Table of Contents
Executive Summary
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- Overview
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- Figure 1: Attitudes toward travel experiences, February 2018
- The issues
- The dichotomy of the experiential traveler
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- Figure 2: Travel experiences, February 2018
- Business travel accounts for 20% of domestic trips
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- Figure 3: Total domestic person-trips*, 2018
- The opportunities
- Need for expert curation in experiential travel
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- Figure 4: Destination inspiration, February 2018
- Innovative concepts and branding in accommodations
- Business travel – Wellness counts
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- Figure 5: Travel experiences have done or plan to do, February 2018
- What it means
The Market – What You Need to Know
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- Experiential travel contributing to overall growth in vacation and tourism
- Business trips can embrace experiential travel too
- Experiential travel appeals across traveler segmentation groups
- Budget, luxury, and everything in between
- Positive economic conditions cultivate growth in travel market
- Population growth and generation influence travel
Market Trends
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- State of the travel industry
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- Figure 6: Best- and worst-case forecast value sales of vacations and tourism, at current prices, 2012-22
- Consumers have high engagement when it comes to vacation planning
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- Figure 7: Category engagement – Vacations and tourism, February 2018
- Consumers want each vacation experiences to be unique
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- Figure 8: Attitudes toward travel experiences, Summer 2017
- Leisure domestic trips outnumber those for business
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- Figure 9: Total domestic person-trips*, 2015-20
- Traveler segmentation: Explorers, Adventurers, and Relaxers
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- Figure 10: Travel experiences, by consumer segmentation, February 2018
Market Perspective
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- The role of experience across the travel spectrum
- Budget travel
- Luxury travel
- Package travel
- Business travel and “bleisure”
Market Factors
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- Positive DPI supports consumers’ ability to fund travel experiences
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- Figure 11: Disposable personal income change from previous period, January 2007-December 2017
- High consumer confidence bodes well for discretionary travel market
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- Figure 12: Consumer Sentiment Index, January 2007-January 2018
- Population growth is favorable for market
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- Figure 13: Population aged 18 or older, by age, 2013-23
- Shifts in travel by generation
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- Figure 14: Population aged 18 or older, by generation, 2018
- Asian population important for travel marketers
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- Figure 15: Total population by race and Hispanic origin, 2013-23
- Figure 16: Median household income by race and Hispanic origin of householder, 2016
Key Players – What You Need to Know
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- Upscale authentic experiences appeal to budget and luxury travelers
- Hotels focus on upscale experiences in niche markets
- Mass tourism provides platform for the experiential traveler
- Expect more offerings targeting the experiential traveler
What’s Working?
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- Upscaling experiences
- Airbnb growing its collection of Experiences
- Pure Adventures offer authentic “Trail to Table” tours
- Excellence Resorts continue on a path to more luxury
- EVEN Hotels incorporates wellness travel for business travelers
What’s Struggling?
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- The ideal of experiential travel vs. the dangers of overtourism
What’s Next?
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- Expanding the breadth and depth of experiential travel opportunities
- Spotlight: Cruising hits all the right marks
The Consumer – What You Need to Know
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- Preference for new, unique experiences is a common pursuit in travel
- Travel experiences shape identity
- Accommodations are important to overall vacation experience
- Accommodations for future travel in question
- Personal recommendations provide destination inspiration
- Local recommendations have more influence for activities
Interest in Travel Experiences
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- Explore new places and time with family/friends are top travel interests
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- Figure 17: Travel experiences, February 2018
- Young travelers most likely to leave their comfort zone
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- Figure 18: Interest in leaving comfort zone and being off the grid, by age, February 2018
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- Figure 19: Interest in visiting famous places and learning about new cultures, by age, February 2018
- Asians skew toward experiential travel
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- Figure 20: Interest in trying new things, exploring new places, and learning about different cultures, by race and Hispanic origin, February 2018
- The Explorer represents the heart of the experiential traveler
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- Figure 21: Travel experiences, by consumer segmentation, February 2018
Travel Experiences Shape Identity
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- Figure 22: Travel experiences as part of identity, February 2018
- 25-44s are most likely to say travel experiences shape their identity
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- Figure 23: Travel experiences as part of identity (net agree), by age, February 2018
- Explorers say their travel experiences shape who they are
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- Figure 24: Travel experiences as part of identity (net agree), by consumer segmentation, February 2018
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Travelers Prefer New Destinations and Local Experiences
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- Figure 25: Travel preferences, February 2018
- Younger age groups prefer home shares
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- Figure 26: Travel preferences (net agree), by age, February 2018
- Explorers prefer the immersive travel experience
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- Figure 27: Travel preferences (net agree), by consumer segmentation, February 2018
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Valuing Experiences over Things
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- Figure 28: Attitudes toward travel, February 2018
- Younger age groups are most likely to travel to keep up with peers
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- Figure 29: Attitudes toward travel (net agree), by age, February 2018
- Adventurers want to experience new things – just not alone
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- Figure 30: Attitudes toward travel (net agree), by consumer segmentation, February 2018
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Most Important to Vacation Experiences
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- Accommodations are most important to vacation experience
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- Figure 31: Important factors in vacation experiences, February 2018
- Older travelers more likely to place importance on accommodations
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- Figure 32: Importance of accommodations in vacation experiences, by age, February 2018
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- Figure 33: Importance of entertainment, outdoor and tourist activities in vacation experiences, by age February 2018
Travel Experiences – Have Done or Plan to Do
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- Lodging plans are up in the air
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- Figure 34: Lead time for booking hotel/accommodations, April 2018
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- Figure 35: Travel experiences have done or plan to do, February 2018
- Under-35s are looking for something different in future travel plans
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- Figure 36: Travel experiences plan to do – Active and different, by age, February 2018
- Asians focus on activities for future travel plans
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- Figure 37: Travel experiences plan to do – Urban and active, by race and Hispanic origin, February 2018
- Explorers plan to get the local experience when they travel
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- Figure 38: Travel experiences plan to do, by consumer segmentation, February 2018
Destination Inspiration
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- Personal recommendations drive destination choice
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- Figure 39: Destination inspiration, February 2018
- Destination inspiration sources by age predictable
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- Figure 40: Destination inspiration – Social, by age, February 2018
- Travel websites influences higher earners
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- Figure 41: Destination inspiration – Travel review sites and social media, by household income, February 2018
- Adventurers rely on personal recommendations for destination planning
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- Figure 42: Destination inspiration, by consumer segmentation, February 2018
Activity Inspiration
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- Local recommendations have more influence in activities
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- Figure 43: Activity inspiration, February 2018
- Social media influences activity inspiration among young travelers
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- Figure 44: Activity inspiration, by age, February 2018
- Explorers leverage social media for activity inspiration
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- Figure 45: Activity inspiration, by consumer segmentation, February 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Consumer
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- Vacation activities of interest
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- Figure 46: Select vacation activities like to do, by gender, summer 2017
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- Figure 47: Select vacation activities like to do, by age, Summer 2017
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- Figure 48: Select vacation activities like to do, by household income, Summer 2017
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