Luxury spending now driven by experiences and 'inheritourism'

Dive Deeper:

• The report forecasts 2026 personal luxury goods sales at 365–373 billion euros, reflecting a cautious rebound after consecutive declines, while overall experiences are projected to grow 3–7% as travelers prioritize moments over ownership.

• A shift in consumer priorities is evident as travel, events and dining experiences become more important than owning high-status goods, signaling a broader change in what defines luxury spend.

• The United States emerges as the top growth engine for luxury goods for the first time since 2021, driven largely by aspirational buyers who are expanding their discretionary budgets.

• Geopolitical tensions, particularly in the Middle East, dampen regional demand; Dubai’s recovery remains uncertain as the market heavily depends on tourism and broader regional stability.

• Travel to nontraditional, less crowded destinations grows by about 20%, aided by what the report calls immersive ‘wayfaring’ experiences that emphasize discovery and tradition.

• A notable trend is ‘inheritourism,’ where wealthy families travel together and younger generations adopt their parents’ tastes, fueling demand for familiar, heritage-rich itineraries.

• Cruises, fine dining, and fine arts show renewed strength as part of a broader ‘less-but-better’ mindset, with consumers seeking personal, authentic moments rather than sheer volume of spend.