the world with friends and loved ones. According to Destination Analyst’s April 2022 report, 55.7% of American travelers want to visit places they have not been to before. Furthermore, 64.9% of Americans said that they would be “happy” or “very happy” to receive a travel-related gift for the holidays. And a GetYourGuide.com study revealed 62% of respondents prefer experiences over physical items when it comes to gifting.
Gas and travel prices fueling experiences closer to home
Couple that wanderlust with high gas prices and soaring flight fares, and experiences closer to home are topping many gift lists this season. Americans are purchasing concert or comedy seats, tickets for a big game, movie passes, dinner on the town, site seeing vouchers or one-of-a-kind adventures for the people on their list.
Blake Morgan, a customer experience futurist said in a recent Forbes article “If we thought the experience economy was here before, COVID expedited it even more so. Customers experienced that life is short, we don’t know what’s coming next. When faced with a decision to have an experience versus purchase a product, the customer will choose the experience.”
Experiences as gifts help to avoid supply-chain concerns
To add to the thirst for exploration, there are also lingering concerns about supply chain issues. According to Inmar’s 2022 Holiday Guide, 69% of consumers expect supply chain issues to continue into winter, making the products they need or want hard to find. With tickets and experiences, there’s no concern of whether there will be inventory close to the holidays.
The Square and Afterpay Festive Forecast reports gift cards will be the most popular gift to give for 2022. As Americans watch their wallets, they can choose a specific limit when selecting a gift card. The diversity in choices has also increased over the years, allowing gift cards to be a more customizable, thoughtful option than cash. A new holiday forecast from Blackhawk Network, a leader in global branded payments, found consumers plan to spend nearly half (46%) of their holiday budget on gift cards.
Between inflation, supply-chain concerns and overall shifts in American priorities, expect more experiences under holiday trees this year.
About Melanie White
Melanie White is the Executive Vice President of Virgin Experience Gifts. Melanie joined the team in 2015 and has held several positions within the business, contributing to rapid growth over the past seven years. Prior to her role at Virgin Experience Gifts, Melanie was a successful sales professional for BCBG Max Azria Group. Melanie graduated from Fordham University with a degree in business administration and holds a degree in fashion merchandising management from the Fashion Institute of Technology.
About Virgin Experience Gifts
Virgin Experience Gifts offers a wide range of fully vetted experiences to ensure thoughtful, creative gifts the recipient will love. Formerly Cloud 9 Living, the company was acquired in March 2021 and is now part of the Virgin family. Virgin has been a pioneer in the experience gifts category since 1988 and is currently the number one experience gift provider in the UK. The company joins a world-renowned family of brands including Virgin Hotels, Virgin Voyages, Virgin Hyperloop, Virgin Galactic, and Virgin Orbit. Visit Virgin Experience Gifts to find out more.
