Foundation for Future Studies publishes new Europe study
Very few Europeans can afford to go on holiday.
Consumer spending in times of crisis
A holiday equals a trip. This equation is no longer true for most Europeans. Only a third of people (33%) have spent money on a holiday lasting at least five days in the past twelve months. This is the result of a recent representative survey conducted by the German BAT Foundation for Future Studies, in which over 12,000 people aged 14 and over in the ten European countries Austria, Finland, France, Germany, Italy, Poland, Russia, Spain, Switzerland and the UK were asked about their spending behaviour. „No industry has been spared from the economic and financial crisis - not even the travel industry. Many people are unsettled and simply don't know how the economic situation will develop in the future. As a result, many spent ‚the best weeks of the year’ at home,“ says Dr Ulrich Reinhardt, the foundation's tourism and Europe expert.
I'd rather go to a restaurant than the theatre.
Particular savings are being made in the cultural sector
When money gets tight, the question of what is important in life and what can be done without arises anew. The only things that most Europeans do not do without are „using a mobile phone“ (53%) and „eating out“ (54%). In contrast, citizens are increasingly restricting themselves, particularly in the area of culture. Only one in five people visited a theatre in the last twelve months and only one in seven went to a concert (13%), museum (14%) or theme park (16%). Hardly any Europeans spent money on cinema tickets (37%), short trips of 2 to 4 days (32%) or sporting events (18%). On the other hand, they are much more likely to spend money on leisure activities at home: Across Europe, magazines (48%), CDs/DVDs (43%) or books (42%) are very popular. Reinhardt's explanation: „People don't know how much they can afford to spend and tend to choose inexpensive products for their homes in times of crisis.
Finns and Swiss are the most consumer-oriented Europeans
Consumer spending in Europe paints a mixed picture. In Finland and Switzerland, people pay significantly less attention to their spending than in the rest of Europe. For example, three quarters of Finns and Swiss (74% each) are regular restaurant visitors and three out of five Swiss (61%) and more than half of Finns go on day trips (52%). In contrast, the inhabitants of Poland, Russia and Italy limit themselves in all areas. The majority of residents did not spend money on any of the twenty activities listed in the past twelve months. In an international comparison, Germans are surprisingly frugal: the majority of Germans only spend money on restaurant visits (65%), magazines (62%) and mobile phone costs (55%). „Pessimism and concern about the future are particularly pronounced in Germany. After all, if you have a lot, you can also lose a lot. The scepticism stems primarily from young senior citizens and retirees, who prefer to save their money rather than spend it,“ says Reinhardt from the BAT Foundation.
Divided consumers - divided Europe
Whether the oil crises in the 1970s, the US savings and loan crisis in the 1980s, the Asian crises in the 1990s or the dotcom bubble in 2000 - Europeans are now experienced in crises and yet their behaviour has changed. The fear of a loss of prosperity and anxiety about the future is more pronounced than ever before. There is a threat of a three-way split in consumer behaviour:
- Divisions between countries: Some countries are emerging stronger from the crisis, while others will continue to feel the effects for many years to come. The standard of living between the individual nations in Europe is only converging very slowly.
- Division within individual countries: In the future, there is a threat of society being split into high-income citizens and those at risk of poverty. The centre of society will live with the fear of slipping and will increasingly disintegrate.
- Division within the population: Consumers are just as much in control of saving as they are of spending money. What is spent at the weekend has to be saved again during the week. And if you want to go on holiday, you won't be able to afford a new car. The offers are accordingly: Cheap and top-of-the-range products and increasingly fewer mid-range offers.
Reinhardt: „We need to counteract this threefold division. A rethink is needed in politics and business, in the media as well as among individual citizens: from better framework conditions, long-term job security and a duty to inform to more initiative on the part of every European. Then the crisis can also become an opportunity.
Foundation for Future Studies publishes new European survey
Only a few Europeans still afford to take a holiday.
Consumer spending in times of crisis
Taking a holiday means travelling. This is no longer the case for most Europeans. Just a third of those asked (33%) spent money on a holiday of at least five days in the last twelve months. This is according to the latest representative survey conducted by the German BAT Stiftung für Zukunftsfragen, in which over 12,000 persons from the age of 14 and in the ten European countries of Austria, Finland, France, Germany, Great Britain, Italy, Poland, Russia, Spain and Switzerland were asked about their spending behaviour. “Not a single branch has been left unaffected by the economic and financial crisis - not even the travel industry. Many people are uneasy and simply do not know how the economic situation will develop in the future. As a consequence, many have spent ‘the most beautiful weeks of the year’ at home,” says Dr Ulrich Reinhardt, the foundation's tourism and Europe expert.
Visits to restaurants preferred over the theatre.
Spending is especially down in the area of culture
When money is tight, people start to ask the age-old questions once again: What is important in life? And what can I do without if necessary? The only areas where most Europeans don't cut on spending is “Mobile Phones” (53%) and “Eating Out” (54%). On the contrary, people are increasingly spending less in the area of culture. Case in point: in the last twelve months, only every fifth of those asked has been to the theatre and only every seventh has enjoyed a concert (13%), museum (14%) or theme park (16%) visit. Europeans hardly spent any money even on cinema tickets (37%), a short holiday trip of two or four days (32%) or a sports event (18%). However, much more money is now spent on domestic leisure offers. In all of Europe, magazines (48%), CDs/DVDs (43%) and books (42%) have gained in popularity. Dr Ulrich Reinhardt explains: “The people don't know how much they can continue to afford and in times of crisis, choose to spend money on lower-cost offers for home.”
Among Europeans, the Brits, Finns and Swiss are the happiest to consume
Consumer spending in Europe is sending mixed messages. In Great Britain, Finland and Switzerland, the people clearly pay less attention to the amount of their spending than in the rest of Europe. In 17 of the 20 areas in question, the Brits spend more money than the average European. The pound changes hands in uncertain times especially when it comes to books (+18 percentage points), computers (+17), restaurants (+16) and theatre visits (+17). In contrast, the Polish, Russians and Italians are holding back in all areas. The majority of them have not spent money in the last twelve months on any of the 20 undertakings listed. Compared internationally, the Germans are surprisingly frugal: the majority of them only afford eating out (65%), magazines (62%) and mobile phone costs (55%).
Divided Consumers - Divided Europe
Whether it was the oil crisis in the 1970s, the US savings crisis in the 1980s, the Asian crisis in the 1990s or the dotcom bust in the early 2000s - Europeans are now more experienced in crises than ever and yet show a change in behaviour. The fear of losing affluence as well as worries about the future are much more pronounced than in the past. The result is a possible threefold division in the area of consuming:
- Division among the countries: a few will ride the crisis out and end up stronger, while others will continue to feel the effects for many years. The standard of living between the individual European nations will only balance out very slowly.
- Division within the individual countries: in the future, society threatens to split into those who earn well and those who are on the verge of poverty. The middle class will live with the fear of slipping into poverty and increasingly dissipate.
- Division within the population: consumers are just as in control of saving as they are of spending. What is spent over the weekend has to be saved during the week. And if you want to take a holiday, you won't be able to buy a new car. Thus, the offers are as follows: cheap and expensive products, with increasingly fewer offers in the middle price range.
Dr Ulrich Reinhardt: “We need to counteract this threefold division. What is needed is a new way of thinking within politics and the economy as well as in the media and the minds of each and every person. From better conditions, long-term job security and the obligation to provide information to more pro-active behaviour of each European. Then the crisis can also be a time of opportunity.”
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