Indian households are projected to increase spending on experiences at a faster pace than on physical goods over the next five years, according to research by CBRE. Citing Oxford Economics data, the report estimates that expenditure on physical goods will grow at a compound annual growth rate (CAGR) of 9.1 per cent between 2025 and 2030, while spending on experiences is expected to expand at a higher CAGR of 10.3 per cent during the same period. Among experiential categories, spending on hotel accommodation is forecast to register the strongest growth, rising at a CAGR of 10.6 per cent through 2030. As per CBRE's report titled 'Gen Z Checks In: The Rise of the Lifestyle Hotel', this shift underpins a fundamental change in consumer preferences towards experience-led consumption.
Over the past few years, many Indians have started looking at money differently, according to reports from BankBazaar.com. Rising living costs, economic uncertainty, and changing priorities are encouraging people to focus less on spending more and more on spending wisely. The shift is not about cutting back. It is about making every financial decision count, moving from buying more to spending better. For years, higher income often led to higher spending with lifestyle upgrades, frequent purchases, and convenience-driven spending becoming common as incomes increased. Today, many households are asking a different question: Does every purchase truly add value? Whether it is choosing experiences over expensive possessions, delaying non-essential purchases, or comparing options more carefully, consumers are becoming more selective. The focus is gradually moving from buying more to spending better.
The trend is being driven largely by Gen Z, currently the largest demographic cohort in the Asia-Pacific region, born between 1997 and 2012. This demographic is entering the workforce and attaining financial independence, boosting spending that is projected to grow faster than that of any other living generation. According to the report, Gen Z travellers increasingly seek visually distinctive, curated spaces that serve as both immersive experiences and social media-friendly backdrops. They also value personalised service over standardised hospitality offerings and favour communal spaces that host experiential activities such as wine tastings, live acoustic performances and local cultural events. Wellness has become a core expectation, while seamless technology is now considered a baseline requirement. The pandemic significantly accelerated this shift towards experience-led spending, with pent-up demand and consumers' desire to make up for missed opportunities fuelling spending on travel, dining, entertainment and other experiences since 2022.
A new category of property — the lifestyle hotel — has emerged as the industry's answer to this generational demand. Unlike boutique hotels or global chains, these hotels occupy a middle ground, combining the design and local character of an independent property with the operational scale, distribution networks and loyalty programmes of an institutional brand. In India, the penetration of lifestyle hotels remains low compared with markets such as Singapore and Hong Kong. Between 2015 and 2025, overall hotel supply across the Asia-Pacific region expanded at a steady CAGR of 5 per cent, while lifestyle hotels recorded a much faster CAGR of 19 per cent during the same period. The momentum is expected to continue through 2030, with lifestyle hotel supply projected to grow 10 per cent annually, compared with the broader hotel market. Developers are increasingly turning to existing properties rather than building from scratch, given rising land costs and construction expenses. According to CBRE's Chairman & CEO Anshuman Magazine, the lifestyle hotel segment represents a compelling double-win for property owners and institutional investors, offering measurable RevPAR and ADR premiums over standardized assets and a capital-efficient conversion pathway.
Conscious spending often goes hand in hand with better financial planning, according to BankBazaar.com. Instead of spending first and saving later, many individuals are prioritising emergency funds, investments, retirement planning, and debt repayment. This approach helps ensure that spending decisions support larger financial objectives. A purchase is no longer viewed only by its immediate cost but also by its impact on future goals, creating a healthier relationship with money over time. The move from consumption to conscious spending is one of the most significant shifts in personal finance today, with more people realising that long-term financial security is shaped by thoughtful decisions and consistent habits, rather than by constant spending.
Conscious spending does not require major lifestyle sacrifices, according to BankBazaar.com. Often, it starts with simple habits such as budgeting regularly, comparing purchases, avoiding impulse spending, and focusing on needs before wants. These small steps can strengthen financial resilience while still leaving room for enjoyment and personal goals. The move from consumption to conscious spending is one of the most significant shifts in personal finance today, with more people realising that spending with intention can help create a stronger foundation for both present needs and future aspirations. Spending will always be a part of life, but spending with intention can help create a stronger foundation for both present needs and future aspirations.
