For the past couple of years, the luxury sector has been bleeding sales as consumers traded down in an inflationary economic environment.

But over the past two quarters, green shoots are appearing in the luxury sector—largely driven by richer, older households.

The research from Bank of America—compiled using aggregated credit and debit card use—shows spending in the luxury sector has been in decline since Q3 2022.

The slowdown continued throughout 2023 and into 2024, but it was in the final quarters of last year when sales began to pick up once again.

While the sector is still in decline the pace is slowing, said economist Taylor Bowley, suggesting there is “some significant scope for a rebound in luxury spending going forward.”

The strength of that rebound is dependent on rich, older shoppers, the data also suggests.

In 2024, Gen X accounted for the largest portion of luxury spending: approximately a third of purchases.

This was followed by ‘older millennials’—people born between 1978 and 1988—who contributed a little under a third of purchases, and baby boomers, who made up around a quarter of the spending.

But across the generations, and particularly at the more mature end of the scale, shoppers aren’t spending on luxury items. Instead, they’re paying a premium for luxury experiences like high-end hotels.

The research seen by Fortune shows in 2024, boomers, for example, spent 2.5% more than a year prior on luxury hotels.

They also spent around 0.5% on premium goods compared to the previous year, but were the only cohort to do so.

Read more from Fortune

Gen X and older millennials are also enjoying splashing their cash on high-end hotels, similarly upping their spend on such services by approximately 1.5% compared to 2023.

And it seems those who have some extra money to spend are not only getting their luxury hotels abroad, but they’re going shopping, too.

It seems luxury shoppers are happy to go abroad if it means getting more bang for their buck, courtesy of exchange rates—with 13% of premium purchases made overseas.

And BofA’s data shows the top 5% of households in terms of income are driving this trend, spending 10% more overseas in 2024 than they did in 2023.

Indeed, even the middle and higher income quartiles are spending more abroad year-on-year than they are at home.

BofA data shows in higher income households, spending was up 2.5% overseas in 2024 compared to 2023, and was up approximately 1% in middle-income households.

What about the Great Wealth Transfer?

While it’s unlikely older generations will spend all of the cash expected to be passed on in the $90 trillion Great Wealth Transfer, it does seem like younger people won’t get all the funds they’re expecting.

Indeed, a study from investment advisors Charles Schwab released last month found millionaire boomers, in particular, are planning to spend their funds instead of passing it on.

Having spoken with 1,000 millionaires, researchers found on average, just 39% of wealthy Americans want to preserve their fortunes to pass on to others. 

While Gen X are the cohort most significantly trying to preserve cash to share with other people at 45%, 34% of boomers, by contrast, said they were making similar efforts.

As such, 45% of boomers—aged 60 to 78—said they were planning to spend their money for their own enjoyment, and didn’t want to be around to witness other people enjoying their hard earned funds.

When asked if they wanted recipients to enjoy their money while they were still alive, just 21% of boomers responded yes.