Young people are rewriting the rules of luxury. For hospitality brands, this creates huge opportunities, and understanding the shift is essential.
Millennials are the first generation in 136 years to be worse off than their parents, and for Gen Z, the economic outlook is even less rosy. A combination of university debt, soaring house prices, and an uncertain job market fuelled by relentless AI acceleration has left young people financially squeezed.
So what happens when an entire generation is blocked from achieving social mobility?
They spend on luxury, of course.
But not in the way you might expect.
Despite drinking less, going out less, and earning less than previous generations, Gen Z’s luxury spending is growing three times faster than those before them. They’re not splashing the cash on traditional luxury goods. Instead, this generation (which remains intensely aspirational) indulges in excessive yet controlled purchases like a $21 smoothie from Erewhon as they attempt to regain a sense of control in tough economic times.
The three cultural shifts driving this trend are:
Exclusivity to Accessibility – Luxury once belonged to a select group of the most wealthy in society, but today’s accessible luxury has a far more attainable entry point.
Milestones to Micro Moments – Traditional milestones like buying a house have become out of reach for many, so people romanticise the everyday through curated rituals that enhance their lives in the present.
Financial Capital to Cultural Capital – When you can’t accumulate wealth, you can accumulate discernment. Being in the know, having insider information, and curating brands around you to share with your community is the ultimate signal of taste.
At the heart of these is a fundamental pivot from ownership to access. Identity is no longer exclusively inherited or bought through possessions; it’s built through intentional choices, lived experiences, and shared values. Tapping into all of this essentially creates the cheat code for status.
Welcome to the era of cash-strapped luxury, where a £6 matcha latte becomes part of an identity that holds more cultural currency than a designer handbag at a fraction of the cost, and taste becomes a status symbol.
For hospitality brands, this represents a significant opportunity. The growth of luxury hospitality is outpacing luxury personal goods, with food emerging as the most powerful form of cultural currency. This shift from ownership to access is particularly powerful in hospitality. Guests don’t need to own the experience to benefit from it. Dining experiences achieve what traditional high-end products can’t: they bring people together through recurring rituals that tap into Little Treat Culture.
Our Strategy Director, Oliver Cousins, recently presented this research in his talk ‘Cash-Strapped Luxury’ at the 2026 Restaurant Marketer & Innovator (RMI) European Summit, where hospitality leaders gathered to explore the future of the industry and to share valuable insights.
Our comprehensive culture report explores this phenomenon in more detail and presents five actionable frameworks demonstrated through 20+ brand case studies you can apply immediately to unlock the next luxury moment for your business.
