Why the Rich Are Spending Less on Luxury Goods and More on Experiences

James D. Roumeliotis

Luxury isn’t what it used to be. Not long ago, status was all about owning the car, the watch, the bag, the brand. But today, the most affluent consumers, the very ones who used to drive sales for high-end fashion and luxury goods, are spending differently. They’re shifting their money away from objects and toward experiences. So, why is this happening and what can entrepreneurs, especially those in lifestyle, hospitality, and premium services can learn from this transformation.

The End of “Status by Possession”

For decades, brands like Louis Vuitton, Chanel, and Rolex defined what it meant to “make it.”
But after the pandemic and the digital shift, priorities changed.

Affluent consumers began asking:

“Do I really need another handbag or do I want to see the Northern Lights before I turn 50?”

Ownership no longer equals prestige: experience does.

According to Bain & Company, spending on experiential luxury, such as travel, dining, and bespoke services, has now surpassed physical luxury goods.

Luxury is no longer about showing off wealth.
It’s about feeling alive.

The Experience Economy Takes Over

We’ve entered what economists call the Experience Economy.

Here’s what that means:
People, especially the wealthy, don’t just want products, they want stories, emotions, and transformation.

Think of Four Seasons and Aman Resorts. They’re not just hotels; they curate emotions.
A weekend there isn’t about checking into a suite: it’s about disconnecting from chaos and reconnecting with self.

Or look at Singita, a luxury safari brand in Africa.
Guests don’t come for just wildlife.
They come for conservation, sustainability, and impact — experiences that make them feel part of something meaningful.

The wealthy no longer collect things — they collect moments.

Examples of Luxury Experience Brands Winning

Let’s look at some examples of this trend in action:

1. Belmond Trains & Hotels – Their Venice Simplon-Orient-Express offers the romance of old-world travel: crystal glasses, tuxedoed waiters, and breathtaking routes. It’s nostalgia and escapism rolled into one.
   People pay thousands not for speed, but for sentiment.
2. Six Senses Resorts: They blend wellness, sustainability, and ultra-luxury. Guests participate in holistic programs — from sound healing to sleep optimization — because luxury now means well-being.
3. Airbnb Luxe & Private Retreats: High-end travelers are choosing private villas with curated experiences including personal chefs, local guides, and private yoga.
4. Private Culinary Experiences: Instead of fine dining at Michelin restaurants, some consumers now hire world-class chefs for private in-home dinners or yacht events.
   The exclusivity is in the access, not the address.

These examples show one thing: The new definition of luxury is personalization, privacy, and purpose.

The Psychology Behind the Shift

Why are affluent consumers making this change? It’s psychological and generational.

Millennials and Gen Z, who now make up a growing share of high-net-worth spenders, value meaning and memory over materialism.

They’re digital natives constantly surrounded by content.
So, showing luxury online isn’t as valuable as feeling it firsthand.

They also prioritize sustainability and social impact.
Owning yet another designer piece feels indulgent but experiencing a conservation safari in Botswana or supporting artisans in Italy feels purposeful.

And let’s not forget: after years of uncertainty, people crave connections with others, with nature, with themselves. Experiences offer that emotional payoff that products simply can’t.

How Entrepreneurs Can Leverage This Shift

If you’re an entrepreneur — this trend is full of opportunity.

Here’s how you can position your business to attract affluent clients looking for experience-based luxury.

1. Sell Emotion, Not Product
   Whether you run a spa, boutique hotel, or travel agency — market the feeling, not the thing.
   Don’t say “5-star villa.” Say “A place where mornings start with silence and the scent of olive trees.”
2. Personalize Everything
   Affluent consumers expect tailored experiences.
   From custom menus to itinerary design — personalization is no longer a perk, it’s the product.
3. Curate Partnerships
   Collaborate with local artisans, chefs, or wellness experts.
   Luxury clients love authenticity — real people and real stories.
4. Focus on Sustainability
   Responsible luxury is the new gold standard.
   Eco-conscious design, ethical sourcing, and carbon-neutral travel are not just buzzwords they’re expectations.

The Future of Luxury

Luxury brands are realizing that the future isn’t about bigger logos — it’s about deeper meaning.

That’s why LVMH and Kering have invested in hospitality and experiences — from Cheval Blanc hotels to wellness retreats and cultural ventures.

Because the next generation of affluent consumers isn’t saying,

“I want to own more.”
They’re saying,
“I want to feel more.”

In summary

So, as we move into this new era of experiential luxury, remember this: Status symbols fade. Memories don’t. If you’re building a brand, think beyond the sale — think about how your product or service makes people feel. That’s where true value lives.

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