American Express Israel today summarizes the analysis of its customers' spending data during the summer months of 2024, compared to the same period last year. The data reveals that this summer marked a shift in the consumption habits of the Israeli public, who chose to invest more in domestic activities and home upgrades, rather than flying abroad for vacations.
In the data examined between July 1 and August 24, there was a 5% increase in the number of transactions made in Israel, with the average transaction rising by 2.6%. Almost all consumption sectors saw an increase in turnover, with the tourism and leisure sector experiencing an increase in turnover due to a rise in the average transaction size, but a 2.6% decrease in the number of transactions.
The prominent trend was a tendency to invest in home improvements. There was an increase in the average transaction, a 4.1% increase in the number of transactions, and an 11% rise in transactions in the flowers and plants sector. In contrast, the entertainment sector saw a 6.6% decrease in hotel transactions, while museums recorded a 13.1% drop in turnover and a 7.2% decrease in the number of transactions. Additionally, clubs and pubs experienced a 6.2% decline in transactions, indicating a preference for more relaxed home-based entertainment rather than going out.
However, there was an increase in leisure activities offering more relaxed and quiet experiences: Theaters and cultural events saw a 6.5% increase in turnover and a 4.9% increase in the number of transactions, while spas experienced a 16% rise in turnover and a 6.3% increase in transactions. Beauty and cosmetic salons showed a significant increase of 10.4% in turnover and 2.6% in the number of transactions.
The restaurant and café sector also grew, with a 9.2% increase in turnover and a 7.5% rise in the number of transactions, and even fast food recorded a 7.5% growth in turnover.
The aviation sector overall recorded a 12.8% increase in transaction turnover, but a 3.9% decrease in the number of transactions. In fact, there was a sharp 26% rise in bookings from Israeli airlines, with significant growth in turnover, while the number of transactions from foreign airlines declined. Foreign airlines experienced a 24.7% drop in the number of transactions, likely due to flight cancellations by foreign airlines because of the political situation in Israel.
Key Trends
This year, Israelis preferred to invest in more relaxed entertainment and home improvements over flights and vacations abroad. When they did choose to travel abroad, there was a clear preference for booking flights with Israeli airlines, resulting from the limited availability of foreign airlines that canceled flights due to the situation.
Meni Cohen, CEO of American Express Israel: "As the data suggests, the uncertainty and complexity of the period caused many customers to stay in Israel and channel their spending mainly into restaurants, cafés, and home upgrades. American Express continues to adapt its value propositions for customers in a changing reality, with hopes of a return to normalcy and better days ahead."