Rise of Luxury Experiences: Why Travelers Are Choosing Memories Over Material Goods

Rise of Luxury Experiences: Why Travelers Are Choosing Memories Over Material Good

Performance of luxury experience companies versus the S&P Global Luxury Index highlighting the growth of experiential luxury.

Luxury spending has long been associated with the purchase of high-end products such as designer handbags, watches and jewellery. Yet consumer preferences are evolving. Increasingly, luxury is being defined not only by what people own, but by what they experience. Travel, wellness, personalised services and cultural enrichment have become powerful drivers of spending among affluent consumers.

Since the pandemic, this shift has accelerated. Travellers are placing greater value on meaningful experiences, personal well-being and memorable journeys. Luxury tourism revenues have already surpassed pre-pandemic levels, supported by strong demand for premium hotels, cruises and wellness retreats. Industry estimates suggest that the global luxury travel market reached approximately $1.6 trillion in 2025 and is expected to continue growing at high-single-digit rates for the foreseeable future.

Financial Markets Are Reflecting the Trend

The impact of this shift extends beyond consumer behaviour and is increasingly visible in financial markets. As illustrated in this month’s chart, companies exposed to luxury travel, hospitality and wellness experiences have significantly outperformed the broader luxury sector over the past two years, suggesting investors are recognising the strength and durability of this structural trend.

Viking Holdings: Travel as an Experience

One of the clearest beneficiaries of this trend is Viking Holdings. Unlike traditional cruise operators focused on mass-market entertainment, Viking has built its brand around destination-focused travel experiences designed for affluent travellers seeking enrichment and discovery.

The company reported revenue growth of nearly 22% in 2025, reaching $6.5 billion, while maintaining occupancy levels of around 95%. To address rising demand, Viking plans to add 27 new river ships by 2028 and 10 additional ocean ships by 2031. These investments reflect management’s confidence that demand for experiential and destination-oriented travel will remain strong.

Premium Hospitality Continues to Expand

The same trend can be observed across the luxury hotel industry.

Hilton now operates more than 500 luxury properties across brands including Waldorf Astoria, Conrad and NoMad, while continuing to expand its flagship destinations in key markets. Marriott, through brands such as Ritz-Carlton, St. Regis and JW Marriott, continues to benefit from strong global demand for premium accommodation and exclusive travel experiences. With nearly 1.8 million rooms worldwide and more than 600,000 rooms in its development pipeline, Marriott is investing heavily to capture future growth.

Both companies have highlighted a growing preference for personalised service, exclusive destinations and memorable experiences as travellers choose to spend more on unique journeys and premium hospitality.

Wellness Becomes a Core Luxury Category

Beyond transportation and accommodation, wellness has become one of the most important pillars of the luxury experience economy.

This creates a significant opportunity for OneSpaWorld, the leading provider of wellness services onboard cruise ships and at resort destinations. The company operates more than 200 wellness centres, serves over 28 million cruise guests annually and controls more than 90% of the outsourced maritime wellness market. In 2025, OneSpaWorld generated record revenue of approximately $961 million, supported by growing demand for fitness programmes, nutrition services, medi-spa treatments and broader wellness-focused experiences.

Perhaps most importantly, wellness is increasingly viewed as an integral component of luxury travel rather than an optional add-on. Consumers are seeking experiences that contribute not only to enjoyment, but also to personal well-being.

The Future of Luxury

Taken together, the success of Viking, Hilton, Marriott and OneSpaWorld highlights a profound shift in luxury consumption.

Luxury goods remain an important part of the market. However, some of the strongest growth is now coming from experiences that offer discovery, wellness and personal enrichment. Both high-net-worth individuals and younger affluent consumers are prioritising travel, cultural experiences and self-care over the acquisition of additional material possessions.

The implication is clear: the future of luxury may be defined less by what people own and more by where they go, what they experience and how those experiences enrich their lives.

Written by Maria Hernandez Sanchez

Download PDF version: Chart of the Month_September 2026

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The power of luxury: growth and resilience

Despite the current economic downturn, the luxury sector is resilient and continues to grow, while maintaining high margins.

In the current global landscape, luxury companies have established themselves as attractive and strategic investments. In the context of major challenges, the sector is emerging as a bastion of economic stability and a status symbol. Luxury giants such as Hermès and LVMH, iconic companies such as Prada and little gems such as Jungfraubahn are examples that not only embody luxury and exclusivity, but also offer solid financial opportunities.

Indeed, despite global economic fluctuations, the luxury sector has demonstrated a remarkable capacity for resilience and financial stability. Indeed, even in times of economic downturn, these companies often retain their value thanks to the loyalty of their wealthy customers. A case in point is Hermès, which has maintained steady growth over the years, even during recessions, thanks to the exclusivity of its products. In terms of performance, the company has even outperformed technology giants such as Meta and Alphabet, while exhibiting lower volatility.

A WELL-DIVERSIFIED SECTOR
Another great advantage that characterises most of the players in this industry is their diversified portfolio, which covers different brands and market segments, ranging from fashion and accessories to hotels and high-end drinks. LVMH is an excellent example of this diversification, with over 70 brands under its umbrella, including legendary names such as Louis Vuitton, Dior and Moët & Chandon. This strategy not only mitigates risk, but also facilitates geographic expansion by taking advantage of growth in emerging markets.

INNOVATING WHILE REMAINING TRUE TO THEIR HERITAGE
These companies also stand out for their ability to innovate while preserving their heritage and maintaining very high barriers to entry. Prada, for example, is renowned for its emphasis on innovation in design and materials, combining traditional Italian craftsmanship with modern technology. This fusion of innovation and tradition gives rise to unique products that appeal to demanding and loyal consumers, guaranteeing a steady stream of income and keeping the circle closed to just a few exclusive brands.

STRONG PRICING POWER
Finally, another attractive feature of luxury companies is their exceptional brand positioning, which enables them to set high prices, with margins far higher than those of their less exclusive competitors. This recognition is the result of decades of investment in quality, design and refined marketing strategies. Jungfraubahn, known for its exclusive destinations in the Swiss Alps, has established itself as an icon of luxury mountain tourism, attracting a global clientele in search of unique and unrivalled experiences.

Investing in luxury companies such as those mentioned above guarantees solid financial stability and effective diversification, thanks in part to their intangible value through prestige and exclusivity. Indeed, these companies not only market products, they also offer experiences and an ambitious lifestyle that continues to be sought after worldwide, particularly by the younger generation. For these reasons, acquiring luxury companies can be a strategic and profitable long-term decision.