Author: Alan Rust
We have witnessed a shift in what people find important to spend money on. A study by Harris Group found that 72 percent of millennials prefer to spend more money on experiences than on material things. In the past, young adults placed high value in a car and home, many are now seeing them as major commitments. The trend started before millennials but is gaining momentum: Since 1987, Harris group found that the share of consumer spending on live experiences and events relative to total U.S. consumer spending increased 70 percent.
Today, owning a product is easy. Even the poorest person can own a cell phone. Owning something means nothing. It’s possible to say that it’s become something that’s expected of people. Millennials are looking elsewhere. They saw their parents spend on material goods in order to show off their wealth and success. It often led to them becoming chained to debt, and in some cases they even lost their homes because they were so tied up in mortgages.
We can see more of what other generations are doing today with social media. Therefore, Millennials are the cultural trailblazers for older and newer generations. Consumers today are broadly catching on to the notion that experiences make you happier and are as valuable (or more) than buying fancy things. Various psychological studies are showing that all people -- not just millennials -- are happier when their money is spent on living, rather than on having. Mintel's 2015 American Lifestyles report projects that over the next five years, total spending will grow by nearly 22%, with the so‐called "non‐essential" categories, including vacations and dining out, expected to see the greatest gains. They want the chance to connect with new people, according to 72 percent of millennials spending money on experience-related purchases.
Missouri Tour Company has created a new way to meet new people and find new places in the heart of the city of St. Louis. We know people are looking for experiences that provide them with a lasting impression. We have a lot of different experience tours that you can choose from including Food tours, an Art tour and Drinks tours.