Physical Gifts Lead Holiday Buying Plans Despite Demand for Travel

Travel and live events rank high on consumers' holiday wish lists, but shoppers are more likely to prioritize physical presents when buying for others, according to a Visa report released Thursday, Nov. 5. The findings suggest that rising costs and pressure on household budgets are shaping gift purchases, even as consumers express interest in experiences.

More than half of respondents placed travel and live events at the top of their wish lists. Among those respondents, however, only 15% said they were prioritizing experiences as gifts for other people, compared with 27% who planned to favor physical goods. The survey included approximately 4,660 U.S. adults aged 18 and older and was designed to represent the broader consumer population.

Michael Brown, Visa's principal U.S. economist, told CNBC that higher travel prices, weaker consumer sentiment and a focus on value help explain the difference between what people hope to receive and what they intend to purchase. Consumers also face competing demands on their budgets, with spending on their own travel potentially leaving less money available for gifts.

Those pressures could also influence where people celebrate. Brown said Visa expects more consumers to spend the holidays closer to home because of increasing airfares and broader inflation. Consumer prices climbed 3.7% in September from a year earlier, with surging energy costs contributing to the increase. Airline fares rose more than 22% over the same period, according to the consumer price index.

Airlines have raised ticket prices this year as the war in the Middle East increased their fuel costs by billions of dollars. Industry executives have said fares are likely to remain elevated even if fuel prices decline. Brown said consumers' desire to travel and enjoy experiences is running up against rising prices and economic uncertainty, requiring them to make more deliberate spending choices.

The divide is also evident across income groups. Only households earning more than $200,000 increased spending on trips departing between Nov. 1 and early next year compared with the corresponding period spanning 2025 and 2026. Many other income groups reduced travel spending. Brown pointed to stock market gains over the past several months as one factor supporting confidence and spending among affluent households that own equities.

Shoppers with lower incomes are putting greater emphasis on affordability. Visa's October consumer survey found that roughly one-third of people earning less than $100,000 planned to choose cheaper brands or stores for holiday gifts. Visa forecasts holiday sales will increase 4.5% from a year earlier, but expects growth of just 1.1% after accounting for inflation, below the 1.3% inflation-adjusted increase recorded during the 2025 holiday season.

Brown said a shift toward physical presents and away from travel could support retailers during a period of spending pressure. He also cautioned that higher anticipated spending may reflect consumers' familiarity with elevated prices. In his assessment, expectations about inflation have weighed heavily on shoppers' thinking this season, making price perceptions an important consideration when interpreting their holiday budgets.