Why High-Net-Worth Travelers Are Still Spending Big on Luxury Vacations in 2026 – Will Your Country Be Among the Top Destinations?

Published on December 8, 2025

Visa’s recent analysis of global spending trends indicates that 2026 will likely present challenges for most markets. However, affluent travelers, particularly high-net-worth (HNW) individuals, continue to prioritize luxury travel despite broader economic uncertainties. Simon Baptist, the Principal Economist for APAC at Visa, highlighted that geopolitical tensions, supply chain disruptions, and elevated interest rates are expected to influence the global travel landscape. Yet, the high-net-worth sector remains a key driver of growth in luxury tourism.

Economic and Geopolitical Factors Affecting Travel

Baptist shared that the outlook for the coming year reflects a slowdown due to several ongoing economic and geopolitical factors. Geopolitical instability, fluctuating supply chains, and high interest rates are all expected to impact global spending. This will likely result in a more cautious approach to travel for many consumers, especially in the broader market segments. Despite these challenges, luxury spending continues to be resilient, driven largely by wealthy individuals who have shown a preference for extravagant vacations.

The United States is expected to experience a slight acceleration in economic activity, following a sluggish first half of 2025. While markets had initially expressed concerns over the impact of the trade war under former President Trump’s policies, the situation appears to have stabilized, leading to a more favorable outlook for 2026.

The Impact of Artificial Intelligence on Global Spending

Visa’s report also emphasized the growing influence of artificial intelligence (AI) on the global economy. The rise of AI infrastructure, particularly since the launch of ChatGPT in 2022, has been a significant driving force behind the global economy. According to Baptist, the surge in AI hardware investments is contributing to economic growth in regions like Taiwan, Malaysia, and South Korea, as well as impacting global stock markets.

Baptist noted that the booming stock markets are benefiting the affluent, with Visa’s data showing substantial increases in spending among high-net-worth individuals. Over the past five years, transactions on mass market cards have remained flat, while spending on mass affluent cards has grown by 7%. In contrast, HNW cards have experienced an impressive 15% growth, demonstrating the increasing wealth and spending power of the affluent.

High-Net-Worth Spending Dominates Global Markets

Visa’s data reveals that the growth in consumer spending over the last five years has been driven predominantly by the high-net-worth and mass affluent sectors. While the mass market has struggled to maintain spending, the wealthy are continuing to invest in luxury goods and services. The rise in capital markets and the strong growth of stock investments are significant contributors to this trend.

Countries in the Asia-Pacific region, including India, the Philippines, and Indonesia, are expected to experience some of the fastest growth rates in the number of new affluent individuals. However, this growth is contingent upon political stability in these regions. Among key destinations for affluent travelers, Dubai, Paris, Singapore, and New York stand out as preferred locations.

The Role of Affluent Consumers in Luxury Markets

Baptist highlighted a fascinating generational shift in luxury spending patterns. While Baby Boomers remain the largest contributors to affluent spending—accounting for 40% of the total spend despite representing only 12% of affluent households—Generation Z has also emerged as a significant force in luxury markets. The relative spending power of Gen Z, despite their smaller numbers, is noteworthy. In contrast, Generation X and Millennials, while holding significant wealth, tend to spend less freely.

This trend is particularly evident in emerging markets where younger generations are increasingly prioritizing experiences over savings, possibly due to factors such as housing market challenges and uncertainties in the job market. As a result, affluent Gen Z consumers, though fewer in number, are outspending their peers in older generations.

Fast-Growing Markets and Shifting Travel Trends

The rapid increase in the number of millionaires in countries such as India, the Philippines, and Indonesia reflects broader shifts in the global economic landscape. These regions have seen a surge in affluence, with many individuals adopting a mindset focused on enjoying the present rather than saving for an uncertain future. According to Baptist, this shift in attitude could explain why younger affluent consumers are so inclined to spend on luxury travel and experiences.

Notably, inbound travel to destinations such as the Middle East and Japan has seen significant growth, with the value of the Japanese Yen making Japan an increasingly attractive destination for affluent travelers. Conversely, outbound travel from countries like Japan and China has been affected by a combination of price pressures and domestic tourism shifts. These changes are having a substantial impact on global travel patterns, as markets adjust to new dynamics.

Declining Outbound Travel from China

China’s role in the global travel industry has traditionally been a driving force behind growth, particularly in terms of outbound tourism. Visa’s data shows that in the decade leading up to 2019, China was a key source of new revenue for the global tourism sector. However, recent political shifts and the effects of the COVID-19 pandemic have altered this trend. With a growing emphasis on domestic travel within China, the number of Chinese outbound travelers has declined, significantly affecting markets that were once heavily reliant on Chinese tourism.

This shift is compounded by the Chinese government’s preference for keeping spending within the country, which has led to a reorientation of travel preferences. Despite this, some regions continue to attract affluent travelers, with destinations such as Lucerne, Hokkaido, Geneva, Kyoto, Mallorca, and Madrid remaining popular among wealthy individuals.

Key Travel Destinations for Affluent Cardholders

Among the destinations that remain popular with affluent cardholders are Lucerne, Hokkaido, Geneva, Kyoto, Mallorca, and Madrid. Furthermore, there has been a marked increase in travel to emerging markets such as Ho Chi Minh City, Mumbai, Manila, and Bogota. These destinations are becoming increasingly appealing as wealthy travelers seek new and unique experiences.

Visa’s report highlights the importance of understanding the shifting patterns in global travel, particularly in the context of a changing economic landscape. Despite challenges in certain regions, the continued growth in luxury travel spending, particularly among high-net-worth individuals, offers a promising outlook for the industry.