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The tours and experiences space is evolving rapidly. This is not only a major opportunity for tour operators and travel agents, but also for other travel sub-sectors.

Robin Gilbert Jones

In a new report, How authentic experiences are shaping the new tourism economy, Skift Research examines this rapidly evolving sector and its implications for businesses.

Many studies have shown that experiences are the most influential part of the travel planning process. But the experiences sector is relatively new and poorly understood.

Sometimes considered the “last outpost” In the travel industry, the experiences sector is an increasingly attractive space, not only for tour operators and travel agencies, but also for the travel industry as a whole, hotels and even airlines. It’s becoming more and more interesting. There is also a rapid shift from offline to online, creating something akin to a gold rush in the travel industry.

Modern travelers, particularly among millennials and Gen Z age groups, prioritize exploration and discovery and seek authentic local experiences over more conventional sightseeing.

This is particularly relevant for tour operators who are abandoning traditional “tourist trap” business models for mass tourism and emphasizing locality and authenticity. It’s also not surprising that this trend is accompanied by growing resistance to overtourism.

So, what do travelers expect from tour guides?

Not all travelers prefer guided experiences, as a sizable group still favors solo travel. However, demand for tours is clearly growing, fueled by increased digital access and better booking experiences. According to a study conducted by Wakefield on behalf of GetYourGuide, 21% of travelers strongly preferred a local guide for a tour, and 65% indicated some level of preference for having a local guide show them around.

When asked about their “ideal guided tour,” 68% of travelers prioritize discovering “hidden gems” and unique perspectives that only a local can offer.

According to the same study, 49% of those surveyed wanted to access areas usually closed to the public – a benefit of working with local guides who are familiar with regulations and permits.

According to Skift US Travel Tracking Report70% of people surveyed in the United States agree that they prefer to spend their money on experiences rather than physical goods.

But what are these experiences? According to the same report, exploration is the top motivation for booking a day trip (27%), followed by the desire to learn about culture and history (19%) and trying to new activities and experiences (18%).

In fact, three in five American travelers believe a trip is pointless if they don’t experience the local culture. A Skift survey on Gen Z and Millennial Travel Trends found that travelers from the United States, United Kingdom and Germany primarily choose destinations for a mix of sightseeing, cultural activities and entertainment.

Additionally, GetYourGuide’s study found that activities (at 27%) are the top factor that drives travelers to extend their stay in a particular destination.

This is important not only for selling additional activities during the trip – which could lead to longer stays – but especially during the planning phase of the trip. At this stage, travelers decide both their activities and the length of their stay. The main factor influencing the length of their stay is the variety of activities available, which outweighs considerations such as budget, weather or accommodation.

These trends are not entirely new but have accelerated in recent years, requiring businesses to remain agile in a rapidly changing market. Following the Covid lockdown, the social aspect of travel has grown in importance, with guided tours providing key opportunities for interaction.

The educational value of the tours is also very appealing, especially for older travelers who appreciate the information provided by expert guides about history, culture and environment. In the digital age, experiences are a source of identity and meaning for travelers and, despite challenging geopolitical and economic conditions, they continue to take precedence over other considerations.