Research of Experiential Travel shows that vacation habits have changed significantly in recent years, particularly in the wake of the pandemic. According to Trip Advisor’s Travel Report, nearly three-quarters of visitors are open to seeing new locations, with other goals, such as experiencing local culture and history, drawing in close behind.
According to 90% of those who took part in the Razorfish survey, the most valuable souvenir from a trip is the anecdote you can tell about it. Additionally, 79% of people who traveled said that the most significant thing isn’t seeing new places but rather the personal growth you experience. In addition, 50% of millennials and Gen Zers who took the survey expressed a desire to travel with an element of adventure and danger.
The name itself came from Expedia. Their data reveals that among vacationers, 40% aim to sample exotic cuisines, 31% seek out regional specialties, and 23% seek out unique, off-the-beaten-path experiences and locations.
To sum up, modern vacationers aren’t interested in spending their days on an all-inclusive resort poolside sipping cocktails or riding the sightseeing bus that comes with a prearranged group tour (though, to be fair, some still do).
Travelers nowadays aren’t content to sit back and relax; they want to fully immerse themselves in the local culture and experience exciting new things. In light of the travel industry’s need to meet consumer demand, let’s look at Experiential Travel and how companies in the sector can profit from the growing need for unique and exciting vacations.
Explain what an experiential Travel is.
The term “experiential travel” refers to a vacation that encourages visitors to immerse themselves in the local culture, history, and environment to make lasting memories. The plot revolves around exploring exotic locales, avoiding tourist traps, experiencing authentic local culture, and generally living the good life. And by “actual activities,” we do not merely mean that. Even a more unconventional place to stay, like a treehouse or glamping cabin, can provide once-in-a-lifetime adventures.
Many people mistake immersive and adventure travel for experiential tourism.
these ideas are not equivalent. The other two types of travel are subsets of Experiential travel. Let me explain.
To immerse oneself in a foreign culture when traveling typically entails mixing with locals, participating in traditional activities, attending local events, and generally living like a local. Things like going to a local flea market or yoga class on the weekend, staying in a private residence instead of a hotel, or helping at a nearby field all fall under this category.
On the other hand, adventure travel is primarily concerned with physical exertion. Camping and hiking are examples of moderately energetic but generally safe activities; on the other hand, skydiving, rafting, bungee jumping, mountain climbing, and similar activities are more on the sports and adrenaline-rush side.
The first group emphasizes developing meaningful relationships with natives and learning about their culture. In contrast, the second group emphasizes engaging in physical activity outside (which either group can undertake independently or within one’s nation).
Now that we’ve covered the groundwork, let’s dive into how companies can assist thrill-seekers in creating the holiday of their dreams.
The experiential travel ecosystem: distribution channels, spokespeople, business models, and technology
Consider these possibilities if you own a travel company, are planning to start one, and are interested in cashing in on the experience tourism trend.
Suppliers of local services: laying the groundwork
It is the local suppliers who manufacture the first travel goods. As previously said, experience travel is closely associated with genuine, traditional behaviors that can only be shown by natives or unusual, specialty services offered by specialist companies.
Real-world instances. An amusement park, a Bedouin who rents camels, a ski resort, or even a Chinese farmer showing off his rice crop could all be considered entities offering tours and attractions (T&A) services. They could be regarded as tour operators if their job description includes escorting visitors or planning guided excursions (be a pub crawl, coffee sampling, mountain trip, etc.).
Distribution and sourcing of inventory. Rather than sourcing inventory, local suppliers are responsible for distributing it to all parties involved, including the final consumer.
Advancements in technology. As a result of their lack of or inadequate digitization, small businesses often rely on spreadsheets for operational management and manually enter data and update availability through distributors’ extranets. Software for creating itineraries or managing channels , or even a specialized, multi-functional platform for tour operators can be helpful for larger companies with tasks like scheduling, analytics, partner connections, multi-channel distribution, and more.
Experiential Travel agencies: offering comprehensive solutions
Tour operators are businesses in the Experiential travel industry that plan itineraries, put together multi-part tour packages, sell them to agents or individuals planning the trip, and are ultimately responsible for the traveler’s satisfaction throughout the journey.
People looking for Adventure travel can find something with most trip operators. Such experiential travel items are a component of the broader portfolio, whether organized by the company or sourced from third-party vendors.
Real-world instances. Among the many different types of companies, tour operators are one of the largest. Not only do some vast and well-known companies employ their inventory, but they also run their own airline or hotel chains.
Also, specialty tour operators cater to specific interests, such as Intrepid Travel, Exodus, and Adventure. Travel is all focused on experiencing travel. Abercrombie & Kent, Scott Dunn, Black Tomato, ETG, and others specialize in creating one-of-a-kind luxury itineraries for each client. Also, as mentioned before, smaller local businesses participate by selling a single or several local items, such as guided tours, safaris, culinary lessons, or other local activities.
Distribution and sourcing of inventory. Tour operators sell products either made by themselves or sourced from nearby vendors. They sell to OTAs, DMCs, and other operators, put their wares on marketplaces, or deal with customers in person or online.
Advancements in technology. Again, the company’s size and resources come into play here. While major companies use a comprehensive, specialized system or create a unique solution to meet all operational demands, smaller operations make do with spreadsheets, emails, and phone calls. Mid-sized operators frequently use standalone modules to simplify various parts of their business. These modules can help create and schedule tours, manage online bookings, customer relationships, content management, reporting and analytics, and more.
A suite of application programming interfaces (APIs) to enable integration and sharing of product details with partners is commonly developed by larger firms to automate and facilitate business-to-business contact. Check out our APIs in travel explainer video if you need some background.
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