The experiences sector in the travel industry has seen significant growth in recent years, with travelers increasingly choosing to spend money on experiences over possessions. The sector has seen an increase in venture capital investment, according to Skift Research’s Venture Investment Trends in Travel 2024 report. However, defining the experiences sector is challenging, as it encompasses a wide range of services such as day tours, activities, in-destination services, and transfers. Companies like GetYourGuide, Klook, and Viator are focusing on specific categories and geographical markets to effectively meet customer needs in this diverse market.
Specialization is key in the experiences sector, as a one-size-fits-all approach is ineffective. Companies need to understand specific markets, such as the Asian travel market, by considering local preferences, payment methods, and cultural nuances. Technology, particularly machine learning and AI, plays a crucial role in personalizing recommendations for customers. Businesses are working on innovative marketing strategies, like influencer partnerships and social media campaigns, to differentiate their brands and educate consumers about the experiences they offer.
The challenges of balancing supply and demand in the experiences market are highlighted in the discussion. Many operators are still offline, and there is a need for a robust supply chain to handle the diverse range of experiences effectively. Companies must invest in technology and supplier relationships to ensure a seamless booking experience for consumers. Eric Gnock Fah of Klook emphasizes the importance of understanding the in-destination needs, including transportation options, while Kristin Dorsett of Viator focuses on what American customers desire, primarily tours and attractions.
The panel discussion at the Skift Global Forum in New York emphasizes the complexity of the experiences market and the need for deep expertise to navigate its nuances effectively. The importance of a specialized booking platform for experiences is stressed, as much of the market remains offline and many operators lack the necessary infrastructure. The panelists discuss the differences in booking behavior, with customers increasingly booking experiences spontaneously during their travels. Brand positioning is crucial in a crowded market, with companies leveraging social media and influencer marketing to reach younger, independent travelers.
Overall, the executives express excitement about the growing attention on experiences as a significant segment of the travel industry. The experiences sector offers diverse opportunities for companies to innovate and cater to customers’ evolving preferences. By focusing on specialization, technology, marketing, and overcoming supply and demand challenges, companies can position themselves for success in this booming sector. The panelists acknowledge the competitive landscape, as well as the emerging competition from platforms like Airbnb, but remain optimistic about the potential for growth and innovation in the experiences market.
