Consumers are spending more money on experiences rather than goods. There is increased demand for concert tickets, sports event tickets, and museum exhibitions in addition to a post-pandemic spike in tourism.
Consumers are spending more money on experiences rather than goods. There is increased demand for concert tickets, sports event tickets, and museum exhibitions in addition to a post-pandemic spike in tourism. (Photo : by Glenn Carstens-Peters / Unsplash)
However, the cost of these experiences is rising, making even the most eager travelers' finances tight. It may cost forty dollars to see a little-known flamenco guitarist play at your local little club. Admission to many art museums is $30 or more. And a trip to a Major League Baseball game for a family of four typically costs $140, not counting parking and food.
One would anticipate that demand would decline as experiences were more expensive. But we're ready to pay up to this point.
Live Nation Entertainment LYV sold in 2023, the greatest year ever, with 620 million concert and event ticket sales. The highest-grossing concert tour ever is Taylor Swift's Eras Tour.
Costs are rising far faster than the current 3% rate of inflation in the United States, from restaurant charges to meditation retreat fees.
Similar to several advisors, Shores assists customers in creating a spending plan to pay for events. He works with them to finance several financial buckets, arranging high-priority necessities first, then desires, loves, and wishes.
Couples that disagree on how much to spend on experiences tend to have problems together, he adds. One of them may wish to go over their discretionary budget cap for concerts or excursions after paying for their non-discretionary costs (such as housing, food, taxes, and insurance), while the other may choose a more restrained strategy.
It can be difficult for even the most frugal people to manage their experience budget. Try purchasing a ticket for a live concert. You reluctantly agree to pay $65 for each ticket, only to discover that the total cost includes a service fee and other unforeseen expenses. More and more hotels are tacking on obligatory "resort fees," which you find out about only before you check out.
The conventional approach is to create a separate account for enjoyable activities, such as sports, travel, and the arts and culture. As part of a larger financial strategy, you set aside a portion of your salary for experiences and make regular deposits into this account.
Selectivity is crucial for people with little money to spend on experiences. Rate the relative value of a specific event against a range of comparable experiences on a scale from 1 to 10. This may influence how much you decide to spend.
You're more likely to believe that your money was well spent if you take a more deliberate approach and limit your experiences to those that provide you the greatest happiness and satisfaction.
