Entertainment, Travel Expenditures on the Rise

by | 2 minute read

One way to tell that the econ­o­my is get­ting back on track is to look at the types of con­sumer expen­di­tures being made. Mintel’s Amer­i­can Lifestyles 2014 report indi­cates that U.S. adults are spend­ing again near­ly at pre-reces­sion lev­els. The real opti­mism in this report is all about what con­sumers are buy­ing. The healthy growth in nonessen­tial pur­chas­es should give mar­keters hope for sus­tained sales increas­es.

For starters, Mintel ana­lysts believe that con­sumer spend­ing will rise 3.6% this year which is sig­nif­i­cant­ly more than the expect­ed infla­tion rate. Sev­er­al cat­e­gories expe­ri­enced sig­nif­i­cant growth rates last year and ana­lysts believe the sales boom will con­tin­ue over the next 5 years for:

  • Leisure and enter­tain­ment (+28.5%)
  • Vaca­tions and tourism (+27.3%)
  • Tech­nol­o­gy and com­mu­ni­ca­tions (+25.2%)
  • Alco­hol on premis­es (+23.7%)

The pur­chase intent for vaca­tions has jumped in the past year, sig­nal­ing a stronger econ­o­my, and ana­lysts pre­dict the val­ue of the vaca­tion and tourism mar­ket will reach $282.4 bil­lion by 2018.

The Baby Boomers, who will be mov­ing in larg­er num­bers into their retire­ment years, will be part of the dri­ving force for this spend­ing. These con­sumers will also have more time to devote to enter­tain­ment and leisure. While the mar­ket for CE devices may be some­what sat­u­rat­ed, the appetite for con­tent , espe­cial­ly stream­ing media and video-on-demand will rise.

Baby Boomers are like­ly to make self-improve­ment an area of inter­est this year as well. 88% of all con­sumers put a health­i­er diet at the top of the list for self-improve­ment this year. 87% said the same about exer­cis­ing and 88% plan to enjoy more fam­i­ly time.

As we move through the sum­mer, enter­tain­ment mar­keters such as amuse­ment parks may want to tar­get con­sumers who have extra mon­ey to spend and want to enjoy more fam­i­ly time with their recre­ation bud­gets.  Audi­enceS­CAN finds that 23.4% of all U.S. adults intend to vis­it an amuse­ment or theme park in the next year. 60% of these con­sumers are under the age of 45. They are also far more like­ly than aver­age to take a trip to the zoo this year, so amuse­ment parks locat­ed near zoos may want to explore a joint pro­mo­tion.  Con­sumers in this audi­ence are 30% more like­ly than aver­age to have tak­en action as the result of an ad they’ve seen at a movie the­ater.

Audi­enceS­CAN data is avail­able as part of a sub­scrip­tion to AdMall for Agen­cies. Media com­pa­nies can access Audi­enceS­CAN data through the Audi­ence Intel­li­gence Reports in AdMall.

Kathy Crosett
Kathy is the Vice Pres­i­dent of Research for Sales­Fu­el. She holds a Mas­ters in Busi­ness Admin­is­tra­tion from the Uni­ver­si­ty of Ver­mont and over­sees a staff of researchers, writ­ers and con­tent providers for Sales­Fu­el. Pre­vi­ous­ly, she was co-own­er of sev­er­al small busi­ness­es in the health care ser­vices sec­tor.