Consumers look to experiences in ‘radical shift’ in post-COVID behaviour

More than a third of households who saved money during lockdowns are planning a post-Coronavirus holiday, with a survey from global consulting firm Boston Consulting Group finding pent-up demand for road trips, day spas and theme park visits as the 'homebody economy' potentially comes to an end.

However, 18% of respondents to the pre-Christmas survey want to spend less in general and 17% plan to use savings to make extra mortgage repayments or pay off other loans.

Out of the 3000 people surveyed, about 55% managed to save amid COVID-19 restrictions. Savers were typically professionals working full-time and the majority kept their jobs during the pandemic.

During the period covered by the survey, 64% of respondents were spending less than they did pre-COVID and there has been a trend away from spending on alcohol, jewellery, cosmetics and luxury brands.

While 13% of consumers are now travelling more than pre-COVID, this figure is expected to rise to 42% next year. The majority of the planned travel is interstate, with concerns about Coronavirus restrictions weighing on Australians’ decisions to head offshore.

A further 19% of survey respondents said they would use their extra savings for investments, such as shares or property.

Advising that most consumers indicated their finances, saving and spending would be different post-pandemic, Boston Consulting Group managing director and partner, Monica Wegner stated "we also know that those who plan to spend are mostly looking to spend on leisure and travel in addition to their health and wellbeing.

“We are seeing pent-up demand across several categories, including travel, spas, clothing, theme parks and cinemas. We expect these categories to experience a significant uptick in sales, with in-store sales seeing a rebound in popularity for retail categories."

The survey also saw a shift towards health and wellbeing products, purchases supporting small local businesses and an increased appetite for fresh produce.

Wegner added "there will be a radical shift in consumer behaviour post COVID-19

“We expect a much-needed boost to the travel and retail sectors, both of which have had a tough couple of years.”

Image courtesy of ExperienceOz.