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As Black Friday and Cyber Monday shopping events loom large, a shift in consumer behavior towards experience spending is evident. More Americans are actively seeking out and investing in unique experiences, contributing to a surge in venue revenues. Belinda Oakley, CEO of Sodexo Live! North America, sheds light on the hospitality space, emphasizing how consumers are willing to spend more when physically present at live events and stadiums.
According to JLL’s 2023 Holiday Shopping Survey, shoppers are expected to spend 13.8% less on gifts and traditional holiday merchandise. However, the data reveals a significant uptick in experience spending, with consumers allocating more resources to in-person events such as Taylor Swift’s Eras Tour concerts.
Belinda Oakley highlights the intriguing trend, noting that revenues in their venues have increased by nearly 7% to 8%. Surprisingly, this growth is not primarily driven by the cost of individual transactions but rather by the frequency of transactions. Consumers are expressing a desire to enhance their overall experience while attending events, resulting in more frequent visits.
Autonomous service styles are playing a pivotal role in driving increased throughput, allowing patrons to efficiently enjoy food and beverages without missing the main event. Oakley emphasizes that the average spending per transaction remains robust, showcasing a sustained interest in experiential consumption.
Addressing the evolving landscape, Oakley underscores the growing emphasis on live events among older demographics. Gen Z and millennials still value the live experience, with 58% considering it important. The pressure is on to understand the preferences of the next generation and cater to their evolving expectations.
Oakley observes that college sports experiences continue to draw enthusiastic spending from fans, displaying no signs of slowing. In response to a question about the biggest spenders, Oakley notes that consistent sports fans, influenced by team performance, tend to make economical choices. However, once-in-a-lifetime experiences like key concerts, including Taylor Swift’s shows, attract audiences willing to indulge in every aspect of the event without closely monitoring their budgets.
As the holiday season unfolds, the hospitality industry remains attuned to consumers’ evolving spending patterns and preferences for immersive experiences.
In a video transcript, Oakley also discusses the success of Taylor Swift’s concerts and the broader dynamics influencing consumer spending at live events. She mentions the impact of autonomous service styles on venue visits and the continuous effort to meet the changing expectations of different demographic groups, emphasizing the enduring appeal of live experiences.
The holiday season and upcoming events, such as the Super Bowl in 2025, are anticipated to further showcase the resilience and adaptability of the industry to consumer preferences.
In conclusion, Oakley expresses optimism about the future of experiential spending, acknowledging the unique and memorable nature of live events that captivate audiences and drive increased participation.
