A new report released on Thursday by Visa shows that although consumers wish to spend more on travel and experiential activities during this holiday season, physical gifts will still account for the largest portion of their spending.
The report found that over half of the respondents listed travel and on-site activities as their top preferences on their wish lists. However, among these respondents, only 15% gave priority to purchasing experiential gifts for others, while 27% planned to prefer buying physical gifts.
Visa The chief economist of the United States, Michael Brown, stated that the gap between what shoppers "want" and what they "actually buy" is mainly due to higher travel costs, lower consumer confidence, and a greater emphasis on value for money.
Brown to CNBC says: 'We see that consumers are making some interesting trade-offs. If I travel more, I would probably send fewer physical products, so this actually reflects a broader context.'
The survey was conducted among approximately 4,660 American adults aged 18 and above, aiming to be representative of the overall American consumer population.
Brown says that budget pressures also affect people's holiday travel. Considering the rise in air ticket prices and overall inflation, Visa expects that more people will celebrate holidays "a bit closer to home" than in the past. In September, consumer prices in the United States rose by 3.7% year-on-year, mainly driven by soaring energy costs.
Airlines have raised ticket prices this year due to the Middle East conflict, which has increased their fuel costs by billions of dollars. Even if fuel prices fall, airline executives indicate that ticket prices may still remain high. According to the Consumer Price Index, ticket prices in September increased by more than 22% year-on-year.
These trends mean that consumers are likely to make more targeted decisions about where to spend their money, especially in a situation where inflation is driving up the prices of various goods across the board.
Brown says, "Consumers have aspirations. They want those experiences, they want to travel, they want to go out and see the world. However, the reality of the economic situation is that as prices rise and economic uncertainty increases, they need to find a balance between the current economic environment and these desires."
The report also found that only households with incomes exceeding $200,000 experienced an increase in travel expenses from November 1st to the beginning of next year compared to the same period from 2025 to 2026. On the other hand, many other income groups reduced their travel expenses.
Brown said, "If you consider this group, many of them hold stocks, and the rise in the stock market over the past few months has brought a lot of positive sentiment to this specific wealthy group. I think this is also one of the factors that continue to drive the current overall macro spending."
At the same time, shoppers with lower incomes place more emphasis on value for money. A consumer survey in October by Visa showed that among consumers with incomes below $100,000, about one-third plan to turn to cheaper brands or stores when purchasing gifts during this holiday season.
Although Visa expects holiday sales to increase by 4.5% year-on-year, a large portion of this growth is due to inflation. Excluding these price increases, sales are expected to grow by only 1.1% this year, which is lower than the 1.3% increase during the holiday season in 2025.
Brown ultimately indicates that these survey results may be a positive sign for the broader retail industry during this year's holiday season. With a decline in travel spending and an expected increase in spending on physical gifts, this could boost the retail sector at a time when consumer spending is under pressure.
At the same time, he said that consumers may also spend more money this holiday season simply because they have become accustomed to higher prices.
Brown said, "But of course, consumers have already internalized the higher prices of goods, and I think that's why they are reporting higher expected expenditures this year. I believe these figures must be viewed in the context of inflation, especially consumers' expectations for future inflation trends. I think this has a significant impact on consumer psychology this quarter."
