According to the BookMyShow-EY-Parthenon report Beyond Attention. Into Immersion, 78% of Indian consumers now prefer experiences over physical products, with 44% of spenders making unplanned experiential purchases. From impromptu scuba diving off Indonesian islands and flying to Abu Dhabi for rock concerts to pottery workshops, intimate courtyard music sessions and high-altitude treks, Gen Z is redefining discretionary spending with a novel category called 'fun funds'. The report notes that experience hubs range from live concerts and comedy tours to cultural gatherings such as Comic Con, Spoken Fest, or Van Gogh 360, a travelling digital art exhibition. Research cited in CBRE's Gen Z Checks In report shows that spending on experiences across Asia-Pacific has grown faster than spending on physical goods since the COVID-19 pandemic.
For 23-year-old Mumbai-based entrepreneur and musician Shanelle Ferreira, experiential spending spans everything from street food tasting in Hong Kong to Bachata classes, wine tastings, pottery workshops, kayaking, and treks. When her favourite rock band announced a show in Abu Dhabi, she and her partner skipped local Mumbai gigs to fly overseas for a bucket-list event. As reported by Mint, she stated that "What got my partner and I started on spending on experiences is the financial security of starting our career in music early." For 24-year-old entertainment manager Samhitha Kandadai, experiential spending centres around curated music and art evenings, aiming to attend live concerts almost every month alongside intimate studio gigs and indie art stalls. One of the most striking examples comes from 21-year-old Swaroopa R from Tamil Nadu, who spent approximately ₹1 lakh annually on activities such as horse riding, running, trekking, and adventure sports, funding a seven-day trip to Meghalaya using freelance savings after recovering from a knee surgery that left her in rehabilitation for five months.
While the appetite for experiences is universal, execution strategies vary significantly. According to Mint reports, individuals like Samhitha spend between ₹500 and ₹1,000 per event, attending activities once or twice a month. She makes sure registration fees don't cross limits and cuts down on eating out or shopping to make up for experience costs. For entrepreneurs like Shanelle, whose income fluctuates by project, the dynamic is different - they ensure funds after investments are complete before spending on experiences. Swaroopa emphasizes her biggest rule: "I don't spend money I don't have." The spending philosophy is fundamentally different from traditional budgeting, with the question now being "What can I experience?" rather than "What can I buy?"
Recent Bank of America research reveals concerning savings patterns among Gen Z consumers. The bank calls this the "little treat economy," with 92% of Gen Z respondents saying they treat themselves regularly, unchanged from last year. According to Bank of America, Gen Z has the lowest savings-to-spending ratio of any generation - sitting just below 0.5%. This metric measures median account balance divided by median monthly spending, meaning money would run out in under two weeks if all spending stopped today. Discretionary spending has climbed steadily since March 2025, with the gap between high- and low-income Gen Z spending growth being the smallest of any generation, indicating widespread spending behavior across all income levels. However, Bank of America's 2025 Better Money Habits study found that 59% of Gen Z consumers said little treats lead them to overspend, highlighting the risk of frequent small purchases snowballing into larger monthly expenses.
