Retailers have a new threat this holiday season: wanderlust.
Americans are returning to the skies, filling hotels, swarming theme parks — and they’re showing a willingness to spend more of their money on trips.
Source: Travel has edge over shopping this holiday season amid inflation
Consumers are seeking experiences more than collecting more stuff to store in their homes and garages.
There are many reasons this may be happening:
- The pandemic taught us life isn’t forever and continuously saving for a future that may never come may no longer be a good strategy
- Many missed visiting family, friends and destinations and are now eagerly and aggressively returning to travel.
This trend might also stop rapidly in 2023 as the economy falls into an economic recession. The Federal Reserve is raising interest rates to stop inflation – never in history have they achieved a “soft landing”. Instead, this always ends with a recession. And that may influence spending on travel in 2023.