The emergence of the experience economy as a central theme in the travel and tourism industry is of paramount importance for companies seeking to attract travellers, according to a new report.
GlobalData’s Experience Economy in Travel & Tourism report notes that “the tourism sector has undergone a significant shift away from traditional ‘sun and beach’ getaways and city breaks” in recent years. Two factors at play in driving this change have been the emergence of new technologies that allow users to browse options and the Covid-19 pandemic, which changed attitudes of some travellers to be more adventurous.
Smarter leaders trust GlobalData
“Leisure tourism now broadly encompasses traveller motivations, with meaningful experiences becoming a critical factor in decision-making for special-interest travel,” the report says. “This shift in consumer behaviour, while more pronounced among younger generations such as Millennials and Generation Z, is evident across all age groups and traveller demographics.”
As a result of this shift, GlobalData contends that there is a growing commoditisation of experiences accessible to all traveller types – and that travel and tourism companies should pursue this to ensure they remain competitive.
“As tourists become more connected and destinations and experiences more accessible, there is an ever-expanding array of unique offerings,” the report explains. “The relationship between travel and technology is becoming increasingly intertwined, and industry leaders must invest in technologies such as big data, cloud computing, the internet of things and artificial intelligence to remain competitive in today’s dynamic travel marketplace. This technological investment provides companies across the travel and tourism value chain with an opportunity to delve deeper into the desires and preferences of individuals, as well as their motivations for travel.”
To pursue offers that align with the growth of the experience economy, GlobalData’s report recommends that companies leverage data and artificial intelligence for personalisation, integrate sustainability into offerings, use storytelling for marketing, invest in hybrid experiences that combine physical and digital elements to enhance the way travellers engage with destinations and collaborate with local communities.
