Experiential Traveler: Incl Impact of COVID-19 - US - May 2020

OVERVIEW
What you need to know
Key issues covered in this Report
EXECUTIVE SUMMARY
Market overview 
Top takeaways 
Impact of COVID-19 on experiential travel
Figure 1: Short, medium and longer term impact of COVID-19 on experiential travel, June 2020
How travelers view experiences
Half of travelers are “experiential,” but a divide exists
Figure 2: Experiential traveler segments, February 2020
Getaways are for getting away
Figure 3: Travel goals, February 2020
What travelers want from experiential travel
Room for travel experiences across categories
Figure 4: Most desired experiences, February 2020
Exclusivity can yield new revenue streams
Figure 5: Desired upgrades, February 2020
A personal interest in being personally interesting
Figure 6: Attitudes toward sharing experiences, February 2020
What’s next
THE IMPACT OF COVID-19 ON EXPERIENTIAL TRAVEL
Figure 7: Short, medium and longer term impact of COVID-19 on experiential travel, June 2020
Opportunities and threats
Short-term threats
Short-term opportunities
Figure 8: Aer Lingus customer email, April 2020
Figure 9: Visit Colorado “Waiting to CO!” campaign, May 2020
Figure 10: Visit Faroe Islands Instagram post, April 15, 2020
Medium-term threats
Medium-term opportunities
Long-term threats
Long-term opportunities
How the crisis will affect key consumer segments in travel 
Impact of COVID-19 on travel behaviors
Figure 11: Concern about changing travel plans, April 16 – June 4, 2020
Figure 12: Change in spending priorities, April 16 – June 4, 2020
How a COVID-19 recession will reshape travel experiences
How 2020 will compare to 2009 for travel spending
Figure 13: Consumer spending on air transport, monthly, 2006-10
Figure 14: Consumer spending on hotels and motels, monthly, 2006-10
Americans will put family first
Figure 15: Most-anticipated post-quarantine activities, June 2020
Financial optimism is timidly increasing, but recession creates uncertainty
Figure 16: Financial situation self-assessment, May 2020
Figure 17: Prediction of own personal finances, May 2020
COVID-19: US context
THE MARKET – WHAT YOU NEED TO KNOW
Travel experiences face a tough road in the face of pandemic
Who are experiential travelers?
Engaging marketing can make travel experiences as important as the destination
The economy is bad, and relief is a long time coming
TARGET MARKET: EXPERIENTIAL TRAVELERS
Factors
Figure 18: Experiential Traveler segments, February 2020
Experiential Traveler segments
Eager Experiencers – 23%
Figure 19: Eager Experiencer segment demographics, February 2020
Local Lookers – 30%
Figure 20: Local Looker segment demographics, February 2020
Regardless Rovers – 21%
Figure 21: Regardless Rover segment demographics, February 2020
Twilight Tourists – 25%
Figure 22: Twilight Tourist segment demographics, February 2020
Figure 23: Segment attitudes toward experiential travel, February 2020
MARKET PERSPECTIVE
Activities carry less weight than the destination
Figure 24: Importance of activities, by age group, February 2020
Tours are the go-to experience
Figure 25: Types of tours taken, February 2020
The activity discovery landscape is changing to be more engaging
Figure 26: Source of discovery for activities, by age group, February 2020
MARKET FACTORS
Unemployment will lead to cautious spending
Figure 27: Initial unemployment claims, weekly, seasonally adjusted, 2000-20
Delay in further stimulus will delay travel industry recovery
KEY TRENDS – WHAT YOU NEED TO KNOW 
Food can be a momentous occasion
Hotels and homeshares fight for locality cred
Experiences can make the destination
A look into experiential travel’s future
WHAT’S HAPPENING
SecretEATS provides moment-in-time food experiences
Airbnb Experiences shows strength in locality
Hotels pivot to localized, niche services
Experiences ladder up to creating a destination
WHAT TO WATCH
The future of experiential travel
Driver: Wellbeing
2025
2030
Driver: Surroundings
2025
2030
Driver: Technology
2025
2030
THE CONSUMER – WHAT YOU NEED TO KNOW 
Travelers are escapists
Poor communication and hospitality can ruin an experience
The way to a traveler’s heart is through their stomach
