Luxury spending now driven by experiences and ‘inheritourism’

Luxury spending is expected to rebound this year, driven by experiences rather than luxury goods, according to a new study.

Bain & Co. and after two years of decline, luxury goods sales are expected to grow between 1% and 4% in 2026, according to Altagamma’s report. Personal luxury goods sales are expected to reach between €365 billion and €373 billion ($413.6 billion to $422.7 billion) this year.

Tensions in the Middle East continue to negatively affect sales. Dubai, United Arab Emirates, was one of the world’s fastest-growing luxury markets before the Iran war, but it relies heavily on tourism and is yet to show signs of recovery. The report stated that luxury goods sales may increase this year if the Middle East stabilizes and demand in China strengthens.

According to the report, the USA became the leading country in luxury goods growth for the first time since 2021. Growth in the U.S. is largely driven by eager consumers, he said.

At the same time, the priorities and spending of affluent consumers around the world are changing. Travel, events and dining experiences have become more important than purchasing status goods for show, the report said. The report states that while luxury product sales are expected to grow between 1% and 4%, experiences are on track to grow between 3% and 7% this year. Bookings in the dining, leisure and entertainment industries are up nearly 30% this year.

“What we’re seeing in experiential luxury this year is durability, concentrated in categories that offer something money can’t easily replicate: time, access and meaning,” said Claudia D’Arpizio, a senior partner at Bain & Co. “Luxury is increasingly about how people live rather than what they own.”

Trips to non-traditional and less crowded destinations are on the rise. “Immersive travel” or bespoke, slow travel experiences based on discovery and tradition are also becoming increasingly popular. According to the report, travel to non-traditional destinations increased by 20%.

The report also touches on the rise of “heritage tourism,” where wealthy families travel together and Gen Z adopts their parents’ travel tastes and preferences.

Cruises in particular attract first-time buyers as well as repeat customers. Fine dining and gourmet dining are being driven by a “less but better” mentality, and fine arts are starting to grow again.

“Consumers aren’t just spending more; they’re spending differently in pursuit of moments that feel personal and authentic,” D’Arpizio said.