Regularly topping the charts as the region with the highest number of international tourist arrivals worldwide, Europe attracted a whopping 700 million tourists in 2023. And according to the new Mastercard survey of over 16,000 consumers, this year Europeans and international visitors alike are set to prioritise spend on experiences, with almost 9 in 10 people (88%) saying they plan to spend the same, or more, on experiences in 2024, compared to 2023.
Raja Rajamannar, Chief Marketing & Communications Officer, Mastercard says: “It's no wonder that Europeans are prioritizing experiences like never before. The region is home to a vibrant cultural heritage, unparalleled sports and music events and incredible venues that makes it an ideal backdrop to memories that last a lifetime. Our goal with Priceless is to connect people to their passions, their purpose and each other – every day, everywhere. This research helps to inform what people are prioritizing in 2024 and beyond, and how we can best bring joy to their lives. Today, we offer countless Priceless Experiences across 30+ destinations globally. As we gear up to a big summer for Europe, this will include access to some of the world's most exciting experiences, including UEFA Champions League Final, Cannes Film Festival, The Open, hundreds of Live Nation concerts, and many more.”
The trend towards prioritising spend on experiences over ‘things' is one that is supported by data from the Mastercard Economic Institute, which reveals that the share of spending on experiences such as travel or dining out across Europe increased in 2023 to 22% of total spending, from 19% in 2019. In comparison, the share of spend on material goods remained stable.
Natalia Lechmanova, Chief Economist Europe, at Mastercard Economics Institute, comments: “Consumers have undoubtedly faced challenging choices in prioritising their spending over the past few years. Despite this, the desire for meaningful experiences remains resilient. As headwinds from high inflation and high interest rates gradually recede, consumers are likely to deploy their stronger purchasing power on discretionary spending. Excitement driven by prominent events such as global sporting competitions, music artist tours, and international film festivals coming to Europe this year will likely keep the spend on experiences high.”
The survey reveals that the top experiences that people are most looking forward to this year are travel related, followed by live music events, outdoor experiences, culinary trips and wellness escapes.
When it comes to why this prioritisation of spending on experiences is happening, the ‘intangible' benefit it brings is cited as a key driver. Nearly 4 in 5 (78%) said spending on experiences is usually, or always, worth it, in stark contrast to the 4% who find it rarely or never worth the investment and 29% of consumers specifically prioritise saving for experiences in their overall financial budgeting.
40% of respondents said experiences provide them with their best memories, with over a third (35%) stating that having experiences helped them see the world in a new light, and 33% saying they find shared experiences with others deeply enriching, whether that's exploring a new destination, attending a cultural event, or simply enjoying a meal together. Over 4 in 10 (41%) said that how ‘one of a kind' an experience is would be a determining factor in whether to spend on an experience, highlighting their ambition to make lifelong memories.
And this desire to enjoy new experiences is fuelling travel, with 26% of people saying this is the primary reason they travel and over 4 in 10 (41%) saying they'd travel to another country, or continent, just to enjoy an experience they're passionate about.
