Consumer Spending Analysis: How Rising Entertainment Costs Have Sparked “Funflation”
Amusement, Entertainment & Fun-Filled Activities Are Pricier Than Ever, the Latest Transaction Data Reveals
Stickershock is nothing new for today’s consumers who face inflationary prices at nearly every turn. In fact, while steeper prices have been hard to avoid almost across the board, they’ve climbed to unprecedented levels in some areas, particularly with entertainment, events, and in-person experiences geared towards fun.
That’s why some consumer spending experts have recognized a new era of “funflation” that’s now turning the screws on wallets and leaving many folks feeling the sting of the exorbitant costs of having fun.
A Closer Look at Funflation, Rising Costs of Entertainment
Getting out to go to an amusement park or a concert in 2023 means shelling out a lot more on tickets, according to the latest credit card transaction data.
That’s because, in 2023 alone, the prices of various entertainment-type activities have skyrocketed, with higher-cost tickets for some of the most popular options around, like (and not exclusive to):
NFL game tickets
Taylor Swift or Beyonce concert tickets
Disney theme park tickets and season passes
Notably, funflation is coming on the heels of post-pandemic spending surges on entertainment. Specifically, many folks unleashed savings they had built up during the pandemic, indulging in fun and entertainment, like tickets for live events and amusement park vacations.
Now, however, many families are pulling back under mounting financial pressures.
Has Fun Become Unaffordable?
Decades ago, going to concerts and getting out to experience fun in person wasn’t out of reach for budget-focused families and the average middle-class individual. Mirroring those ventures at today’s costs, though, has become near impossible. Even the most remote access — like nosebleed seats or basic entrance fees — are more expensive than ever.
Examining the numbers and analyzing consumer spending on entertainment puts this into crystal-clear focus. In fact, according to some of the latest available transaction data, the rising costs of entertainment and live experiences have meant that:
Close to 2 in 3 Americans have cut back on their live entertainment spending.
More than 1 in 3 say they cannot afford the gutwrenching ticket prices for activities they’d otherwise be buying.
More than 1 in 5 are willing to take on debt to continue enjoying their favorite entertainment activities.
Admissions costs for entertainment activities and events have increased faster than the prices of essentials, like food and gas.
Despite the constraints and demands on consumers’ wallets, however, this year’s spending on entertainment, amusements, and events is on track to grow by roughly 23% from last year. Additionally, retail consumer spending is poised to grow by about 0.7% from 2022.
Steady Consumer Entertainment Spend Means Fewer Transactions
The rising costs of getting out and having fun have not gone unnoticed by consumers.
Still, that hasn’t meant a drop in overall spending on entertainment and live amusements. Instead, something a bit more interesting has occurred with:
Some consumers cutting back on the number of events they attend in a given year: These folks are generally choosing to focus their “fun” discretionary spending on one or two major attractions a year.
Others opting out entirely: Experts estimate that roughly 10% of consumers have decided not to spend their limited funds on ultra-high-priced entertainment.
How Venues Are Trying to Boost Consumer Spending Outside of Ticket Prices
For those who are willing to pony up the big bucks to still have fun these days, paying steep ticket prices is likely just the start of the spending that comes with these live experiences. Beyond that, some venues are finding ways to tighten the squeeze on consumers’ wallets after they walk through the door.
That includes cash grabs via:
Apps and in-app spending for VIP experiences
Special “memberships” with deals that encourage more visits or extra spending
Increased prices for parking, food, and drinks at the venue
Steeper costs for toys and souvenirs
Rising rates for nearby or on-site hotels
With all of that, some folks are rethinking what it means to get out, get together, and have fun. That’s meant shifting consumer spending trends, with some looking for more affordable alternatives that deliver the same level of amusement without draining their wallets.
