According to Mastercard data, spending on air and rail travel has increased while purchases of flowers and jewelery have been declining in recent years. This suggests that couples may be more focused on experiences than holiday gifts and that small businesses, especially those in the destination, may want to plan accordingly.
Love Index Mastercard 2018
According to the 2018 MasterCard Love Index, Valentine’s Day sales rose sharply before the holidays. Indeed, of the 48.8 million transactions recorded before Valentine ‘s Day 2015-2017, the majority of them took place on February 11th.
It’s perhaps because lovers spend the bulk of their money trying to connect to each other rather than the gifts that usually mean the day.
According to Mastercard (NYSE: MA) data since 2015, from February 11 to 14 each year, there has been a 1064% increase in the amount spent on air and rail travel. And there has been a 23 percent increase in travel experience spending before Valentine’s Day, suggesting that couples are planning some type of excursion in advance. There was also a 27% increase in hotel spending during that same period.
Could this be the beginning of a new trend?
“Spoiling your beloved on Valentine’s Day shows no sign of slowing down.Our data suggests that even though people still buy traditional gifts, the transition to a good experience outweighs any Says Ann Cairns, president of Mastercard International.
There are still items usually bought on Valentine’s Day. But a pillar of this day is undergoing changes.
The data show an overall decline of 3% in flower expenses. The number of transactions on flowers, however, increased by 14%. Mastercard suggests that this could be due to the fact that more people are buying fewer flowers at a time.
It’s the same with jewelry. Mastercard notes a 9% decrease in the amount spent, even though the transactions grew by 10%.
The amount spent on restaurant catering for Valentine’s Day has increased by 40% since 2015.
Valentine’s Day can obviously be a great opportunity for many small businesses. Florists and restaurateurs obviously continue to host the day. But the sharp increase in other spending suggests that other small businesses can also take advantage of Valentine’s Day sales.
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