MW These are the 'affordable luxuries' even people trying to save money can't resist splurging on

By James Rogers and Nicole Lyn Pesce

Consumers are still seeking out these types of 'affordable' luxuries even in a cautious spending environment

Live Nation's Brooklyn Paramount venue in New York City.

The last few months have not been the easiest for consumers, with President Donald Trump's trade war and concerns about inflation casting a shadow on spending. However, there are places where consumers are still willing to splurge and open their wallets - whether it's a trip to the movies, a concert, or even a cruise.

"There's definitely been a migration toward the public seeking out more premium experiences, and it's not just at the movies," Richard Gelfond, chief executive of high-end movie-theater operator Imax Corp. (IMAX), told MarketWatch. "It's at concerts, it's at sporting events, it's at all kinds of out-of-home experiences."

Gelfond called moviegoing an "affordable luxury" at a time when many consumers are watching their wallets. Imax recently delivered both its highest-grossing second quarter and highest-grossing July ever at the North American box office this year.

These sentiments were echoed by Shawn Robbins, director of movie analytics at Fandango. Robbins noted that bookings for premium screens such as Imax have been accounting for a larger share of Fandango's ticket sales. He suggested that this is because seeing a movie in 3D or on an Imax screen "separates even more the moviegoing experience versus the streaming-something-at home experience."

"Going to the movies tends to be a form of escapism," Sean Gamble, CEO of movie-theater operator Cinemark Holdings Inc. $(CNK)$, told MarketWatch. "And people, when they get in that [movie-theater] environment, tend to say, 'OK, this is my moment to indulge.' They may seek to treat themselves a little more in that instance than they would in other areas."

Speaking during a conference call to discuss AMC Entertainment Holdings Inc.'s $(AMC)$ second-quarter results on Monday, CEO Adam Aron said that moviegoers are spending record amounts, but acknowledged that the broader industry box office is still well below prepandemic levels.

AMC's second-quarter revenue jumped 35.6% year over year to reach $1.398 billion and top Wall Street's expectations. But that was still well below the $1.506 billion revenue that the company amassed in the second quarter of 2019, before the COVID-19 pandemic hit.

Attendance was also 35% below the record second quarter of 2019, although AMC said that customers are spending more at the movies than they did previously. For the first time ever, consolidated admissions revenue per patron for AMC and its Odeon subsidiary topped $12, coming in at $12.14. Consolidated food-and-beverage revenue per guest also hit a record $7.95.

During the conference call, AMC was eager to explain that, despite significantly lower attendance than in the prepandemic era, the company's contribution margin in the quarter ending June 30 was just 4% below the same period six years ago. AMC's contribution margin per screen was actually 9% higher than the second quarter of 2019, it added.

"This all illustrates our conviction that the industry does not need to fully recover to prepandemic box office levels for us to achieve prepandemic levels of adjusted Ebitda," said AMC Chief Financial Officer Sean Goodman, according to a FactSet transcript.

Concertgoing is another area where consumers are seeking out experiences. Ticketmaster parent Live Nation Entertainment Inc. (LYV), which reported second-quarter results last week, is seeing growth in onsite spending across all venue types, with concession spending at large amphitheaters up by double digits. Global attendance at Live Nation events grew 14% year over year to 44 million fans, the company said, helping revenue jump 16% to $7.01 billion.

And in the cruise world, Royal Caribbean Group $(RCL)$ said that demand for cruises is accelerating when it reported its second-quarter results last month - albeit with consumers waiting until the last minute to book their vacations.

"We continue to see engaged and excited consumers," said Royal Caribbean CEO Jason Liberty during a conference call to discuss the results. Roughly 75% of consumers intend to spend the same or more on leisure travel over the next 12 months, he added.

Rival Norwegian Cruise Line Holdings Ltd. $(NCLH)$ also cited "strong close-in demand" and onboard spending when it reported second-quarter results last month.

"Demand has rebounded across all three of our brands, with bookings now ahead of historical levels in recent months and continued strength in onboard spend," said Norwegian CEO Harry Sommer said in a statement.

Even after a modest rebound in consumer confidence, though, some sectors are still seeing spending caution, while others are enjoying a boost.

"Leisure trends have held up reasonably well and [were] the surprise outperformer in [the second quarter], though calendar shifts helped, while business and group travel was generally softer," wrote BMO Capital Markets analyst Ari Klein in a recent note on the lodging industry.

"Leisure demand continues to be driven by the high end of the market, with luxury outperforming as the affluent consumer has shown few signs of cutting back, whereas lower-end hotels have faced more headwinds and increased price sensitivity," Klein added.

Tomi Kilgore and Bill Peters contributed.

-James Rogers -Nicole Lyn Pesce

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August 16, 2025 09:32 ET (13:32 GMT)

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