Gen Z and Millennials reshape summer spending habits with important implications for UK retailers

Gen Z and Millennials are saving up and spending smart to afford their summer experiences, according to new research from American Express involving 2,000 Brits. This finds that 58% of Gen Z and Millennials in the UK are prioritising spending on experiences over physical products this summer, by embracing points and perks.

Social media is driving demand for experiences among younger consumers, with 43% agreeing that social content inspires their choice of summer experiences, such as music festivals, trips to the theatre and meals out.

While 47% want to visit a destination or attend an event immediately after seeing friends or influencers post content on social media, Gen Z and Millennials focus on quality over quantity. Three in five prefer to do a few things well rather than pack in lots of cheaper experiences (60%). Millennials and Gen Z are also spending responsibly, with 73% planning ahead to afford the experiences they want.

61% of Millennials tend to spend more on experiences if they can offset the cost using rewards and discounts, this increases to 67% among Gen Z consumers. This group is particularly eager for added benefits, with 48% believing that discounts via loyalty schemes deliver the best value, followed by being able to redeem points and rewards against the cost of tickets (36%). 

The two generations also have an appetite for enhanced experiences, with a fifth agreeing that getting exclusive extras, such as VIP access or discounted merchandise, add value.

The appetite for maximising value does not stop at experiences. Young consumers are also more likely to decide how they pay based on the perks on offer. Seven in ten are influenced by better rewards or cashback than other ways to pay, while around two-thirds are more likely to choose how they pay based on sign-up bonuses and welcome offers (66%) or retailer-specific incentives (63%). 

Dan Edelman, UK General Manager, Merchant Services, says: “Our research shows highlighting the value and added benefits that younger consumers are seeking remains important for retailers, and can help drive repeat spend. Gen Z and Millennials say that rewards such as earning points or cashback influence how they choose to pay and where they choose to spend. This will be a key battleground for retailers as they look to stand out against competitors.”

2025 RTIH INNOVATION AWARDS

Loyalty and rewards will be a key focus area at the 2025 RTIH Innovation Awards.

The awards. which are now open for entries, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

For further information on the 2025 RTIH Innovation Awards, please fill in the below form and we will get back to you asap.