Big Red Group Chief Executive notes experience economy shows optimism albeit with challenges

While the Reserve Bank of Australia (RBA) recently reducing the cash rate to 3.85% in May 2025 is a welcome move, David Anderson, Chief Executive of Big Red Group (Australia’s largest experience marketplace), notes that the burden on operators still persists. However, there is cause for optimism, with indicators suggesting improving consumer sentiment and demand in Q4 due to the rate cut.

Anderson advises “despite the Reserve Bank’s recent decision to cut the cash rate to 3.85%, many Australian households are still feeling the effects of extended financial pressure. Inflation remains elevated, and essential living costs continue to absorb a significant portion of income, which means discretionary spending on travel and experiences is still constrained.

“The experience economy, which includes tourism, hospitality, and events, is navigating a tough environment. Operators are faced with the challenge of adapting to a market where consumers are more cautious and deliberate with their spending. This means there is an increasing need to redefine and offer genuine value to attract travellers who are weighing every dollar carefully.

“Signs suggest the rate cut is easing financial pressure and encouraging more forward bookings and enquiries, pointing to a cautious optimism for Q4. We anticipate this momentum to continue to build throughout the financial quarter and beyond, as Australians feel confident in prioritising spend for travel and leisure again, particularly for experiences that deliver genuine value alongside quality.”

Anderson adds “however, the path to recovery is uneven. Larger cities tend to rebound faster due to more diverse offerings and infrastructure, while smaller operators often struggle with limited access to customers and higher operational costs. While the burden on households is anticipated to ease further in the coming months, the experience economy must be ready to meet the changed conditions and increased demand by continuing to adapt and delivering compelling, accessible, and affordable experiences.”