Gen Z, millennials ditch luxury shopping for travel experiences in 2026: 88% plan to maintain or increase budgets

Young travellers are swapping luxury shopping for immersive travel experiences in 2026, with 88% planning to maintain or increase their travel budgets, according to Klook’s Travel Pulse 2026 report.

• Young travelers in 2026 value experiences over luxury shopping
• 88 percent plan to maintain or increase travel budgets this year
• Social media inspires trips, AI tools help plan and manage travel

Did our AI summary help?

In 2026, young travellers are dramatically reshaping what it means to spend well. Instead of measuring indulgence through luxury labels or overflowing shopping bags, they are investing in airline tickets, cultural workshops, food trails, and offbeat neighbourhood stays. For a generation that grew up online, value is no longer attached to what can be owned, but to what can be experienced and remembered.

Swapping couture for cooking classes and mall visits for multi-city itineraries, Gen Z and millennials are prioritising depth over display. Luxury splurges are giving way to immersive, locally rooted experiences — from learning traditional crafts to exploring lesser-known towns — signalling a broader shift in how travel fits into their lifestyle and financial priorities.

A new global study, Travel Pulse 2026, by travel experiences platform Klook, reveals that despite economic uncertainty, travel budgets are not shrinking. Instead, they are being reallocated — away from material purchases and towards meaningful experiences.

88% of travellers to increase or maintain travel budgets

According to the February 2026 report, 88 per cent of global travellers plan to increase or maintain their travel budgets this year. Even more significantly, nine in ten travellers are planning an international trip in 2026.

Travel intent is also accelerating. Around 61 per cent expect to travel in the first half of the year, up from 50 per cent last year — signalling stronger early-year demand.

Asia Pacific (APAC) is emerging as the world’s travel growth engine. Travellers from the region show a 50 per cent higher intention to increase travel spending compared to those in Europe and the United States.

Cutting shopping, not experiences

The most striking shift is not in whether people are spending — but how.

When faced with rising costs, travellers are choosing to cut back on shopping and material purchases rather than on activities and experiences. This trend is particularly pronounced in APAC, where travellers are nearly twice as likely as their Western counterparts to boost spending on experiences.

For Gen Z, travel is increasingly viewed as an investment in identity and personal growth rather than a break from routine life. Luxury is no longer defined by global brands, but by access — to culture, authenticity, and lesser-known places.

Instead of luxury shopping districts, travellers are opting for:

• Multi-city rail passes.
• Boutique stays that offer cultural depth.
• Immersive workshops and locally led experiences.
• Faster-paced, multi-stop itineraries.

Beyond Tokyo and Kyoto: Japan’s secondary cities gain ground

While Japan remains one of the most considered destinations globally, travel demand is spreading beyond traditional hotspots.

Secondary cities such as Yokohama, Hiroshima, and Nagoya are gaining popularity among young travellers seeking cultural depth and breathing room beyond Tokyo and Kyoto.

The study notes that:

• 42 per cent of travellers cite authentic local experiences as their top reason for exploring lesser-known spots.
• 39 per cent are motivated by discovering hidden gems.
• 37 per cent prioritise affordability.

Discovery today is driven by values and access — not novelty alone.

The rise of the multi-destination trip

Single-city vacations are giving way to broader itineraries. Two-thirds of travellers now plan to visit multiple destinations in a single trip, turning major cities into anchors rather than endpoints.

The trend extends beyond Asia. In Australia, cities like Cairns and Hobart are drawing attention. In Europe, regions such as Baix Llobregat and Tromsø are gaining traction. In the Middle East, destinations including Sharjah and Hurghada are seeing increased interest.

Social media inspires, AI executes

Travel discovery in 2026 is being powered by a dual engine: social media inspiration and artificial intelligence execution.

The report finds that 80 per cent of global travellers say social media influences the destinations or experiences they book. Platforms now act as digital word-of-mouth engines, offering real-time validation and peer-driven recommendations.

Meanwhile, 91 per cent of travellers use AI tools for trip-related tasks. The most common uses include:

• Research and destination discovery.
• Translation assistance.
• Itinerary planning.
• Budget management.

For Gen Z in particular, AI is not replacing spontaneity but enabling it — helping optimise tight schedules, manage spending, and navigate language barriers with ease.

Travel as investment, not indulgence

The overarching message from Travel Pulse 2026 is clear: travellers are not pulling back — they are recalibrating.

Shopping bags may be lighter in 2026, but travel calendars are fuller. Experiences are increasingly viewed as long-term investments in identity, culture, and connection.

As global uncertainty lingers, travel’s resilience appears rooted in its perceived value. Discovery is no longer a bonus — it is redefining where, how, and why people explore the world.