Why the travel industry should buy into the experience economy

It’s
a slightly existential time to be working in the travel industry. The animating
questions are almost comically broad: What do people want? And how do you
package something as ephemeral as experience?

Since
the pandemic and “revenge travel” era, there has been lots of chatter about the
“experience economy.” Although the concept isn’t new, its latest iteration is a
response to the burnout that came with side hustle culture in its initial
phase. Millennials and Gen Z are no longer interested in earning as much money
as possible at the expense of their time and community. 

These
generations don’t view isolation, whether self-imposed or not, as at all
attractive – the loneliness epidemic and rampant disillusionment
with dating apps is proof of as much. Young people don’t want
to look at screens constantly in pursuit of cash and, if they’re lucky,
romantic connection. They want real community and meaningful experiences, and
they want these things to go hand in hand.

Travel
is an obvious outlet for young people in pursuit of experience, and the travel
industry and travel startups in particular are well poised to seize this
opportunity. Solo travel is on the
rise, and new models of moving through the world are more attractive
than ever. Travel startups are rising to the occasion, going all in on young
people’s rearranging of priorities. They want experiences, they want to see the
world and they want community. 

Roadsurfer rents out
mobile homes and stylish VW campervans, catering to both families and young
people looking for adventure but not necessarily keen just taking another
discount flight to another country. There’s Rover, which
connects pet owners with “dog borrowers” on holiday who want to meet a fellow
pet lover and get some quality pooch time. Trusted House Sitters offers a
unique house-sitting program in exchange for pet and house care. And Conservation Travel
Africa, enables people passionate about wildlife to engage in essential
conservation and anti-poaching work.

In
all these examples, the traditional tourist exchange doesn’t apply. These
startups are counting on ephemeral ideas of edifying and enriching experience,
connection and community to make satisfied and repeat customers out of the
people who use them. They’re betting on the freedom of the road, the joy of
playing with a dog, the sense of purpose found in charity work and how
different staying in a home versus a hotel feels. A new kind of value exchange
– education, personal development, charity work and genuine connection – has
taken precedence. People want to live their lives and find meaning, not just
make money. It’s borderline philosophical.

This
idea of the experience economy and the evidence of people’s changing values
served as guiding lights as WeRoad entered the travel sector. We designed a
group travel program where the tour guides are travelers too. We figured
that the people who want to take our trips – the people who are seeking out
community, growth and new experiences – are also the people best suited to
lead them. Since then, we’ve vetted, hired and trained some 2,500 travel
coordinators. 

From
both a business and a more profound perspective, community creates loyalty. If
you coordinate meaningful shared experiences, you’ll foster a community based
on the simple fact that people find them meaningful and want to continue
taking part. In other words, if you build it, they will come, and then they
will tell you how to make it better and maintain it.

There
are no tricks. The travel companies that will succeed on the back of the
experience economy are those that understand the link between shared
experiences and community. They’ll be the ones that respond to suggestions and
concerns from that community, knowing that their involvement at every step in
the process drives retention, loyalty and scale-up success.

The
idea of experience as a currency isn’t necessarily new. The people who care
about experience don’t need to be convinced further. We found that they just
need to be given the trust and opportunities and structure to pursue it. Give
them that, and they’ll be the kind of loyal brand ambassadors no marketing
budget can buy.