High-Earning Consumers Prefer Luxury Experiences Over Things
When it comes to living large, big earners like to splurge on making memories more so than on, say, a new handbag, PYMNTS Intelligence research reveals.
By the Numbers
The February/March installment of the PYMNTS Intelligence “New Reality Check: The Paycheck-to-Paycheck Report” series, subtitled “Why One-Third of High Earners Live Paycheck to Paycheck,” drew from a January survey of more than 4,200 U.S. consumers to understand how they are spending their money across income groups. The results revealed that the highest earners are the most likely to splurge on meaningful experiences.
Specifically, those making more than $200,000 a year spend 9.3% of their incomes, on average, on recreation, leisure and entertainment. This share is compares to the 8.5% they spend on clothing, accessories and personal care items. Granted, these high-earners allocate a greater portion of their paycheck to both of these categories than shoppers in any other income bracket.
The Data in Context
Businesses, for their part, are noting the opportunity here. Over the summer, Capital One Ventures invested $25 million in luxury travel subscription brand Inspirato, aiming to advance the brand’s mission.
Indeed, firms’ moves in the luxury experience space verge on the silly. Subscription dog treat company BarkBox’s new Bark Air service, for instance, lets dog owners reserve flights on Gulfstream 550 private jets, with all members of the family traveling in the main cabin.
The airline will offer weekly flights from New York to Los Angeles — and LA to N.Y. — as well as twice-monthly flights from New York to London, with fares starting at $6,000 one-way on the transcontinental U.S. flights — a ticket includes a seat for one person plus one dog — plus $8,000 one-way on the New York to London route.
Flights offer a dog-specific menu with delicacies such as “dog Champagne” (chicken broth), and someday include an onboard play area resembling a dog park.
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