Valentine’s Day spending shifts away from material goods

Brits are investing in experiences over material goods, as new Mastercard data shows sentimental spending has increased by 11% since 2015, with the number of transactions up by 23% during the Valentine’s Day period.

The company’s Love Index, which analyses credit, debit and prepaid transactions during the Valentine’s period in more than 200 territories, reveals that dining out represents 25% share of spend in the UK, and 60% share of transactions in 2017. Romantic getaways via air or train rose significantly as the number of transactions increased by 31% in 2017, accounting for 19% of total spend. Hotel stays represented 38% share of spend. Conversely, money on traditional Valentine’s gifts such as flowers decreased by 22%, and the number of transactions decreased by 8%. Similarly with jewellery, spend decreased by 32% and transactions decreased by 12% (vs. 2015). 

The trend for online shopping continues with a 169% increase in the number of e-commerce transactions from Valentine’s Day 2015 to 2017. Scott Abrahams, Head of Business Development, Mastercard UK & Ireland, says: “The data supports the rise of the ‘experience economy’ as happiness clearly comes from creating lasting memories, instead of purchasing material goods.”