India’s experience economy is accelerating as consumers increasingly prioritise learning, wellness, and meaningful leisure, a shift reinforced by the Union Budget 2026–27’s focus on experience-led tourism.
India’s experience economy has entered a decisive new phase. What was once considered an occasional indulgence — tied to travel, celebrations, or special occasions — is increasingly becoming a regular category of discretionary spending. Consumers are now allocating time and money toward learning, wellness, and participatory leisure, rather than traditional consumption of goods or passive entertainment.
New data from the Alive Experience Economy Report 2025 points to a structural change in how Indians, particularly urban consumers, are choosing to spend. According to the report, spending on experiences grew 90 times in 2025 compared to 2024, indicating momentum that goes beyond post-pandemic novelty or short-term lifestyle trends.
Experiences replace conventional leisure
The shift is most visible in urban markets, where experiences are increasingly displacing conventional leisure options such as movie outings, cafés, pubs, and nightlife. Rather than passive consumption, consumers are opting for activities that involve participation, learning, or emotional engagement.
The report shows that 55% of users are spending on learning-led experiences, ranging from skill-based workshops and hands-on masterclasses to creative and personal development formats. This reflects a broader prioritisation of self-improvement and purposeful leisure, especially among working professionals and young couples.
Wellness and mental health–oriented experiences are also seeing rising interest, alongside formats that allow participants to build, create, or learn something tangible — signalling a move away from entertainment as escapism toward experiences as enrichment.
Willingness to pay rises with value
Notably, the experience economy is no longer defined by price sensitivity. Data from Alive indicates that users are increasingly willing to pay for quality, curation, and memorability, with some spending up to ₹40,000 on a single experience booking.
This suggests that experiences are emerging as a value-driven category rather than a luxury-defined one. Unlike traditional luxury goods, which often signal status, experience-led spending appears to be more neutral — judged by depth, personal relevance, and emotional payoff.
Premium pricing is being accepted when offerings deliver strong curation, personalisation, and a sense of exclusivity rooted in meaning rather than material display.
Budget 2026 aligns with consumer shift
The rise of experience-led spending coincides with broader macro and policy signals. In the Union Budget 2026–27, tourism was positioned as a priority growth lever, with a clear emphasis on experience-led tourism circuits, development of heritage and eco-tourism destinations, and skill creation across the tourism and hospitality value chain.
The government’s focus on regional connectivity and destination-led development reflects growing recognition that experiences can act as long-term employment and economic drivers, particularly in non-metro and emerging regions.
As tourism policy increasingly moves beyond infrastructure alone toward curated destinations and local engagement, private platforms and creators operating in the experience economy stand to benefit.
Behavioural change becomes visible
Alive’s behavioural data highlights how deeply the shift is embedding itself into everyday lifestyle choices:
- 80% of Bengaluru consumers are choosing calmer, more meaningful experiences over nightlife-centric entertainment
- More than 1,000 couples opted for private, experience-led dates such as horse riding instead of cafés or movies
- Learning, wellness, and couple-focused formats are recording the fastest booking growth
“These patterns point to a deeper cultural change in how Indians value time, money, and leisure,” said Vivek Kumar, CEO and founder of Alive. “Experiences are no longer occasional treats — they’re becoming part of how people define lifestyle, relationships, and personal growth.”
What comes next for 2026
Looking ahead, Alive expects the fastest growth to come from learning-focused, wellness-led, and couple-centric experiences, as consumers increasingly replace dinners, movies, or parties with more intentional formats for birthdays, anniversaries, and celebrations.
As the experience economy matures, platforms that enable discoverability, trust, and seamless booking are emerging as critical enablers. These platforms not only help consumers navigate a growing universe of offerings, but also allow creators to monetise skills and knowledge in a sustainable way.
The broader implication is that experiences are no longer peripheral to consumption. They are becoming a core way in which urban Indians express identity, invest in themselves, and engage with leisure — a trend that aligns closely with India’s evolving tourism and services-led growth story.
