News & Insights
The Experience Economy Is Not Slowing Down
Consumer spending patterns continue to evolve in 2026, but one trend has remained noticeably resilient: the demand for experiences.
As more of everyday life becomes digital and automated, experiences that offer human connection, participation and authenticity are becoming increasingly valuable to consumers. Even as consumers become more selective with discretionary purchases, spending continues to hold up across live entertainment, premium travel and hospitality.
This points to a broader shift in how consumers define value and where businesses are finding opportunities for growth. As McKinsey notes in its State of the Consumer 2026 report, the experience economy has become one of the structural forces reshaping global consumer markets. Rather than viewing experiences as discretionary indulgences, consumers are increasingly treating them as an important part of how they choose to spend both their time and money.
[Source: McKinsey]
Consumers are spending differently
Economic uncertainty has not eliminated discretionary spending, it has changed how consumers evaluate it. McKinsey's research suggests consumers are becoming more deliberate in how they allocate spending, with value influencing purchasing decisions across income groups. Between 2023 and 2025, the global experiences market grew by 2.6%, broadly in line with its pre-pandemic trajectory, while non-essential goods grew by just 0.8%.
[Source: McKinsey]
Mastercard's Experience Economy Report 2026 reaches a similar conclusion from a different perspective. Across Europe, 59% of consumers say they value experiences more than ever, while almost half would rather reduce spending on technology or streaming services to make room for leisure activities and live experiences.
[Source: Mastercard]
Together, these findings suggest consumers aren't abandoning discretionary spending. They're becoming more intentional about where it goes. For operators, that shifts the challenge from generating demand, to creating experiences consumers continue to choose despite greater spending discipline.
Why premium experiences continue to perform
McKinsey found that luxury travel continued to outpace the broader travel market between 2023 and 2025, suggesting consumers remain willing to spend more when they perceive greater quality, exclusivity or emotional value.
Mastercard's research adds another dimension. As digital interactions become a larger part of everyday life, consumers increasingly value experiences that feel personal, social and grounded in real-world connection. Experiences are valued not only for what they offer, but for the memories they create and the people they bring together. In that context, premium experiences compete on quality, exclusivity and emotional value rather than price alone.
This trend is also visible across major sporting events. The FIFA World Cup 2026™ is being positioned around the full hospitality journey rather than the match alone, combining premium seating with curated travel, dining and exclusive access. The experience now extends well beyond the game on the pitch.
[Source: Fifa]
Across sectors, the focus is shifting from attendance to participation. Experiences are now becoming the reason people travel rather than an activity added after the destination has been chosen. Concerts, festivals and major sporting events continuously shape travel decisions, with accommodation, dining and local experiences built around them.
For operators, that changes where value is created. The experience is no longer limited to the event itself, but includes the entire journey before, during and after. That creates opportunities across hospitality, travel, premium services and partnerships, rather than within the event alone.
Where is the experience economy heading?
None of this suggests consumers have become less price conscious. If anything, the opposite is true, as spending decisions become more selective. The experience economy is increasingly driven by experiences that offer something difficult to replicate - genuine connection, memorable moments and a sense of participation.
This raises a question for businesses: as products become easier to compare and digital interactions become increasingly automated, what creates lasting differentiation? For investors, the opportunity lies in identifying the businesses that consistently create reasons for consumers to participate, return and spend again.
La Royale Group Perspective
The experience economy continues to demonstrate resilience, but resilience alone is not what creates an attractive investment opportunity. The more important question is which businesses are best positioned to benefit as consumer expectations continue to rise.
From our perspective, the most attractive opportunities are likely to come from businesses that can maintain their competitive position as the market evolves. Strong demand may attract new entrants, but sustained success depends on whether businesses can continue delivering experiences people choose to spend on.
For investors, this shifts the focus beyond short-term growth alone. Repeat demand, pricing power and the ability to remain differentiated over time may prove more meaningful indicators of long-term performance than attendance figures in isolation.
"Strong demand alone is not enough. As competition increases, the businesses that continue to stand out will be those that deliver experiences people genuinely value. From an investment perspective, that ability is what continues to differentiate strong businesses, regardless of industry.
A brand may create the expectation, but the experience itself has to earn loyalty."
Madelynn Loo
CEO, La Royale Group