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Insight of the Day: Groupon: American Consumers Are Spending More on Experiences, Less on Products

Key Points:

  • Experiences Over Products: Consumers are spending more on travel and local experiences while cutting back on buying goods. This is reflected in Groupon's results, where the "Goods" business is struggling.

  • Why the Shift:  Inflation is a key factor, with many consumers across all income levels reducing non-essential spending due to rising prices.

  • Experiences Remain Popular: Businesses like Groupon (experiences) and Vivid Seats (ticket resale) are seeing growth, highlighting the ongoing demand for experiences.

  • Generational Trend: Younger consumers, especially Gen Z, are more likely to prioritize spending on recreation and entertainment.

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