In the wake of the pandemic, consumer behavior has undergone significant shifts. One noteworthy trend that emerged was the phenomenon coined “revenge travel.” This term captured the pent-up demand for travel experiences pursued by consumers to make up for lost time and missed opportunities.
As we move further into the post-pandemic era, another trend seems to be taking hold: “event splurging.” This concept marks a shift in consumer spending patterns from simply traveling to indulging in meaningful events and experiences, and this trend has implications for brands.
Revenge Travel Wanes
Revenge travel gained popularity during the initial phases of recovery from the pandemic. It captured the enthusiasm people had to travel again, often making up for canceled trips or postponed plans.
For many, revenge travel was a form of emotional release and a way to regain a sense of normalcy after a long period of uncertainty and isolation. The travel industry responded with enticing offers to accommodate this surge in demand.
Interestingly, the latest report from the Financial Times indicates that the era of U.S. revenge travel has come to an end. Travel brands such as Marriott, Southwest, and Airbnb have noticed a decline in demand accompanying this shift.
The Rise of Event Splurging
As the world adjusts to ongoing changes and uncertainties, consumers are now showing a preference for shared, live events. Unlike revenge travel (which was driven by the need to catch up on missed opportunities), event splurging is about experiencing meaningful connections and creating memorable moments.
In the last year, this growing trend has encompassed a wide range of activities, and there are three categories in particular to continue to watch:
Music Festivals and Concerts. Attending live concerts that offer inspiring, multi-sensory experiences at larger-than-life stadiums.
- Taylor Swift’s Eras tour’s total U.S. economic impact is expected to exceed $10 billion
- Beyoncé’s Renaissance tour closed at $4.5 billion. For perspective, this tour generated about as much revenue as the 2008 Olympics did for Beijing
Live Sporting Events. Attending major sporting events across leagues to cheer on favorite teams and share in game-related festivities with other fans.
- Revenue from the sporting event ticket market in the U.S. surpassed $14 billion in 2022, and this figure is forecast to reach $15 billion in 2024
- Super Bowl LVIII (Chiefs vs. 49ers) generated $1 billion worth of spending in Las Vegas
Experiential Dining. Many restaurants now offer an immersive experience that goes well beyond just food for dinner. It is uncertain what future financial impact this trend will have on dining, but what is clear is that new offerings are appearing across the country, including:
- Blackout in Las Vegas offers diners an opportunity to eat a seven-course prix-fixe menu in the dark, claiming that the experience intensifies the other senses and increases enjoyment
- At Atmos Immersive Dining in Fort Lauderdale, the walls and even the table itself double as theater screens as 5-star chef-created dishes are served, while diners are transported virtually throughout the culinary journey
Implications for Brands
Today’s consumers are eager to connect with others and build community through shared experiences. Brands can differentiate themselves directly by offering unique and immersive experiences that go beyond traditional offerings, or they can do so indirectly by sponsoring events and building creative partnerships.
At Quantum Leap Insights, we not only partner with brands to create innovative offerings, we also provide measurable outcomes. Utilizing consumer data generated from events provides invaluable insights into consumer preferences and behaviors.
If you have an upcoming activation or strategic event partnership, give us a call. We would love to talk about how we can help your team leverage uncommon insights to maximize your strategy.