70% of Americans Still Feeling Inflation’s Impact on Holiday Spending, Givex 2024 Holiday Gift Card Survey Shows

Consumers continue to prefer credit card and restaurant gift cards while seeking more promotions and loyalty rewards during the holiday season.

Givex, the global cloud-based customer engagement and business insights platform, has unveiled the results of its 2024 Holiday Gift Card Survey, offering a snapshot of American consumer shopping behaviors ahead of the holiday season. The data comes from a survey commissioned by Givex of over 1,000 Americans, focusing on how inflation, shopping habits and dining trends will shape the holidays this year.

According to the Givex 2024 Holiday Gift Card Survey, inflation remains a significant factor for 70% of respondents, though this is a slight decrease from 2023. Credit card gift cards continue to dominate as the most popular gift card choice for the holidays, favored by 70% of respondents — up 6% from last year—followed by restaurant gift cards at 46%.

“Despite slight improvements in inflation’s impact on holiday spending, consumers are still cautious,” said Brittain Brown, President at Givex. “Businesses that leverage gift cards, loyalty programs and promotions can create value for customers, helping them navigate tighter budgets while still offering thoughtful gift options. Our survey shows that customers are ready to engage with brands that deliver deals, rewards and convenience this holiday season.”

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Key Insights from the Givex 2024 Holiday Gift Card Survey:

• Rising Popularity of Gift Cards: Credit card gift cards remain the top choice for 70% of respondents, with restaurant gift cards coming in second at 46%.
• Holiday Spending Plans: On average, Americans plan to spend $136 on gift cards this holiday season. Non-essential spending will focus on gifts, with an average spend of $245.
• Inflation’s Influence on Shopping: 70% of Americans report that inflation will impact their holiday shopping.
• Early Shoppers on the Rise: 44% of Americans plan to start their holiday shopping earlier, with only 22% intending to complete all their shopping on Black Friday.
• Cautious Dining Trends: With only 39% of Americans feeling they’re getting good value for dining out, 40% plan to dine out less often this holiday season, and 42% will seek dining promotions more frequently than last year.
• AI and Loyalty Programs: While 75% of Americans are not comfortable using AI to assist with their shopping, 29% plan to make more holiday gift-buying decisions based on loyalty programs and reward points.
• Increased Grocery Spending: 58% of Americans expect to spend more on groceries this season compared to last year.

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Gift Card Sales Data from Givex:

• During the 2023 holiday season (Black Friday through Christmas Eve), total gift card value sold was up 12.36% from the previous year.
• The total quantity of gift cards sold increased by 8.85%.
• 39% of all gift card sales for the year occur between Black Friday and Christmas Eve, highlighting the significance of this period for businesses.

“As we head into the 2024 holiday season, businesses can harness the power of gift cards, along with well-targeted loyalty and promotional campaigns, to meet customer needs during an economically challenging time,” said Brown. “Gift cards remain a strong choice for shoppers who want to provide flexibility to their loved ones while navigating their own budgets.”