Shift Take

The tours and experiences space is evolving rapidly. This is not only a major opportunity for tour operators and travel agencies, but also for other travel sub-sectors.

Robin Gilbert-Jones

In a new report, How authentic experiences are shaping the new tourism economy, Skift Research looks at this rapidly evolving sector and the implications for business.

Several studies have shown that experiences are the most influential part of the travel planning process. But the experiences sector is relatively new and not well understood.

Sometimes considered “the last outpost” in travel, the experiences sector is an increasingly attractive space not only for travel companies and travel agencies, but also for the wider travel industry, with hotels and even airlines showing increased interest in it. There is also a rapid shift from offline to online, creating something close to a gold rush in the travel industry.

Modern travelers, especially among millennials and Gen Z age groups, prioritize exploration and discovery and seek authentic local experiences over more conventional visits.

This is particularly relevant for tour operators as they move away from traditional ‘tourist trap’ mass tourism business models to an emphasis on locality and authenticity. It is also not surprising that this trend occurs alongside a growing resistance to overtourism.

So what do travelers want from tour guides?

Not all travelers prefer guided experiences, as a significant group still prefer solo travel. However, demand for tours is clearly growing, fueled by increased digital access and better booking experiences. According to research by GetYourGuide Wakefield, 21% of travelers strongly preferred a local guide for a tour, and 65% indicated some level of preference for a local guide to introduce them.

When asked about their ‘ideal guided tour’, 68% of travelers preferred discovering ‘hidden gems’ and unique insights that only a local could provide.

According to the same research, 49% were interested in accessing areas usually closed to the public – a benefit of working with local guides familiar with regulations and permits.

According to Skift US Travel Tracker Report70% of US respondents agree that they would rather spend their money on experiences than physical goods.

But what are these experiences? According to the same report, exploration is the main motivation for booking a day tour (27%), followed by a desire to learn about culture and history (19%) and to try new activities and experiences (18%).

In fact, three out of five US travelers believe a trip is wasted if they don’t experience the local culture. A Skift poll about Generation Z and Millennial Travel Trends found that travelers from the US, UK and Germany primarily choose destinations for a combination of sightseeing, cultural activities and entertainment.

In addition, research from GetYourGuide found that activities (at 27%) are the number one factor driving travelers to extend their stay at a destination.

This is important not only for upselling additional activities during the trip – which could lead to longer stays – but especially in the travel planning phase. At this stage, travelers decide on both their activities and the length of their stay. The main factor influencing how long they choose to stay is the variety of activities available, which trumps considerations such as budget, weather or accommodation.

These trends are not entirely new, but they have accelerated in recent years, requiring companies to remain nimble in a rapidly changing market. Following the lockdown of the Covid pandemic, the social aspect of travel has gained importance, with guided tours providing key opportunities for interaction.

The educational value of the tours also holds strong appeal, particularly for older travelers who appreciate the information provided by expert guides about history, culture and the environment. In the digital age, experiences are a source of identity and meaning for travelers, and despite challenging geopolitical and economic conditions, they continue to rise in priority over other considerations.