Luxury spending rebounds in 2026, driven by experiences and intergenerational travel
A new study shows luxury spending is set to recover this year, driven more by experiences than by luxury goods.
According to a Bain & Co. and Altagamma report, after two straight years of declines, luxury goods sales are expected to grow 1% to 4% in 2026. Personal luxury goods sales are forecast to reach between €365 billion and €373 billion ($413.6 billion to $422.7 billion) this year.
Tensions in the Middle East continue to weigh on sales. Dubai in the United Arab Emirates was once one of the fastest-growing luxury markets before the Iran war, but its heavy reliance on tourism has yet to show signs of recovery. The report says luxury sales could grow this year if the Middle East stabilizes and demand from China strengthens.
In the U.S., growth is leading for the first time since 2021, the report said. The U.S. market's growth is being driven largely by aspirational consumers.
Experiences are growing faster than luxury goods
Wealthy consumers around the world are adjusting their priorities and spending. Travel, events and dining experiences are becoming more important than buying status-signaling goods. The report says luxury goods sales are expected to rise 1% to 4%, but experiences are likely to grow 3% to 7% this year. Dining, leisure and entertainment bookings are up about 30% this year.
Claudia D'Arpizio, senior partner at Bain & Co., said experiential luxury is showing resilience in categories that offer what money cannot easily replicate: time, access and meaning. She added that luxury is increasingly about how people live, not just what they own.
More travel, including immersive and intergenerational trips
Travel to nontraditional, less crowded destinations is rising. "Immersive roaming," a customized slow-travel experience rooted in exploration and tradition, is also becoming more popular. The report shows travel to nontraditional destinations rose 20%.
The report also points to the rise of intergenerational travel: wealthy families traveling together, with Gen Z increasingly embracing their parents' tastes and preferences in travel.
First-time buyers, fine dining, and the growth of art
In particular, cruises are attracting many first-time buyers and repeat customers. Upscale dining and gourmet spending are being driven by a "less but better" mindset, and the art market is also returning to growth.
D'Arpizio said consumers are not just spending more; they are spending differently, looking for moments that feel more personal and authentic.
