New data reveals affluent millennials and Gen Z refuse to cut travel budgets – and are using AI as a major research tool.
The economic headwinds that were supposed to ground luxury travel in 2026 haven’t shown up. Klook’s Travel Pulse 2026 study finds 88% of younger travellers maintaining or expanding their travel budgets this year, whilst cutting back elsewhere.
What’s getting axed isn’t trips – it’s shopping. Material purchases are taking the hit so travellers can spend more on the ground: cooking classes, exclusive site access, cultural experiences that don’t come shrink-wrapped.
Asia Pacific travellers are driving this shift hardest, nearly twice as likely to pump more money into experiences than their European and American peers. Two-thirds now build multi-stop itineraries, using major cities as jumping-off points rather than final destinations.
Japan’s second-tier cities – Yokohama, Nagoya, Hiroshima – are picking up travellers tired of Kyoto‘s crowds. Norway’s Tromsø, Australia’s Cairns, and the UAE’s Sharjah are gaining ground with people who want authenticity over Instagram moments. The draw for many is local encounters, cultural depth, and actual elbow room.
What’s pulling people to these lesser-known destinations tells its own story. Just over two-fifths cite genuine local experiences as the main draw, whilst nearly 40% are chasing undiscovered spots that haven’t been flattened by mass tourism. Cost still matters, mentioned by more than a third, but it’s sharing space with deeper motivations around cultural substance and meaningful access.
How people plan has shifted too. Social media still plants the seed – 80% say it influences where they go – but 91% now run those dreams through AI tools to check costs, logistics, and time before booking.
The pattern is becoming clear, with Instagram sparking ideas, algorithms crunching numbers, and wallets opening wide. For luxury brands, being visible still matters, but delivering genuine substance is what actually converts browsers into buyers.
