We’re still a little ways away from the second 10 days of July, and if you’re one of those people who haven’t arranged to go on vacation (yet), the latest research Consumer Goods Retail Research Institute (IELKA) Apart from frustration, it can also provide a small comfort that you are not alone.
According to research on the impact of price increases on the consumption habits of Greeks, Only 1 in 2 will take a vacation in the summer of 2024 If you’re wondering why, here are the reasons Increased cost of tickets and accommodationThis will keep many people in the city or move them to more economical solutions (villages, country houses, etc.).
As listed in Figure 1, there have been significant recent changes in consumption habits in various behavioral areas, often attributed to product and service appreciation.
Firstly, there is a clear tendency of consumers to save money for purchasing basic goods and services and secondly for money management. There seems to be a lot of pressure to reduce the cost of basic services and to reduce the cost of basic goods.
Specifically:
- 71% (75% in 2023) of the public report canceling entertainment expenses such as food, vacations, and travel.
- 55% (54% in 2023) say they have cut back on food and grocery shopping overall.
- 49% (48% in 2023) say the public has postponed maintenance and repairs, e.g. At home or in the car.
- 42% (49% in 2024) say they have switched product brands.
- 27% say they used money from their savings to cover their purchases.
- 27% (32% in 2024) have deferred paying bills or stopped paying their obligations.
- 16% (17% in 2024) say they have increased their working hours or found a second job to supplement their income.
Only 3% of the public say they have taken no action To deal with inflationary pressures.
Figure 2 reflects how drastic is the shift in the buying public to save money.
This figure captures the factors influencing consumers over the past 4 years regarding food choices. The cost of money remains the main criterion (57%), but especially in recent measurements the intensity is decreasing (from 69% in 2023) and we are at the level of 2022. At the same time, quality is the main criterion for 27%. consumers, but increases from 16% in 2023. So last year recorded a gradual decline between the two main criteria ending in “scissors”.
The necessary reductions in household spending are reflected in Figure 3, where 1 in 2 consumers declare they will not take a vacation in 2024, while 1 in 3 declare they will, but 6 in 10 consumers expect spending to be cut this year compared to last year, and 4 in 10 by 50%. They also announce that more will be reduced. The main reasons are reduced disposable income due to price increases, but mainly increased expenses on tickets (50%) and accommodation (48%).
The latest IELKA survey was carried out during the week of June 23-29, 2024 and concerns, among other issues, the perceived effect of rising prices on consumption habits in Greece.