Global study shows dramatic shift in high-end spending as young affluent consumers prioritise travel and unique experiences over traditional status symbols.
A major shift in luxury spending patterns is emerging among affluent millennials and Gen Z, with traditional status symbols being replaced by luxury travel and experiential purchases, according to a new global study recently published.
The report, conducted by Assembly across 3,000 high-net-worth individuals and titled The New Codes of Luxe, highlights how affluent millennials and Gen Z are prioritising luxury travel and unique experiences over conventional status symbols like designer handbags and premium vehicles. It indicates that experience-focused luxury hospitality spending is projected to reach $391 billion by 2028, up from $239 million.
“The data reveals that spending on wellness, travel and experience-focused luxury is set to grow at over twice the rate of luxury goods,” said the report’s authors.
This transformation is particularly evident in the types of travel being booked, with emphasis on boutique properties, wellness retreats, and culturally immersive experiences. This trend is reflected in booking patterns, where exclusive small-group adventures and personalised itineraries are seeing unprecedented demand.
“Ultimate status has evolved beyond mere ownership of luxury goods,” the report states, noting that creating “unforgettable, identity-defining experiences” has become the new marker of affluence.
European coastal hotspots have become key testing grounds for this new approach. The study points to successful brand activations in high-traffic tourist destinations like Saint-Tropez and Mykonos, where luxury houses are launching seasonal pop-ups that blend retail with memorable experiences.
The study also indicates that travel and experience-focused luxury spending is growing at twice the rate of luxury goods purchases. This shift is particularly pronounced among younger wealthy consumers, who will soon represent 75% of the luxury market.
“Luxury is no longer defined solely by exclusivity,” notes the report, highlighting how cultural relevance and shared values are becoming crucial factors in luxury purchasing decisions.
