Accommodation is profiting from a shift in spending away from material goods towards life experiences, says one of Australia’s leading banks.
A new report by National Australia Bank has revealed the accommodation sector to be growing much faster than areas of traditional consumption, including retail trade.
The survey of more than 2,000 adults found social media is becoming more influential in shaping consumer habits, with Aussies concentrating “less on buying things and more on doing things.”
Onshore holidays ranked alongside movie trips and restaurant outings as the experiences favoured most by Aussies over the year, with overseas trips the next highest ranked experience.
A massive 84 percent of over fifties reported enjoying a holiday in Australia over the last 12 months, with 75 percent of those in their thirties and 68 percent of 18 to 29-year-olds also loving a domestic break.
All three demographics rated domestic holidays more positively than international travel breaks, but both fared well in the rankings of positive life experiences.
Losers in the consumer spending war were warehouse stores, traditional travel agents and sports chain stores, which all ranked lowest for retail experiences.
NAB economist Dean Pearson, said: “Businesses that are focussing on delivering a truly great customer experience are really reaping the rewards from this gradual change in what people spend their money on.
“Social media is supporting this shift towards experiences as more consumers share their lives on Facebook, Instagram, Twitter and Snapchat.
“Posting pictures of something we’ve bought is often deemed to be more distasteful and less exciting than posting pictures of something we’re doing.”
Back in 2011, Reserve Bank Governor Philip Lowe noted a “gradual shift” in household preferences away from goods and towards experiences.
The latest survey shows women aged between 18 and 29 are the most likely group to share their experiences on social media, followed by women aged between 30 and 49. Men aged over 50 years are the least likely to share their experiences online.
Other big beneficiaries from the shift in consumer preferences are recreational service providers such as entertainment, food and leisure services.
Young and mid-aged Australians rated sporting events, theme and amusement parks and live concerts more highly than baby boomers as favoured experiences.