SPLURGING IS BACK, BUT FOR DIFFERENT REASONS
In 2008, PGAV published research based on a study conducted just before the hit of the most recent American financial crisis, starting in December 2007. Tat study provided the final glimpse into the mind of the pre-recession traveler; and most importantly at the time, their predisposition to splurge. In Te Splurge Traveler, we looked at the demographic of destination guests who were likely to spend a little extra money to ‘trade-up’ for a premium experience (58% of guests were willing to splurge, most of them could be found at zoos, aquariums, and theme parks, and Generation X and Y were the most likely). Also, the research revealed what motivated people to splurge, such as the creation of special memories and opportunities to be great parents. But with the stressful and wallet-tightening hit of the financial meltdown, whatever happened to these splurgers?
Well they’re back; and actually, the ‘intent to splurge’ is slightly up from its pre-recession marker, now hovering around 25%. Te difference is that the motivations to splurge have changed. While ‘creating memories’ is still in the top three, they’re now more interested in opportunities that can reduce their stress or give them personal enrichment. On top of that, they
10% 15% 20% 25% 30% 35% 40% 45%
want activities that give them plenty of choice and control, and things they couldn’t do anywhere else.
Te interest to splurge is greater among people under 40 and those who have children, referencing the desire to be great parents. Among the above aspects, today’s splurgers are also looking for quality, convenience, comfort, access (like behind-the-scenes tours), and personalization (one-on-one interaction with an expert). Tis provides destinations with a unique insight and challenge to get creative and provide new premium experiences that are one-of-a-kind and give your guests a tremendously personalized, memorable experience.
Motivations Inspiring Splurge Purchases 80%
Creation of Memories
Less stress Personal
enrichment Being good
Self Expression 39%
Average Interest in Splurge Purchases by Segment 40%
33% 21% 24% 26% 27% 24% 16% 23% 77% 68% 64% 62% 52%
HH w/ kids
HH no kids
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