Consumers are on the hunt for deals this holiday season. Most will browse first in stores. They will turn to various online options. The 2023 holiday is no exception. According to PwC’s Holiday Outlook 2023, consumers will increase spending by 7% this year, allocating an average of USD 1,530 for gifts, travel, and entertainment. This travel boom will continue into winter, with travel-related spending increasing 12% over the 2022 holiday season.
Millennials are at the top of the holiday spending heap among generations, and Gen-Z consumers (17-25 years old) are expanding theirs. They will spend USD 1,275, 15% more than in 2022, the broadest percentage increase of any age gap. Gen-Z likes to browse for gift ideas in stores (67% vs 58% overall) and on social media (41% vs 31%). They also prefer social media for comparison shopping (34% vs 27%) and learning about sustainable companies (70% vs 51%). Mobile payment is their speed (35% vs 21%).
Women spend more on holidays. Female shoppers will spend 11% more this year than in 2022, continuing the trend of boosting the economy that they started over the summer with record-breaking attendance at movies and live concerts. They scout deals more than their male counterparts. They also care more deeply about price, free returns, convenience, and speed. While they buy gifts for others more than men do (49% vs 41%), they prefer receiving gift cards over all other options. In addition, 38% of women want gift cards this holiday vs 26% for physical gifts. However, women are not as brand-loyal as men (59% vs 67%). So, they are open to switching loyalties.
Home delivery dominates online shopping during holidays. Home delivery remains widely popular across generations. Meanwhile, in-store and curbside pickup have stabilized. Shoppers enjoy the certainty of knowing their orders will arrive as promised. Proof-of-delivery (83%), easy-to-tracking (80%), and flexible delivery times (68%) are priorities. For pickup, stores close to home and convenient curbside options matter. In addition, 40% of consumers are likely to switch brands if their items arrive late.
Millennials lead holiday traveling, with 63% planning to travel during holidays, followed by Gen-Z at 58%. More men than women (55% vs 43%) plan to travel and millennial men are slightly more than twice as likely to travel internationally (21%) as all travelers (10%). Online booking sites are popular with 45% of travelers and 58% of high-income millennials while booking directly with suppliers is preferred by 31% of travelers and 46% of high-income baby boomers.
Holiday travelers are embracing technologies from online booking to mobile check-in to biometrics. More than 60% are open to chatbot help. These big spenders (USD 2,562 total vs USD 1,530 for all consumers) are youthful (millennials 61% vs Gen-Z 58%). Over half will use online booking sites, while a third will go directly to providers. Almost 60% will redeem rewards to book travel, further underscoring the importance of loyalty programs. Branded hotels attract 46% of holiday travelers, while short-term rentals appeal to 22%. In addition, 58% of Gen-Z will travel this holiday season vs 47% of all consumers.
Article by: Asst. Prof. Suwan Juntiwasarakij, Ph.D., Senior Editor & MEGA Tech