The Experiential Traveler - US - April 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
Figure 1: Attitudes toward travel experiences, February 2018
The issues
The dichotomy of the experiential traveler
Figure 2: Travel experiences, February 2018
Business travel accounts for 20% of domestic trips
Figure 3: Total domestic person-trips*, 2018
The opportunities
Need for expert curation in experiential travel
Figure 4: Destination inspiration, February 2018
Innovative concepts and branding in accommodations
Business travel – Wellness counts
Figure 5: Travel experiences have done or plan to do, February 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
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
State of the travel industry
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
Figure 7: Category engagement – Vacations and tourism, February 2018
Consumers want each vacation experiences to be unique
Figure 8: Attitudes toward travel experiences, Summer 2017
Leisure domestic trips outnumber those for business
Figure 9: Total domestic person-trips*, 2015-20
Traveler segmentation: Explorers, Adventurers, and Relaxers
Figure 10: Travel experiences, by consumer segmentation, February 2018
MARKET PERSPECTIVE
The role of experience across the travel spectrum
Budget travel
Luxury travel
Package travel
Business travel and “bleisure”
MARKET FACTORS 
Positive DPI supports consumers’ ability to fund travel experiences
Figure 11: Disposable personal income change from previous period, January 2007-December 2017
High consumer confidence bodes well for discretionary travel market
Figure 12: Consumer Sentiment Index, January 2007-January 2018
Population growth is favorable for market
Figure 13: Population aged 18 or older, by age, 2013-23
Shifts in travel by generation
Figure 14: Population aged 18 or older, by generation, 2018
Asian population important for travel marketers
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 
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?
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?
The ideal of experiential travel vs. the dangers of overtourism
WHAT’S NEXT?
Expanding the breadth and depth of experiential travel opportunities
Spotlight: Cruising hits all the right marks
THE CONSUMER – WHAT YOU NEED TO KNOW 
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 
Explore new places and time with family/friends are top travel interests
Figure 17: Travel experiences, February 2018
Young travelers most likely to leave their comfort zone
Figure 18: Interest in leaving comfort zone and being off the grid, by age, February 2018
Figure 19: Interest in visiting famous places and learning about new cultures, by age, February 2018
Asians skew toward experiential travel
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
Figure 21: Travel experiences, by consumer segmentation, February 2018
TRAVEL EXPERIENCES SHAPE IDENTITY
Figure 22: Travel experiences as part of identity, February 2018
25-44s are most likely to say travel experiences shape their identity
Figure 23: Travel experiences as part of identity (net agree), by age, February 2018
Explorers say their travel experiences shape who they are
Figure 24: Travel experiences as part of identity (net agree), by consumer segmentation, February 2018
TRAVELERS PREFER NEW DESTINATIONS AND LOCAL EXPERIENCES
Figure 25: Travel preferences, February 2018
Younger age groups prefer home shares
Figure 26: Travel preferences (net agree), by age, February 2018
Explorers prefer the immersive travel experience
Figure 27: Travel preferences (net agree), by consumer segmentation, February 2018
VALUING EXPERIENCES OVER THINGS
Figure 28: Attitudes toward travel, February 2018
Younger age groups are most likely to travel to keep up with peers
Figure 29: Attitudes toward travel (net agree), by age, February 2018
Adventurers want to experience new things – just not alone
Figure 30: Attitudes toward travel (net agree), by consumer segmentation, February 2018
MOST IMPORTANT TO VACATION EXPERIENCES 
Accommodations are most important to vacation experience
Figure 31: Important factors in vacation experiences, February 2018
Older travelers more likely to place importance on accommodations
Figure 32: Importance of accommodations in vacation experiences, by age, February 2018
Figure 33: Importance of entertainment, outdoor and tourist activities in vacation experiences, by age February 2018
TRAVEL EXPERIENCES – HAVE DONE OR PLAN TO DO
Lodging plans are up in the air
Figure 34: Lead time for booking hotel/accommodations, April 2018
Figure 35: Travel experiences have done or plan to do, February 2018
Under-35s are looking for something different in future travel plans
Figure 36: Travel experiences plan to do – Active and different, by age, February 2018
Asians focus on activities for future travel plans
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
Figure 38: Travel experiences plan to do, by consumer segmentation, February 2018
DESTINATION INSPIRATION
Personal recommendations drive destination choice
Figure 39: Destination inspiration, February 2018
Destination inspiration sources by age predictable
Figure 40: Destination inspiration – Social, by age, February 2018
Travel websites influences higher earners
Figure 41: Destination inspiration – Travel review sites and social media, by household income, February 2018
Adventurers rely on personal recommendations for destination planning
Figure 42: Destination inspiration, by consumer segmentation, February 2018
ACTIVITY INSPIRATION
Local recommendations have more influence in activities
Figure 43: Activity inspiration, February 2018
Social media influences activity inspiration among young travelers
Figure 44: Activity inspiration, by age, February 2018
Explorers leverage social media for activity inspiration
Figure 45: Activity inspiration, by consumer segmentation, February 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Consumer qualitative research
Abbreviations and terms
Abbreviations
Terms
APPENDIX – CONSUMER 
Vacation activities of interest
Figure 46: Select vacation activities like to do, by gender, summer 2017
Figure 47: Select vacation activities like to do, by age, Summer 2017
Figure 48: Select vacation activities like to do, by household income, Summer 2017