The Skift Global Forum in New York featured discussions focused on the rise of experiences in the travel industry, shifting traveler behaviors, and the impact of technology on booking processes. Industry decision-makers shared their perspectives on these topics, including the growing importance of travel experiences and activities. According to a survey of over 1,500 travel industry executives, exciting experiences like mega-sporting events are becoming the starting point for many traveler itineraries. Social media and generative AI play crucial roles in inspiring travelers and influencing their decisions.
Travel experiences have become a focal point in the modern travel booking process, with spending on experiences increasing by one-third since 2019. The travel experience market represents a $1 trillion opportunity globally, outpacing growth in the consumer goods space. A majority of executives believe that travelers prioritize experiences when planning trips, with only a small percentage not influenced by experiences at all. This shift in behavior emphasizes the need for destinations to adapt to cater to this trend.
Sports tourism is a specific type of travel experience that is gaining global attention, with a market value expected to reach $2.1 trillion by 2030. Sixty-three percent of executives believe that sports tourism drives inbound spend and destination interest after the event. However, realizing the full potential of this market depends on proactive planning by destinations to extend the benefits beyond the live event. Maximizing interest and investment in sports tourism can help local economies reap rewards in the long term.
While social media plays a significant role in inspiring travelers, its impact on driving bookings is often overestimated. Gen Z and millennial travelers heavily rely on social media for travel planning, especially during the inspiration phase. However, the majority of travel executives prefer recommendations from other sources over social media when making booking decisions. As social media continues to evolve as a travel planning tool, it will be essential for destinations and travel companies to understand how to effectively utilize this platform in their marketing strategies.
Generative AI is another key source of traveler inspiration, with its primary use cases being ideation and aggregating reviews. This technology provides personalized customer experiences that can help inform travelers’ booking decisions. As generative AI continues to improve and humanize customer interactions, there is potential for further growth in its application within the travel industry. Ultimately, understanding how to leverage technology, experiences, and shifting traveler behaviors will be crucial for travel industry professionals to remain competitive in a rapidly evolving market.
