As the workforce continues to evolve, so do employee expectations—and increasingly, those expectations are centered on experiences. Today’s employees, especially Millennials and Gen Z, are placing more value on travel, events, and lifestyle enrichment than on traditional perks or material rewards. This shift is part of a broader cultural trend known as the “experience economy”—and it presents a compelling opportunity for employers. With the right strategy, companies can meet this demand without overextending their budgets. One of the most practical, scalable ways to do it? Leveraging an employee discount program to provide access to experiential perks that support well-being, engagement, and retention.
Let’s dive in.
Understanding the Experience Economy
The experience economy marks a major shift in how people spend, driven by a growing preference for doing over owning. Coined in a 1998 Harvard Business Review article by B. Joseph Pine II and James H. Gilmore, the term describes how consumers now seek out memorable, immersive experiences—like travel, concerts, wellness retreats, and cultural events—rather than traditional goods. Academic research backs this up: psychologist Dr. Thomas Gilovich of Cornell found that people derive more lasting happiness from experiences than from material purchases.
But it’s not just about joy—it’s also about identity. For younger generations, especially, experiences serve as a form of self-expression and social currency, often shared online to reinforce connection and status. For employers, this trend has real implications. As the lines between life and work blur, and as employees seek meaning, community, and enrichment, offering experiential benefits becomes more than a perk—it becomes a way to stay relevant in a changing economy.
Overextending on Experiences?
Since the concept of the experience economy was first introduced in 1998, experience-related spending has surged—but the pace has accelerated dramatically in recent years. According to research from Mastercard, U.S. spending on experiences grew 65% between 2019 and 2023, far outpacing the 12% growth in spending on physical goods. This appetite shows no sign of slowing, with the global experience economy projected to hit $12 trillion by 2028. But this rapid growth has come at a cost—particularly for Millennials and Gen Z.
A growing number are taking on debt to fund travel, dining, and live events, with 30–35% saying they’re willing to go into debt for travel alone. Nearly half of Gen Z and Millennials have already done so, and 23% of Millennials still haven’t paid off last summer’s vacation, according to a report from Credit Karma.
While it may be easy to dismiss this as financial irresponsibility, many young adults are responding to deeper systemic pressures. Rising housing costs, job insecurity, and diminished faith in retirement have fostered a kind of economic fatalism, fueling a “live now” mindset. In fact, 44% of Gen Zers and 43% of Millennials say they’d rather spend on experiences now than save for a retirement they believe may never come.
With easy access to credit and Buy Now, Pay Later apps, it’s never been easier to fund these experiences on borrowed money. And for many, the pursuit of meaning, self-expression, and mental wellness feels more urgent than long-term wealth building. The result? A generation that craves memorable experiences—but is increasingly overextending financially to access them.
The Opportunity for Employers
As younger generations increasingly prioritize experiences over possessions, employers have a unique opportunity to support what today’s workforce truly values—without stretching their budget. By leveraging an employee discount program to provide access to travel, events, wellness activities, and local attractions, companies can offer meaningful perks in a cost-effective, low-lift way. These experiential benefits do more than boost morale—they’re proven drivers of engagement and retention. When employees feel connected, appreciated, and fulfilled outside of work, engagement rises—leading to 21% higher profitability, 17% greater productivity, and 24% lower turnover.
The best part? Many of these high-impact experiences can be delivered simply by curating what’s already available through your employee discount platform—no new budget, just smart execution. Let’s take a look at a few examples.
- Travel Experiences. Travel remains one of the most sought-after experiences among younger employees, yet it’s often one of the most expensive. A well-rounded employee discount program can unlock savings on flights, hotels, car rentals, and vacation packages—making spontaneous weekend trips or long-planned getaways far more attainable. Companies don’t need to fund travel stipends to deliver real value; simply giving employees access to exclusive travel deals can feel like a high-end perk.
- Live Event Access. From concerts and comedy shows to sports games and theater performances, live events provide peak moments that employees remember. These experiences often carry steep price tags, but some employee discount programs include ticketing partnerships that reduce the cost of attendance. Employers can position these discounts as lifestyle perks without incurring any costs themselves—just by making them easily available.
- Amusement Parks & Family-Friendly Attractions. For working parents, a discounted trip to an amusement park or zoo can turn into a cherished memory with their kids. Employee discount platforms frequently offer deals on admission to major parks, aquariums, museums, and more. Offering these kinds of benefits helps employers support their employees’ family lives in a tangible, appreciated way—again, without having to subsidize anything directly.
- Local Experiences & Activities. Experiences don’t have to be extravagant to be meaningful. A cooking class, wine tasting, escape room, or art exhibit can provide employees with easy, accessible fun right in their own city. Many discount programs tap into these types of offers through local vendors, making it simple for companies to support engagement and work-life balance without adding administrative complexity or cost.
- Wellness & Outdoor Recreation. Discounted access to spas, wellness retreats, fitness classes, or even national park passes can help employees recharge and prioritize their mental and physical well-being. These experiences also align well with holistic wellness initiatives. Through an employee discount program, companies can offer a variety of wellness-related experiences, reinforcing their commitment to employee health in a budget-conscious way.
- Curated Experience Campaigns. Rather than offering one-off deals, employers can create ongoing engagement by packaging themed perks—like “Summer Travel Picks” or “Explore Your City” campaigns. Most discount platforms already have the offers in place; it’s just a matter of surfacing them in a way that feels timely and relevant. These campaigns require no new budget, just a bit of internal coordination and creativity to drive adoption.
Experiential benefits are more than just a trendy perk—they’re a powerful tool for boosting employee engagement, satisfaction, and loyalty in today’s experience-driven economy. By using an employee discount program to offer access to meaningful, memory-making opportunities, employers can deliver high-value benefits without adding financial strain to their organizations.
But while these perks help meet employees where they are, it’s important not to lose sight of the basics. Supporting long-term financial wellness through education, coaching, and resources remains essential—especially as many employees continue to overextend themselves to fund the very experiences they crave. A balanced approach that pairs experiential benefits with core financial wellness support can help employees feel both fulfilled in the moment and secure in the future.