The entertainment industry is booming again, with concerts and live events fueling growth. This surge is also boosting travel, with many consumers booking trips to attend these events. From Diljit Dosanjh’s sold-out concerts to Coldplay ticket mania, the “experience economy” is shaping how people spend. Yet, while these experiences create lasting memories, they often come at a cost to financial well-being.
The Rise of the Experience Economy
Between 2019 and 2023, the number of people taking more than three trips annually jumped by 25%. Family travel bookings surged by 64%, while solo trips rose by 23%. International travel also saw a 12% increase, surpassing pre-COVID levels by early 2024. This shift shows that Indian consumers are focusing more on experiences, often driven by the fear of missing out (FOMO). However, the long-term impact of this trend on financial security is concerning.
Impulsive Spending and Financial Risks
The thrill of live events is undeniable, but they often lead to impulsive spending. For example, Coldplay tickets priced at ₹3,000 are being resold for as much as ₹9 lakhs. Beyond ticket costs, travel, accommodation, and dining add further financial strain, especially for international trips. This “once-in-a-lifetime” mindset can lead to major financial setbacks.
Travel also comes with its own risks, such as cancellations, delays, and lost belongings. Many consumers overlook the importance of planning for these potential costs by securing travel insurance or setting aside savings for emergencies.
Inflation’s Impact on Travel and Entertainment
As inflation continues to rise, the cost of travel and entertainment is increasing. Consumers’ spending habits on these experiences, without financial planning, could jeopardize long-term goals. While indulging in special events is exciting, the lack of a balanced approach can affect savings, retirement plans, and investments.
Finding Balance Between Spending and Saving
A smart financial plan allows for occasional splurges without neglecting long-term goals. Many people spend heavily on trips or events but overlook crucial investments. For example, a family may spend on a concert but skip income protection plans or building an emergency fund. Frequent travelers might book high-end packages without insuring their trips against cancellations or health issues.
Enjoy Memorable Experiences Without Financial Consequences
The key is balance. Smart financial tools—like travel insurance, income protection, and savings for spontaneous trips—can help consumers enjoy experiences without risking their financial future. Before spending impulsively, it’s important to ask: Are these experiences worth the potential financial fallout?
By planning carefully, individuals can savor life’s special moments without compromising future stability. The goal is to enjoy unforgettable experiences while ensuring long-term financial security.
In a world dominated by FOMO, it’s crucial to rethink how we approach once-in-a-lifetime events. With financial planning and foresight, consumers can have the best of both worlds—enjoying life’s thrills while protecting their future.