First Look: Consumers' 2022 Holiday Plans Report

Key Takeaways

• High financial anxiety leads more consumers to budget now in order to afford holiday expenses: To avoid going into debt this holiday season, consumers are being smarter about budgeting in advance and are more likely to favor a BNPL approach to cover holiday expenses over opening a new credit card.
• Though shoppers are feeling inflation’s pinch, spending levels will look similar to last year: Consumers will be looking for the best deals and making compromises so they can keep their holiday spending in check. While that may have previously been good for Black Friday retailers, less than half of shoppers plan to to take advantage of the sale event.
• Travelers will need to make tradeoffs to combat cost concerns: Americans are looking forward to holiday travel after two years of scaled-back celebrations, but cost has replaced COVID as an influential factor. To avoid overspending, travelers plan to shorten trips, bunk with relatives and leverage points and rewards to cover costs.
• Purchasing holiday groceries will be a stressor for some, but most feel excited about celebrations: Despite inflation, most consumers plan on sticking to a consistent foods and drinks budget. Hosts from different generations approach their holiday celebrations differently, an important factor for brands to consider.