What's the read on travel, leisure, and experiences spending?

Consumer spending on travel and experiences has solidified into a durable, high-priority category, a trend accelerated by the COVID-19 pandemic . Across multiple surveys and expert analyses, travel is consistently identified as the top discretionary spending category consumers are most excited about for 2026 and the **last discretionary expense** they are willing to cut from their budgets [8, 11]. This prioritization is evident in the robust demand for air travel, where consumers continue to absorb significant fare hikes, indicating a structural shift in spending habits [5, 6, 23]. The overall retail environment remains healthy, with record sales in 2025 and continued growth fueled by a strong labor market and consumer focus on experiences like dining and travel . This sustained demand underpins a base case forecast for **5% revenue growth** in the global travel industry for 2026 , with a high percentage of travelers in key markets like the U.S. (60%) and India (90%) expecting to spend more than in the previous year .

Despite this strong top-line demand, consumer behavior is becoming increasingly bifurcated due to underlying economic pressures. While the top 50% of U.S. consumers are in a strong financial position , overall household excess savings have turned negative [24, 27] and consumer sentiment remains low . This economic divergence is squeezing the mid-tier market and forcing trade-offs. Consumers are demonstrating a willingness to cut back on luxury accommodations before sacrificing spending on activities and experiences . This dynamic is also creating a bifurcation within the travel market itself, not between wealthy and non-wealthy consumers, but between **luxury and ultra-luxury** segments [18, 19]. The broader trend appears to be consumers taking fewer trips but spending more on each one, prioritizing the quality of the experience over the frequency of travel .

A significant new catalyst reshaping spending patterns is the rapid adoption of GLP-1 weight-loss drugs, which is causing a fundamental reallocation of consumer funds [2, 17]. Described as a "physiological disruption," this trend sees users decreasing their spending on food, beverages, and accessories [1, 17]. The freed-up capital is being redirected toward categories aligned with a new lifestyle, including gym memberships, athleisure, and, notably, travel and active vacations [1, 3, 10]. This creates a substantial new demand stream for the experience economy, presenting a major opportunity for businesses in the wellness and travel sectors to capture market share from this growing demographic .