The travel experience market has been rapidly growing, surpassing spending on consumer goods since 2019.
Industry leaders gathered at the Skift Global Forum to discuss pivotal aspects influencing this shift, focusing on technology, social media, and traveller behaviour.
Travel experiences have increasingly become the focal point of trip planning. Spending on these experiences has surged by one-third since 2019, surpassing traditional consumer goods.
A research report by Skift and McKinsey identifies the travel experience market as a $1 trillion opportunity globally. Sixty-three percent of industry leaders believe that travellers prioritise experiences and plan their trips around them.
Sports tourism is emerging as a major component of the travel experience landscape. The global sports tourism market, valued at $683 billion in 2023, is anticipated to more than triple by 2030.
According to the UNWTO, sports tourism accounts for 10% of global tourism expenditure. Sixty-three percent of executives report that sports events significantly boost destination interest post-event.
Social media serves primarily as a source of inspiration rather than a direct booking tool.
While 57% of younger travellers turn to social media for travel ideas, merely 14% rely on it for booking. A majority, 79%, prefer recommendations from alternative sources.
This suggests that while visually appealing, social media often plays a secondary role in concrete travel decision-making.
Generative AI is gaining traction as a tool for travel inspiration and booking insights. Thirty-six percent of industry leaders view its primary role as aiding in ideation.
This technology also aggregates reviews, providing a comprehensive view of destinations, although only 29% see its current use in customer service as optimal.
The potential for AI to offer personalised travel experiences is vast, promising more developments in the sector.
Destinations looking to capitalise on sports tourism must adopt proactive strategies. Sixty-three percent of decision-makers agree on the necessity of maintaining momentum beyond the event.
This involves developing comprehensive plans to extend interest, ensuring economic benefits are sustained long-term.
Such strategies are crucial for maximising the economic impact and bolstering the local economy post-event.
Modern booking processes are increasingly shaped by technology, with an emphasis on user-friendly platforms.
Travel executives point to an elevated need for technological integration in booking systems, facilitating smoother consumer experiences.
Advancements in tech allow for more personalised and efficient service, marking a significant shift in how bookings are handled.
The evolving nature of traveller expectations is at the forefront of industry discussions.
With a focus on unique experiences, travellers are seeking more personalised itineraries, prioritising engagement over traditional travel considerations.
In conclusion, the travel industry is witnessing a profound shift towards experience-oriented travel.
Industry leaders are continuously adapting to this change, leveraging technology and innovative strategies to meet new traveller expectations.