Australians are budgeting $80 more for Christmas gifts this year and $100 more for food and drink during the festive season, according to research by data and insights company Pureprofile.
Total gift budgets for 2024 averaged $468 (up from $388 in 2023), with food and drink budgets sitting at $406 (up from $306 in 2023).
Pureprofile’s 2024 Christmas Report, its sixth, is a global report based on the insights of over 4,300 panel members from Australia, New Zealand, the UK, the US and Singapore.
Despite higher spending intentions, many Australians will still be on the lookout for bargains, with 67% looking to save on Christmas expenses this year.
Almost half of (45%) also expect to take advantage of Black Friday and Cyber Monday deals. Other money-saving tactics include buying fewer presents (41%) and cheaper food alternatives (27%).
There is high positivity towards the festive season in Australia, with 60% feeling emotionally positive as inflationary pressure eases. This is a marked increase from previous years (54% in 2023, 57% in 2022 and 56% in 2021).
“This is the first time in five years that we’ve seen a loosening of the Australian purse strings and a noticeable uplift in holiday spirit,” said Martin Filz, CEO of Pureprofile.
“This shift is remarkable and suggests we may be emerging from the long shadow of cost-of-living concerns.
“However, a cautious sentiment persists, with shoppers actively seeking savings and bargains. Retailers should take note that Australians are inclined to shop in-store, making it essential to offer more substantial in-store discounts to drive foot traffic.
“Interestingly, despite the prevalence of AI, only 7% of Australians plan to use it for holiday planning this year. It seems that some aspects of Christmas cheer remain untouched by technology, proving that perhaps not everything can be enhanced by ChatGPT — except maybe tackling that endless list of Christmas cards.”
Most Australians are price-conscious this year (80%), ranking it higher than quality (68%) with regard to Christmas purchasing decisions.
Factors such as brand reputation (26%) and recommendations or reviews (20%) also had less impact.
Shoppers reported that retailers offering a promotion with a percentage off (50%) held significantly more appeal than free shipping (17%) or buy one get one free offers (12%).
One in five working Australians (20%) anticipate rising costs will shrink their year’s workplace Christmas party.
Around half of working Australians expect their company Christmas party to be similar to last year, but one in four (25%) do not expect to be treated to a workplace celebration at all.
Most working Australians (73%) are looking forward to their workplaces closing over the Christmas period and enjoying their hard-earned leave. However one in ten (9%) do not appreciate being compelled to take their annual leave at Christmas, possibly because of limited and expensive travel choices over the peak period.
Australians are looking to travel again for Christmas 2024, with 41% expecting to travel this year. However, only 8% plan to travel internationally.
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