Holiday spending is trending upwards.
Discover’s annual holiday survey has revealed that spending is expected to be on the rise this holiday season.
After an 11% drop in expected holiday spending from $1,014 in 2013 to $900 in 2014, consumers plan to spend 3% more in 2015. Compared to five years ago, when holiday shoppers planned on spending $730 on average, this year’s anticipated spend of $927 represents a 27% increase.
When differentiating between Millennials and non-Millennials, the younger generation is spending more at a faster rate: 43% of shoppers between the ages of 18-34 expect to spend more this year than they did last holiday season, compared to 22% of shoppers ages 35 and older.
The preferred method of payment for holiday shopping will be with a credit card, as approximately 41% of those surveyed will pay with credit, followed by 27% using a debit card and 18% spending cash. Credit card usage is up 18% compared to five years ago when only 23% of those surveyed planned on using their credit card most often for holiday shopping.
Both Millennials and non-Millennials plan to spend similar amounts overall this holiday season—$941 and $926, respectively—however, the Discover survey found stark differences in the two groups’ shopping habits.
Millennials prefer mobile shopping experience more than non-Millennials
Millennials are expected to outpace non-Millennials more than two-to-one this year when it comes to shopping on mobile devices, as 73% of Millennials surveyed say they will use a smartphone or tablet for holiday shopping, compared to 32% of non-Millennials. Similarly, 52% of Millennials say they’ll do most of their holiday shopping online, compared to 42% of non-Millennials.
When it comes to mobile wallets, 36% of Millennials surveyed currently use that technology, compared to 15% of non-Millennials. Among those using a mobile wallet, 80% of Millennials say they will use it for holiday shopping, compared to 69% of non-Millennials.
Additional survey findings include:
- While Millennials plan to spend slightly more this season than non-Millennials, 66% of Millennials say they will set a budget for holiday spending, compared to 52% of non-Millennials.
- Consumers identified sales/discounts (57%), convenience (19%) and customer service (13%) as the most important factors when shopping at retail stores this holiday season.
- Consumers are split when asked what type of shopping they plan to do most this year, with 45% planning to shop in-store and 46% shopping online
- Credit card rewards continue to be a factor in choosing credit as the preferred method of spending. Of those using credit cards the most this season, 42% are doing so in order to earn rewards points