Robust Demand Signals — If you’re like the average American consumer, you live in a household that makes around 85k, and at that income level, you’re really feeling the squeeze right now.
Gas, milk, eggs, and other groceries have all seen double-digit percentage price increases even just this calendar year. In the wake of inflation, consumer sentiment is literally at an all-time low.
In other words, things aren’t getting any cheaper, and the money in your pocket isn’t growing any faster than it has in the past.
This might cause you to pull back in some areas of your spending. Even low-budget friendly spots like Mickey D’s and Wally World are noticing a softening consumer.
But might I be able to blame this softening on the news and its effect on consumers as opposed to the actual state of the average household’s finances?
Case and point, demand for travel, concerts, and even a trip to the pub for a pint or six is up and way up. It would appear that airlines, major hotel brands, and other hospitality industry components are somewhat insulated from limp consumer demand.
Even in the face of rising JP-8 prices pushing ticket prices to the f*cking moon, airlines are even profitable lately. If you know the history of the industry as a whole, this is like seeing a unicorn or smoking a stogie with Big Foot.
Even Ticketmaster, the literal king of bull$hit fees, is poised to rake in strong profits this summer as consumers lose their minds over the opportunity to finally get back into a sweaty, damp concert venue just like good ol’ 2019.
To me, personally, some of this doesn’t make sense. In my eyes, we shouldn’t see strong demand for what is traditionally perceived as a luxury good and softening demand for name brand essentials.
No one should be trying to save money on Heinz Ketchup and Colgate Toothpaste by switching to private-label goods only to shoot their shot on $37 of ticket fees for a concert. But hey, what the hell do I know?
Does this mean that hospitality is the next smart move? No clue. It’s just something to ponder, hence why it ended up in today’s Thought Banana.
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