Decline in Tourist Spending Signals Return to Experiential Retail

The post-pandemic honeymoon of luxury tourism seems to be fading.

New data from CNA Luxury shows a decline in luxury spending among American and Chinese travelers across Europe and Japan, two regions historically dependent on international tourism for up to 40% of their high-end sales.

Yet, contrary to expectations, the overall market remains stable — supported by domestic shoppers and the revival of in-store experiences.

A global survey conducted by Customer Experience Dive reveals that 53% of luxury consumers still prefer physical boutiques, while only 12% shop exclusively online.

The finding highlights a decisive trend: while digital channels are growing, the essence of luxury remains profoundly human and tactile.

Retail design is evolving accordingly. Brands are now merging sensory experiences with technology: private salons equipped with AI styling tools, immersive VR storytelling, and predictive CRM systems that anticipate client needs.

However, a recent Fashion Network study notes that luxury companies still invest only 3.1% of their annual revenue in technology, underscoring how digital transformation remains underrepresented at the executive level.

The conclusion is clear: luxury’s future lies in hybrid human-tech experiences — where craftsmanship, service, and data intelligence coexist to redefine exclusivity.