Consumers are hoping for more travel and experiences this holiday season, but physical gifts continue to take the lion’s share of their wallets, according to a new report from Visa THURSDAY.
The report reveals that more than half of those surveyed put travel and live events at the top of their wish list. Yet only 15% of respondents prioritize spending on experiences for others, while 27% plan to prioritize physical gifts.
This gap between what shoppers want and what they plan to buy is largely due to higher travel costs, declining consumer confidence and an emphasis on value, according to Michael Brown, Visa’s senior U.S. economist.
“We’re seeing some interesting trade-offs from consumers,” Brown told CNBC. “If I travel more, I’m probably going to give away fewer physical goods, so it’s really a broader context.”
The survey was conducted among approximately 4,660 U.S. adults ages 18 and older, designed to be representative of the broader consumer population.
Brown said budget pressure also factors into holiday travel, as Visa expects more people to celebrate the holidays “a little closer to home” than in the past, given rising airfares and general inflation. In September, consumer prices rose 3.7% annually, driven by rising energy costs.
Airlines have raised the price of their plane tickets this year as their fuel costs have increased by billions of dollars due to the war in the Middle East. And even if fuel prices fall, executives said rates are expected to remain high, with rates up more than 22% in September from a year earlier, according to the Consumer Price Index.
These trends mean that consumers will likely be more intentional about where they spend, especially as inflation drives up prices across the board.
“Consumers are aspirational. They want these experiences, they want to travel, they want to be in the world,” Brown said. “However, the economic reality is that with rising prices and economic uncertainty, they must balance the reality of the current economic environment with these aspirations.”
The report also found that only households with incomes above $200,000 spent more on trips departing between November 1 and the beginning of next year compared to 2025 and 2026. In contrast, many other income groups reduced their travel spending.
“If you think about this segment, a lot of them own stocks, and the rise in the stock market over the last few months has created a lot of positivity among this specific affluent demographic, and I think that’s one of the factors that continues to drive even overall macroeconomic spending today,” Brown said.
Meanwhile, less affluent buyers are emphasizing value. Visa’s October consumer survey showed that about a third of consumers with incomes below $100,000 would look to cheaper brands or stores when shopping for Christmas gifts this season.
Although Visa projects a 4.5% year-over-year increase in holiday sales growth, much of that figure is due to inflation. Without these price increases, sales are expected to increase only 1.1% this year, compared to 1.3% during the 2025 holiday season.
Ultimately, Brown said the results of the investigation could be encouraging for the entire retail scene this holiday season. By placing less emphasis on travel and projecting more spending on physical gifts, it could boost the sector at a time when spending is under pressure.
At the same time, he said consumers may simply be expecting to spend more this holiday season because they have become accustomed to higher prices.
“But, of course, consumers internalize higher product prices, and I think that’s why they’re reporting higher anticipated spending this year,” Brown said. “I think these numbers just need to be looked at through the lens of inflation and particularly consumer perception of where inflation is going. I think that’s weighed heavily on consumer psychology this season.”
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