TD Bank: Holiday shoppers shifting from traditional presents to experiences
Consumers are changing in how they approach holiday gift giving.
That’s one of the takeaways from TD Bank’s 2024 Merry Money Survey, which revealed that shoppers are gradually shifting from traditional wrapped presents to experiences. Nearly half (45%) of consumers plan to gift experiences over physical items, with younger generations leading the way. Gen Z (68%) and Millennials (61%) are at the forefront of this movement, while baby boomers (23%) remain more attached to conventional gifts.
The trend is particularly strong among higher-income households, with 55% of those earning $100,000 or more opting for experiential gifts. Dining experiences top the list, as 53% of consumers who will gift an experience plan to treat loved ones to a special meal or evening out.
Payment methods
In other findings, debit cards still lead the way in holiday shopping, with 42% of shoppers choosing them as their preferred method of payment. Credit cards follow closely at 34%, with many consumers drawn to the perks they offer: 69% of those who prefer credit cards citing rewards or cash back as the primary reason for their choice.
Additionally, 31% of credit card users say the enhanced protections provided by credit cards, such as fraud prevention and purchase protection, are key factors in their decision. Meanwhile, 18% of respondents still prefer cash or checks for their holiday spending.
[READ MORE: Forrester: Total U.S. holiday sales to hit $1 trillion, with online up 10.1%]
TD also found that shoppers are seeking out those special deals this year, with 82% indicating that they are actively looking for offers and price reductions for their shopping.
Other findings from the TD survey are below:
- Shoppers are still getting strategic with their spending and taking advantage of seasonal deals. More than half (55%) of respondents plan to make the bulk of their purchases on November’s Black Friday.
- Almost one-fifth (19%) of respondents are considering using generative AI for their holiday shopping ideas this year. Of those respondents, more than two-thirds (69%) indicated that they have a preference for brands that offer AI or virtual reality features.
- One-third (33%) of respondents indicating that they are reducing their gift spending compared to previous years, and 22% are setting aside extra money in advance of the holidays. Additionally, 61% of people are cutting back on other discretionary spending, such as dining out, in preparation for holiday budgets.
For the TD survey, Big Village surveyed 2,005 Americans 18 years of age or older who celebrate the holidays. The online survey was conducted Sept. 25-29, 2024.
