Why Gen Z & Millennials Are Spending More on Experiences Than Things

Something fundamental has shifted in how young Indians spend their money. The generation that grew up watching their parents save for a house and a car is choosing to spend on plane tickets, concert wristbands, and 8-day loops with 12 strangers in Sri Lanka.

This isn't a hunch. The data is overwhelming — and it has profound implications for anyone building products, brands, or communities for young people in India.

The Numbers Don't Lie

According to Cleartrip's 2025 year-end report, Gen Z recorded a remarkable 650% growth in travel bookings, making them the single most influential travel segment of the year. Their behaviour was spontaneous, experience-led, and driven by destinations with strong cultural and social appeal.

Meanwhile, data from Niyo's annual travel report — based on over one million outbound Indian travellers — reveals that millennials and Gen Z accounted for 9 in 10 international trips from India in 2025. Two-thirds of these trips originated from Delhi, Bangalore, and Mumbai.

And they're not just travelling more — they're spending more. According to Collinson International's 2024 report, Indian millennials spend an average of $6,031 (roughly ₹5 lakh) on travel annually, making it their single largest discretionary expense at 34% of annual spending. Gen Z follows at $2,622 — already significant for a demographic that's still early in their earning years.

The Experience Economy Isn't Coming. It's Already Here.

The shift from "things" to "experiences" has been building for over a decade. Eventbrite's foundational research found that 78% of millennials would rather spend money on a memorable experience than a physical purchase. Since then, the trend has only accelerated — particularly in India.

The Simon-Kucher 2026 Travel Trends Study paints the picture clearly: nearly 60% of Gen Z and 57% of millennials took two or more holidays in 2025 — the highest of any generation. And nearly half of all respondents expect to spend even more on travel in 2026.

What's driving this? Several converging forces:

• Social media as travel fuel. Over 50% of younger travellers say social media directly influences their destination choices. In India specifically, that number hits 70%. Travel has become a form of identity expression — and experiences generate far more engaging content than possessions.
• Flexible work models. The rise of remote and hybrid work has untethered travel from the traditional two-week annual leave. Young Indians are blending work and travel, extending weekend trips into week-long experiences, and prioritizing flexibility when choosing employers.
• The happiness research. Studies from Georgetown University and others consistently show that experiential purchases provide a greater happiness advantage than material ones. Young people have internalized this — perhaps having watched previous generations accumulate things without corresponding happiness gains.
• FOMO as economic engine. When your entire feed is filled with friends at concerts in Goa, sunrise hikes in Meghalaya, and group trips in Vietnam — sitting at home becomes harder to justify. The experience economy feeds on its own visibility.

But There's a Catch: Booking Anxiety Is Real

The desire to travel is sky-high. The ability to actually pull the trigger? That's where it gets complicated.

According to Skyscanner's 2026 Gen Z Travel Trends research, 87% of Gen Z travellers in India find booking trips overwhelming — compared to just 52% globally. The reasons? Decision overload (too many options), price fluctuation anxiety, and difficulty getting time off work (67% of Indian Gen Z struggle with annual leave, versus 39% globally).

This creates a massive opportunity for platforms that reduce friction. When someone else handles the curation — the accommodation, the itinerary, the people — Gen Z doesn't have to choose between 47 Airbnbs in Bali. They just show up.

That's not laziness. It's efficiency. And it's one of the core reasons curated group experiences like WanderLOOPS are growing while traditional DIY travel planning causes more stress than excitement.

What Young Indians Actually Want

When you strip away the noise, the pattern is clear. Young Indian travellers in 2026 want:

• Experiences that create stories — not just photos. The restaurant with no menu. The 4am hike nobody planned. The inside joke that becomes the trip's defining memory.
• People who match their energy. The single biggest variable in any trip is who you're with. Curated groups eliminate the randomness that makes most group travel mediocre.
• Quality without the cognitive load. Boutique stays, local experiences, no tourist traps — but without having to spend 40 hours planning it. The value isn't just in the experience. It's in not having to build it from scratch.
• Community that outlasts the trip. The group chat. The reunions. The "next one?" messages. Travel is increasingly a gateway to lasting human connection — and platforms that facilitate that will win.

What This Means for the Future of Travel

The experience economy isn't a trend. It's a permanent rewiring of how an entire generation defines value, status, and identity. By 2030, Gen Z's global spending is projected to reach $12.6 trillion — and travel sits at the center of their discretionary priorities.

For India specifically, the implications are enormous. A country of 1.4 billion people, with the world's largest youth population, is producing travellers who are digital-first, experience-hungry, and willing to pay for curation over commodification.

The brands, communities, and platforms that understand this won't just survive the shift. They'll define the next decade of travel.

At WanderLOOPS, we've seen it firsthand. Every loop we host — every group of 12 reviewed strangers who become lifelong friends in 8 days — is a proof point that the experience economy isn't theoretical. It's personal. It's emotional. And it's the most valuable thing you can buy with money.

Because the best things in life aren't things at all.