Gen Z and Millennials Choose Experiences Over Things, Fueling Travel Demand

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Why Flying Through Trees Beats Buying a Handbag for Today’s Experience-First Generation

Knoxville, United States – September 9, 2025 / Navitat Knoxville /

Why Gen Z and Millennials Choose Experiences and Adventures Over Things

A Generational Shift in Spending

For Millennials and Gen Z, the “American Dream” of accumulation is giving way to something less tangible: meaningful experiences. According to Eventbrite, 78% of Millennials say they would rather spend money on an experience than on a physical purchase, and similarly high percentages are observed among Gen Z adults.

A 2023 Mastercard Economics Institute report further corroborates this trend, revealing that spending on experiences has outpaced spending on goods by approximately 65% since 2019, even amid inflation.

Economists agree that this shift benefits both individuals and communities. As one tourism analysis explains, when visitors spend within a local experience economy, the ripple effect amplifies, with each dollar cycling through local businesses: mom-and-pop stores, restaurants, lodging, and creating broader economic benefits

The Role of Social Media in the Experience Economy

Social media is an undeniable driver. A Harris Poll found that 65% of Millennials and Gen Z view experiences as more “shareable” and socially valuable than items. Instagram stories and TikTok videos showcasing ziplines, hikes, and night climbs are replacing traditional status symbols like cars or handbags.

For younger consumers, this means choosing adventures that not only feel good in the moment but can also be shared as digital stories, extending the joy and reinforcing identity within their networks.

Knoxville’s Economic Landscape: Experience Spending on the Rise

This national trend has direct implications for Knoxville. In 2022, tourism in Knox County generated $1.88 billion in direct visitor spending, according to the Tennessee Department of Tourist Development and Visit Knoxville. That level of activity supported 14,423 local jobs, underscoring the role of travel and experiences in sustaining the region’s economy

Local businesses are also part of this rising tide. Visit Knoxville notes that spending tied to travel supports a wide ecosystem, from restaurants and breweries to boutique shops and lodging providers. Visitors drawn by adventure activities like ziplining often extend their stay to enjoy Knoxville’s food, arts, and cultural scene, creating ripple effects across the local economy.

Navitat Knoxville: A Case Study in Experience-First Travel

At Navitat Knoxville, located in the heart of the city’s Urban Wilderness, bookings among college students, young professionals, and couples have climbed steadily over the past three years. These groups often cite the appeal of bonding with friends, tackling personal challenges, and “doing something different” as reasons for choosing the aerial park over more traditional leisure activities.

“Instead of another dinner or trip to the mall, our guests want to challenge themselves, laugh together, and walk away with a story,” said a Navitat Knoxville spokesperson. “For them, that memory is more valuable than anything they could have purchased.”

Customers Weigh In: Why They Choose Adventures

For recent UT graduate Sarah Mitchell, birthdays with friends look different than they did a decade ago. “We used to exchange gifts,” she explained. “Now we pool money for something like ziplining. A necklace might sit in a drawer, but flying through the trees is a memory we’ll talk about for years.”

Parents are seeing the same pattern. Knoxville father Brian Lawson shared: “We noticed our kids don’t need more stuff. They remember the experiences — camping, hiking, ziplining. That’s what bonds them to us and each other.”

Mental Health and Social Benefits

Psychologists also highlight how experiences may be offering more than fun. Research published in Frontiers in Psychology shows that experiential purchases strengthen social bonds and provide longer-lasting satisfaction than material goods, in part because they create shared memories and reduce stress (Frontiers in Psychology).

As Dr. Thomas Gilovich, professor of psychology at Cornell University and a leading researcher on this topic, has explained in interviews: “Our experiences are a bigger part of ourselves than our material goods. We are the sum total of our experiences.” His research demonstrates that adventures and shared activities can improve well-being and support mental health by fostering presence, engagement, and stronger social connection.

Knoxville Positioned for Growth

As the “experience economy” continues to expand, Knoxville’s blend of urban amenities and outdoor access positions it as a key destination. The city’s Urban Wilderness—encompassing more than 1,000 forested acres with trails, lakes, and adventure courses—gives attractions like Navitat a unique advantage.

With national tourism spending rebounding past pre-pandemic levels, local leaders say Knox County could see further gains as more young travelers prioritize experiential destinations. “Knoxville isn’t just keeping pace with the trend,” Dr. Carter noted. “It’s helping define it in the Southeast.”