Nearly three in five (58%) Gen Z and Millennials in the UK are choosing to spend on experiences rather than products this summer, according to new research from American Express.
The survey found that younger consumers are favouring activities such as music festivals, theatre trips and meals out, often using loyalty points and perks to make their money go further.
Social platforms are shaping summer plans for many. More than two in five (43%) said posts inspire their choice of experiences, while nearly half (47%) admitted they want to visit a destination or attend an event straight after seeing friends or influencers share content online.
Despite this, quality outweighs quantity. Three in five (60%) said they would rather do fewer things well than pack in numerous cheaper activities. Almost three-quarters (73%) are also planning ahead financially to secure the experiences they value most.
Rewards and perks remain key motivators. Almost two-thirds (61%) of Millennials are more likely to spend on experiences if they can use discounts or points, a figure that rises to 67% among Gen Z.
Nearly half (48%) believe discounts through loyalty schemes deliver the best value, while more than a third (36%) favour redeeming points against ticket costs.
A fifth (20%) also value exclusive extras such as VIP access or discounted merchandise, showing appetite for enhanced experiences.
How young consumers choose to pay is also heavily influenced by incentives. Seven in ten (70%) said they are swayed by better rewards or cashback than other payment options, while two-thirds take sign-up bonuses (66%) or retailer-specific perks (63%) into account.
Dan Edelman, UK General Manager, Merchant Services at American Express, said:
“Our research shows highlighting the value and added benefits that younger consumers are seeking remains important for retailers, and can help drive repeat spend. Gen Z and Millennials say that rewards such as earning points or cashback influence how they choose to pay and where they choose to spend. This will be a key battleground for retailers as they look to stand out against competitors.”
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