As the world continues to grapple with the fallout from Covid-19, Irish consumers prove no exception with 47% having lost an average of almost €700 from cancelled plans this year.
For many people around the world 2020 was going to be a big year, with plans to celebrate key life events such as weddings, anniversaries, birthdays and other major milestones.
And that was no different for Irish people, with 77% of the population (vs 67% globally) saying they had major purchases or life events planned. However, as new challenges and priorities emerged with the Covid-19 crisis, over 80% here in Ireland were forced to cancel or postpone those plans.
That’s according to a new global study released from digital bank N26, aimed at highlighting the impact of Covid-19 on consumer activity and how people’s lives have been affected by the financial upheaval thus far.
From postponed parties to cancelled holidays, Irish consumers lost out on average almost €700 according to the latest data from August of this year, and that’s not all that’s changed.
For the full details just read on...
Irish consumer impact
The global study was carried out on behalf of N26 by Sapio Research in August of this year and surveyed a nationally representative sample of 1,005 Irish consumers.
According to the data, over 80% of those surveyed who had plans had to cancel or postpone them due to the ongoing spread of the coronavirus.
The research also highlighted the stark losses incurred by Irish consumers with €694.49 on average having been lost due to the nationwide restrictions put in place. That being said, Irish people had saved in and around €1896.42 for plans that ended up cancelled or postponed.
The majority of Irish people who cancelled plans were planning trips abroad with 37% of respondents preparing for vacations.
All the while, buying a new car (24%), starting a new job (23%), paying off debts (20%) and moving house (16%) were also items on the top of Irish people’s agendas.
Interestingly, 58% of the Irish consumers surveyed said they would keep the money they saved from cancelled plans to spend on the same plans sometime in the future.
For those saving for something else, the most popular plans were for home improvements (28%) and paying off outstanding debt (23%), with two out of five having made a new or unexpected purchase during lockdown.
Director of Growth at N26, Kelly McConville commented on the study:
“Our lives have been transformed since the start of the Covid-19 crisis and as major life plans have been cancelled or postponed, it’s left many of us feeling like life has been put on hold. But as plans and our lives have changed, it’s interesting to see how people have adapted and developed new digital habits. Particularly the uplift in using card over cash and a shift towards mobile or online banking.
It’s clear that people are starting to realise the benefits and increased flexibility of digital banking, and this is probably why so many are planning to continue these habits post-Covid.”
Impacted travel plans
As part of the global study Irish people’s travel plan woes were also highlighted with 64% or almost two thirds of Irish consumers having had some sort of international trip planned.
However, a mere 10% of these said they would be travelling regardless of the ongoing global pandemic, with the majority of would-be travellers citing the following reasons for not travelling.
- Foreign travel would increase the number of Irish Covid-19 cases - 56%
- Personal health worries, or that of a loved one - 44%
- Concerned about getting locked down in a foreign country - 32%
The research from N26 showed a clear trend towards Irish consumers following Irish government public health advice and opting for a holiday here in Ireland instead.
Many people said they were either considering or have already taken a staycation in Ireland this year coming in at 69%, with almost one third (29%) never having done it before.
Half of those taking a staycation for the first time in Ireland are doing so to avoid the risk of increasing Covid-19 cases in their home country (50%) or to avoid getting locked down abroad (52%).
When it came to staycationing in Ireland the research revealed that Irish people were looking to get back to their roots with 29% favouring “somewhere rural”, with the beach (25%), and Munster (22%) close behind.
City breaks are the least likely option for consumers with just 16% planning a trip of this kind.
Interestingly, one third of those who have gone on staycations before are driving there this year, preferring to avoid public transport.
Stay in touch
What do you think of the latest data released from N26? Have you lost out on money due to the pandemic? Have your travel plans been affected? We’d love to hear from you.