Confidence in the Chaos:
Why Consumers Keep Spending When the World Shakes
In a world where tariff wars, inflation surges, and geopolitical instability dominate headlines, one trend defies the narrative of gloom: consumer spending—particularly on travel—remains robust. What’s fueling this phenomenon? And what does it mean for brands aiming to connect with today’s high-intent audiences.
According to the latest data research by EternityX1 on the past quarters’ travel trends – markets like China, Malaysia, and Taiwan have demonstrated surprisingly resilient consumer confidence in 2025 – even amidst a storm of escalating trade tensions and economic policy shifts2. Despite a baseline 10% U.S. tariff on Chinese imports and retaliatory duties climbing as high as 245%, Chinese consumers are not retreating, they’re recalibrating.
Cautious Optimism, Not Panic
What’s notable is the emergence of what experts’ term “cautious optimism.” In China, consumer confidence has ticked upwards, even as tariffs and inflation threaten everyday purchasing power. Rather than a wholesale pullback, consumers are becoming more selective, investing in experiences and emotional value over material goods.
Travel as a Counter-Cycle Investment
One of the clearest reflections of this optimism is the resurgence of global travel. As the UNWTO reports3, international tourism receipts reached US$1.6 trillion in 2024—a 3% increase over 2023, despite ongoing economic headwinds. Travel is not just rebounding; it’s accelerating. It signals a consumer psyche that prioritizes escape, exploration, and joy in moments of uncertainty.
Implications for Brands
This resilience offers a unique opportunity for advertisers. Rather than retreating with the markets, brands must lean into emotional connection, targeting consumers who are choosing to spend on things that matter to them. Digital travel ads—already comprising 78% of total travel ad spend—offer high engagement, especially when personalised to intent4.
When chaos rises at the top, it’s the movement on the ground that defines recovery. The story of 2025 is not one of consumer withdrawal, but of emotional re-prioritisation. For brands, the mandate is clear: meet consumers where their optimism lives.
Source: EternityX1, Trading Economics, IMF, Ipsos2, UNWTO World Tourism Barometer (Jan 2025)3, eMarketer4, WARC, China Daily, Skyscanner, McKinsey, American Express 2025 Global Travel Trends Report.
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