As they face holiday spending season amid higher prices, consumers are expected to prioritize experiences and value to celebrate the season, according to an analysis from Deloitte.

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“This holiday season, consumers plan to prioritize celebrating with friends and family through experiences,” said Brian McCarthy, principal, Deloitte Consulting LLP. “To do so, they are finding ways to make their dollars go further on the gifts they want to give and the events they want to experience. With consumers leaning more into experiences and continuing to search for value, retailers have the opportunity to attract shoppers and better connect with customers by focusing on loyalty programs and offering unique incentives.”

Key takeaways

  • Consumers surveyed plan to spend an average of $1,778 this holiday season, up 8% year-over-year. The increased spending is driven by an improved economic outlook and a shift to categories that emphasize the spirit of the season, such as experiences (up 16% year-over-year) and non-gift items, including décor and party apparel (up 9% year-over-year).
  • Among consumers surveyed, 7 in 10 expect higher prices. Many plan to adjust spending by cutting back on self-gifting (32% compared to 48% in 2023) and shopping at least one promotional event (78% versus 61% in 2023) this season.
  • Those looking for deals may challenge loyalty — 62% say they will shift brands if the preferred brand is too expensive, 48% say they will shop at more affordable retailers.
  • Most holiday spending is expected to occur in late November despite heightened interest in October promotional events.
  • Consumers are planning to spend an average of $261 on hosting guests this season, and 70% would spend more on items or services to make hosting the event more convenient.

Why this matters

Consumers are preparing to celebrate the holidays with a new perspective on what makes this time of year special. For 39 years, Deloitte has studied consumer behavior and sentiment ahead of the crucial holiday shopping season. The “2024 Deloitte Holiday Retail Survey” examines what retailers can likely expect from consumers shopping for the holidays. According to this year’s study, while holiday shoppers are more optimistic and willing to spend, they remain focused on finding the best deals to maximize their budgets, even if it means choosing value over loyalty. Spending on experiences, including travel, hosting gatherings, or attending holiday concerts and activities, is on the rise, underscoring shifting priorities and new opportunities for retailers. 

Experiencing the holidays in new ways

This year, gifts are not the only items on consumers’ holiday shopping lists. Respondents indicate increased confidence in the economy and plan to allocate more of their budgets to experiences and non-gift purchases. Among surveyed consumers, 43% expect the economy to improve this year, up nine percentage points from last year. Overall, consumers plan to spend an average of $1,778, up 8% year-over-year, with the average number of gifts purchased this year at nine versus eight in 2023. 

  • Retail spending (gifts and non-gifts) will likely remain relatively flat year-over-year ($1,043 compared to $1,020 in 2023). However, it still accounts for most (59%) of the average expected holiday spend. Surveyed consumers expect to spend $536 on gifts (down 3% year-over-year) and $507 on non-gift purchases, up 9% year-over-year. In addition, surveyed consumers plan to spend $735 on experiences, up 16% year-over-year.
  • Participation in experiences is near pre-pandemic levels (83% this year versus 86% in 2019). Overall, the five-year CAGR (2019 – 2024) for experiences is 4.3% compared to 3% for retail categories.
  • All those surveyed making less than $200,000 intend to spend more this season, with high-income earners (those making $100,000 to $199,999) seeing the most significant gains; they plan to spend 17% more year-over-year.          
  • Among retail executive buyers surveyed, 8 in 10 expect sales growth this holiday season, aided by more in-store and online traffic.
  • More shoppers plan to gift food and beverage products this year — up nine percentage points year-over-year. Although holiday shoppers plan to spend 10% less on clothing and accessories this year, the category remains at the top of gift lists. Additionally, 4 in 10 shoppers plan to gift experiences (such as event tickets or vouchers to restaurants or spas).
  • Holiday gatherings are a big part of experiences at home with 1 in 4 consumers surveyed planning to host a holiday gathering, invite an average of 10 guests, and spend an average of $261. At the same time, 70% of hosts are open to spending more on items or services to make hosting more convenient. They’re also resourceful — 47% would ask guests to bring food or beverages to offset costs, and 31% say they will invite fewer guests this year.