Consumers are spending on physical gifts even as travel tops wish lists, Visa survey finds

Visa’s survey suggests a gap between what US consumers want for the holidays and what they expect to buy: travel and live events top more than half of respondents’ wish lists, but physical gifts are more often prioritised for others. The findings matter for retailers because spending on gifts could support holiday sales while travel costs and wider budget pressures weigh on household spending.

The survey covered about 4,660 US adults. Twenty-seven per cent said they would favour physical gifts, compared with 15% prioritising experiences for others; Visa says higher travel costs, weaker consumer sentiment and value concerns help explain the difference. Airfares were up more than 22% year on year in September, while Visa forecasts holiday sales growth of 4.5%, mostly due to inflation, and 1.1% after price rises are excluded. Households earning over $200,000 were the only income group to increase travel spending for trips from November into early next year; about a third of those earning under $100,000 plan to switch to cheaper brands or shops.