Luxury spending shifts to experiences and inheritourism

Luxury spending is shifting toward experiences over goods this year, with personal luxury sales projected to reach between 365 billion euros and 373 billion euros ($413.6 billion to $422.7 billion).

After two years of declines, growth in luxury goods is expected to land between 1% and 4%, according to a report from Bain & Co. and Altagamma. But experiences—travel, dining, and events—are outpacing that, with projected growth of 3% to 7%. The divergence shows a broader realignment in consumer priorities, where intangible value often outweighs material ownership.

Bookings in dining, leisure, and entertainment are up about 30% so far in 2026. Claudia D’Arpizio, a senior partner at Bain, said the trend reflects a demand for what money can’t easily buy: time, access, and meaning. This shift is particularly pronounced among high-net-worth individuals, who are redirecting budgets from luxury handbags and watches to curated, memory-driven investments. The “less-but-better” philosophy extends beyond products, as discerning travelers seek out exclusive, high-touch services that align with their values.

The U.S. has reclaimed its spot as the top market for luxury growth, a position it last held in 2021. The report attributes much of that to aspirational buyers, a demographic less concerned with legacy brands and more focused on status through shared experiences. These consumers often prioritize social media-worthy moments, fueling demand for VIP access, private events, and destination-specific activities that signal cultural capital rather than ownership of high-end goods.

Meanwhile, geopolitical tensions in the Middle East continue to weigh on sales. Dubai, once one of the fastest-growing luxury markets, has yet to rebound as tourism struggles amid regional instability. The city’s retail sector, heavily dependent on international visitors, has seen prolonged softness, with high-end boutiques and hotels reporting lower foot traffic. The report suggests that a resolution to the Iran conflict could trigger a swift recovery, as Dubai’s infrastructure and reputation as a global hub remain intact.

Wealthy consumers are increasingly prioritizing trips over tangible goods. Travel to nontraditional, less crowded destinations is up 20%, with demand rising for immersive, slow-travel experiences tied to local traditions. These journeys often involve extended stays, deep cultural engagement, and hands-on activities like artisan workshops or heritage tours. The appeal lies in the depth of connection, with travelers favoring authenticity over the superficial allure of crowded tourist hotspots.

The report also highlights the rise of “inheritourism,” where affluent families travel together and younger generations adopt their parents’ preferences. This multigenerational trend is reshaping the luxury travel industry, as providers tailor offerings to groups with diverse age ranges but shared interests. Cruises, fine dining, and fine arts are all seeing renewed interest under this trend, with cruise lines expanding their experiential itineraries—think private island excursions, chef-led culinary programs, and onboard art auctions—to cater to these discerning groups. Fine dining, in particular, has benefited from a surge in private bookings, where families reserve entire restaurants for bespoke meals.

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D’Arpizio noted that spending isn’t just increasing—it’s changing. Consumers are chasing moments that feel personal, not just premium. This evolution is evident in the fine arts sector, where demand for exclusive gallery tours, artist meet-and-greets, and private viewings has climbed alongside traditional sales. The shift reflects a broader cultural movement toward experiential wealth, where the most coveted assets are no longer objects but the stories and memories they enable.

If stability returns to the Middle East and demand in China strengthens, luxury goods sales could see stronger growth this year. For now, the focus remains on experiences over ownership, with brands and service providers adapting to a setting where emotional resonance often outweighs tangible value.