Luxury Spending Meets Experiences: The Legacy Travel Trend
A new study shows that luxury spending is set to rebound this year, and the driver is experiences, not goods.
According to a report from Bain & Co. and Altagamma, luxury sales are expected to grow 1% to 4% in 2026 after two straight years of declines. Personal luxury goods sales are expected to reach between 365 billion euros and 373 billion euros ($413.6 billion to $422.7 billion) this year.
Tensions in the Middle East continue to weigh on sales. Dubai in the UAE was once one of the fastest-growing luxury markets in the world before the war with Iran, but its heavy reliance on tourism has not yet shown signs of recovery. The report says luxury sales could grow this year if the Middle East stabilizes and demand in China strengthens.
The report says the U.S. is once again the leading country for luxury growth for the first time since 2021. U.S. growth is being driven largely by aspirational consumers.
Experience-based luxury is growing faster than status goods
The report says that while luxury goods sales are expected to rise 1% to 4%, experience-based spending could grow 3% to 7% this year. Bookings for dining, leisure and entertainment are up about 30% this year.
“What we are seeing this year in experiential luxury is resilience in categories where money cannot easily replicate what matters most: time, access and meaning,” said Claudia D’Arpizio, senior partner at Bain & Co. “Luxury is increasingly about how people live, not just what they own.”
Slow travel, smaller crowds and legacy travel
Travel to off-the-beaten-path destinations is growing. Custom slow-travel experiences built around discovery and tradition, also known as immersive travel, are becoming more popular. The report says travel to nontraditional destinations grew 20%.
The report also points to rising intergenerational travel: wealthy families are traveling together, and Gen Z is inheriting parents’ travel tastes and preferences.
Where demand is flowing: cruises, dining and the arts
Cruises, in particular, are drawing many first-time buyers and repeat guests. Fine dining and gourmet food are benefiting from a “less is more” mindset, while the arts are also returning to growth.
“Consumers are not just spending more; they are spending differently, seeking moments that feel more personal and authentic,” D’Arpizio said.
