The experience economy

From festivals to far-flung getaways, UK consumers are placing more value on experiences than possessions. Even in a cautious economic climate, they’re managing their budgets to make spending feel more worthwhile. Notably, 13% say they feel less guilty about spending on experiences, while 16% prefer gifting experiences to physical items. And for many, the memories matter most: 63% would rather talk about something they did than something they bought¹.

The experience economy has become a lifestyle choice, with entertainment and travel outperforming retail in recent years.

Even as financial pressures continue, people are carving out room in their budgets for memory-making. Whether it’s a night out, a short break or a one-off cultural moment, consumers are prioritising the emotional return on their spending.

Moments that matter

Spending on entertainment and leisure continues to thrive as one in four UK consumers (24%)¹ say they will spend more on memorable experiences and events this summer compared to last summer.

• Hospitality and leisure’s share of spending (versus retail and wholesale) peaked at 37% in August 2024
  
• Four years of consistent growth in travel spending since March 2021
• 42 out of 48 months of increased spending on entertainment (year-on-year) since May 2021.
  

Sharing the experience

Social media has elevated the role of entertainment – transforming nights out, concerts and live events into shareable moments that help define identity and status. But, while demand remains high, perceptions of value are more mixed.

• 27% say the quality of entertainment experiences has improved in the past decade
• 39% say spending on entertainment is still just as important as it was 10 years ago
• 58% believe entertainment no longer offers the same value for money.
   

While people still prioritise experiences, they’re also raising their expectations. The bar for what feels “worth it” is higher and brands in the entertainment space must deliver standout quality or emotional resonance to justify the cost.

What this means for brands

Experiences are now currency. Brands must create moments that matter – and ensure they feel worth the investment.

1. Elevate the emotional return – connect through joy, meaning or memory-making
2. Quality counts – consumers are more discerning than ever. Stand out or risk being cut out of their spending plans
3. Make it shareable – amplify brand reach by designing experiences that consumers want to talk about.

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