Global Travelers Shift Focus to Nightlife and Experiences in This Year, A Hope to Boost Tourism Industry in 2025

Published on October 4, 2024

By: Tuhin Sarkar

The global travel industry is undergoing a significant shift as tourists increasingly prioritize experiences and nightlife over traditional retail shopping. In 2024, spending on experiences—such as entertainment, dining, and nightlife—reached 12% of total tourism sales, the highest level recorded in at least five years. This marks a key turning point in how travelers allocate their budgets while on vacation, reflecting evolving preferences and a renewed focus on creating memorable, immersive experiences.

According to data from SpendingPulse Destinations, tourism spending on experiences as a share of total sales has grown steadily over the past few years, driven in part by post-pandemic travel patterns and a surge in demand for activities that offer a deeper connection to the local culture and environment. In contrast, retail shopping, traditionally a major contributor to tourist spending, has recovered at a slower pace as consumers move away from material purchases and focus more on nightlife and leisure activities.

The Rise of Nightlife and Experiences in Global Tourism Spending

As of March 2024, 12% of total global tourism sales come from experiences, a figure that is higher than ever before. This shift reflects a broader trend within the travel industry, where travelers are seeking out unique, authentic experiences rather than merely spending money on goods or souvenirs. This focus on experiences has been observed across a variety of traveler demographics and is reshaping the way destinations and tourism providers cater to visitors.

Key markets such as Australia, Germany, the Chinese Mainland, Italy, the United States, and the United Kingdom have seen significant changes in tourist spending habits. For example, Australian tourists, who are known for their adventurous spirit, spend nearly one in every five dollars on nightlife and experiences, well above the global average. This statistic underscores Australia’s position as a leading market for experience-driven tourism.

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Travelers from the Chinese Mainland, traditionally known for their high spending on retail, have also begun to allocate a larger portion of their travel budgets to experiences. In just one year, the share of outbound tourism spending on experiences has increased from 7% to 10%, highlighting the growing appeal of immersive activities and local nightlife for Chinese tourists.

Factors Driving the Shift Toward Experience-Based Tourism

Several factors are contributing to the rise of experience-based tourism:

1. Post-Pandemic Travel Boom: After several years of travel restrictions and uncertainty, tourists are eager to make the most of their trips by investing in experiences that create lasting memories. The desire to break free from the confines of the pandemic has led to a surge in demand for activities that offer relaxation, entertainment, and cultural engagement.
2. Cultural Immersion and Authenticity: Today’s travelers are increasingly seeking opportunities to immerse themselves in local culture. Whether it’s through attending concerts, enjoying nightlife, or participating in cultural festivals, tourists are prioritizing activities that provide an authentic connection to their destination. This desire for authenticity is driving spending on experiences rather than retail goods, which are often seen as less impactful or meaningful.
3. Social Media and the ‘Experience Economy’: The rise of social media has played a pivotal role in promoting experiences over physical purchases. Travelers are keen to document and share their adventures, whether it’s through photos, videos, or stories, further fueling the desire for Instagrammable moments and unique experiences. This ‘experience economy’ is leading tourists to allocate more of their travel budgets toward activities that provide shareable content and memorable experiences.
4. Sustainability and Mindful Spending: Many tourists are becoming more mindful of the environmental and social impacts of their travel choices. As a result, they are moving away from consumerism and toward spending on sustainable experiences that support local communities. Eco-tours, wellness retreats, and local food experiences are just a few examples of how tourists are choosing to engage with their destinations in more meaningful and responsible ways.
5. Changing Preferences of Younger Generations: Millennials and Gen Z travelers, in particular, are driving this shift toward experience-based tourism. These generations tend to value experiences over material possessions, and they are more likely to spend their money on nightlife, adventure, and unique activities. This demographic shift is pushing the travel industry to adapt by offering more experience-centric packages and services. Hilton Hotels observe greater spending from business travel budgets

Global Trends in Experience-Based Tourism Spending

The trend toward increased spending on experiences is not limited to one region or demographic. In fact, it is being observed across several key tourism markets, each with its own unique characteristics and drivers of experience-based spending.

1. Australia: Australian tourists are leading the charge when it comes to spending on nightlife and experiences. Nearly 20% of Australian tourists’ travel budgets go toward experiences, reflecting the country’s cultural emphasis on adventure and outdoor activities. Popular experiences for Australian travelers include outdoor festivals, live music events, and immersive nature excursions.
2. Germany: German tourists are increasingly allocating more of their travel budgets to nightlife and dining experiences, especially in major European cities. Germany’s diverse cultural landscape offers tourists a wide range of experiences, from world-class opera and theater performances to vibrant nightlife scenes in cities like Berlin and Hamburg.
3. Chinese Mainland: Chinese tourists, once known for their high levels of retail spending, are now placing a greater emphasis on experiences. In 2024, the share of outbound tourism spending on experiences has grown to 10%, up from 7% just a year ago. This shift is being driven by younger Chinese travelers who prioritize experiences such as cultural tours, theme parks, and culinary adventures.
4. United States and United Kingdom: Tourists from the U.S. and the U.K. are also contributing to the rise of experience-based tourism. While these travelers still spend a significant portion of their budgets on retail, the share spent on experiences has steadily increased. U.S. tourists, in particular, are drawn to nightlife and entertainment options, while U.K. travelers often seek cultural and historical experiences during their trips.
5. Italy: Italy remains one of the top destinations for experience-driven tourism, with tourists flocking to the country for its rich cultural heritage, world-renowned cuisine, and vibrant nightlife. Italian cities such as Rome, Florence, and Venice offer a wealth of experiences that cater to a wide range of traveler interests, from art and history to food and wine.

The Future of Experience-Based Tourism

As travelers continue to prioritize experiences, the tourism industry is adapting to meet this demand. Destinations around the world are investing in their nightlife, entertainment, and cultural offerings to attract tourists who are eager to immerse themselves in local experiences. The rise of experience-based tourism presents new opportunities for tourism providers to create unique, memorable experiences that cater to the evolving preferences of today’s travelers.

In the coming years, the focus on experiences is likely to grow even stronger, as more travelers opt for activities that provide personal enrichment, cultural engagement, and sustainable tourism practices. Whether it’s through attending a local festival, exploring a hidden natural gem, or enjoying a city’s vibrant nightlife, tourists are shaping the future of travel by prioritizing experiences over material goods.