Opportunity rising in tours, activities as interest in experiences continues

Tours, activities and attractions — in short experiences — have been a hot topic in the travel industry over the past few years.

And with its staying power as a driver of travel decision-making, new growth opportunities exist, according to experts. 

"I think it has increased, more and more," said Luuc Elzinga, founder and president of Tiqets during an interview in the PhocusWire studio at The Phocuswright Conference 2024. He said consumers' focus on experiences over material goods is fueling these new opportunities.

Christian Watts, founder and CEO of Magpie, who joined Elzinga in the studio, said there's certainly room for companies both small and large on the distribution side of the tours and activities sector.

That opportunity comes as experiences are rising on the list of travelers' priorities during the booking process, according to industry leaders. With events like The Taylor Swift Eras Tour and the Olympics prompting fans to travel across the world and boosting business, the value of experiences in travel decision-making has come into focus. 

“It's the reason to travel,” Elzinga said. “It's the reason why people remember where they've gone.”

Elzinga said consumers' interest in experiences is helping to drive bookings in other sectors, such as flights and hotels.

“I think it was always destined to be … I think socials fell into it. Everyone's looking at … TikTok and Instagram … the final experience is all you watch on the socials,” Watts said. “And I think the … airlines are looking to upsell. So they're looking for that ancillary income, as they call it. And we are that — or we're one of them, for sure.”

And Elzinga said that because consumers are prioritizing experiences, those bookings are sometimes taking precedence over booking other travel elements such as accommodations and flights.

“I think those two have really become commodities, right? I will find a hotel, I will find a flight,” he said. “And what we see now more is that there's uncertainty about, ‘okay, is my tour to the Coliseum available?’ Right? So … people want to move uncertainty into certainty, so they are booking it … more in advance.”

Watts and Elzinga also discussed how they think artificial intelligence will change the experiences sector, online travel agencies, Airbnb and its experiences journey and more in a detailed conversation with senior reporter Morgan Hines.

Watch the full discussion below.

Also at The PhocusWright Conference, Elzinga joined Sarah Dines, chief commercial officer at Viator and Jon Owens, CEO of Go City for an executive panel entitled “Marketing Authentic Adventures” led by Madeline List, manager of research and special projects at Phocuswright.

Watch or listen to the full discussion below.