Experiential travelers seek either well-known, or little-known experiences
Travelers will shell out for access
Destinations matter when it comes to experiences
Travelers see themselves as considerate…
…but want to be seen as worldly
TRAVEL GOALS 
Vacations are meant to make travelers forget
Figure 28: Travel goals, February 2020
Consumer thoughts on travel goals
Locality appeals to high-income travelers
Figure 29: Travel goals, by HHI, February 2020
Local Lookers are more local, Eager Experiencers more lonesome
Figure 30: Travel goals, by segment, February 2020
Vacations are a “me time” escape for women under 45
Figure 31: Travel goals, by age and gender, February 2020
Urban dwellers show more tolerance for crowds
Figure 32: Travel goals, by area, February 2020
BARRIERS TO ENJOYING EXPERIENCES
Transparency and communication are paramount
Figure 33: Factors that prevent enjoyment of travel experiences, February 2020
Service matters to experiential travelers
Figure 34: Factors that prevent enjoyment of travel experiences, by segment, February 2020
Higher-income travelers are less forgiving of poor service
Figure 35: Hotel and airline response’s effect on travel, by HHI, February 2020
Older, wealthier men appear to be the most sensitive to activity quality
Figure 36: Disappointing experience’s effect on enjoyment, by age and gender, by age and HHI, February 2020
COMPELLING EXPERIENCES
Food and festivals are the entry points to local culture
Figure 37: Most desired experiences, February 2020
Experiential segments tend toward fame or obscurity
Figure 38: Most desired experiences, by segment, February 2020
Famous routes can do more to drum up youth interest
Figure 39: Appeal of traveling famous routes, by age group, February 2020
Travelers may be more conscious about animal treatment in the future
Figure 40: Desire to interact with wild animals and streaming service adoption, by age group, April 2019-February 2020
DESIRED UPGRADES
Access is worth paying for
Figure 41: Desired upgrades, February 2020
Millennials are all about access
Figure 42: Upgrades worth paying for, by generation, February 2020
Eager Experiencers can’t put a price on experiences
Figure 43: Upgrades worth paying for, by segment, February 2020
Line-skipping can attract high-income tourists
Figure 44: Upgrades worth paying for, by HHI, February 2020
MAKING MEMORIES
The setting tells the story
Figure 45: Contributors to memorable travel experiences, February 2020
Young travelers go where the people are
Figure 46: Public spaces as memorable experiences, by age group, February 2020
The airport-as-destination idea may never take off
Figure 47: Transit hubs as memorable experiences, by age group and age of child, February 2020
ATTITUDES TOWARD FINDING EXPERIENCES
Travelers see themselves as mindful
Figure 48: Experience deal-breakers, February 2020
Young travelers and men are more thrill-seeking
Figure 49: Attitudes toward dangerous experiences, by age and gender, February 2020
Uniqueness is what you make of it
Figure 50: Attitudes about unique experiences, February 2020
The “Experience Generation” has trouble finding unique experiences
Figure 51: Attitudes about unique experiences, by generation, February 2020
Experience-hunting services can find a market among mid- to high- income travelers
Figure 52: Attitudes about unique experiences, by HHI, February 2020
ATTITUDES TOWARD SHARING EXPERIENCES
Experiences are about personal fulfillment
Figure 53: Attitudes toward sharing experiences, February 2020
Make young people more interesting
Figure 54: Attitudes toward experienced people, by age group, February 2020
Young men do it for the ’gram
Figure 55: Importance of social media in experience choice, by gender and age, February 2020
Younger travelers prefer taking experiences slowly
Figure 56: Attitudes toward the experiential lifestyle, by age group, February 2020
Consumer thoughts on exploring destinations
Gifting attitudes can be a bright spot in economic downturn
Figure 57: Gifting attitudes, by age, by parental status, February 2020
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Direct marketing creative
Abbreviations
Abbreviations