The Adventure Awakens: How Travel and Live Events Will Fuel the Experience Economy Surge in 2025

In the contemporary flourishing experience economy, individuals are increasingly prioritizing experiences over material items.

Today’s consumers — particularly Gen Z and younger millennials — are accumulating memories through distinct adventures and events, discovering satisfaction in significant moments.

In a recent blog entry on the future of consumer behavior, Ghost Retail highlighted the movement: “Millennials and Gen Z are moving away from accumulating belongings in favor of experiences that forge enduring memories. Whether it’s participating in music festivals, embarking on adventurous trips, or sampling new dining establishments, these generations seek unique and immersive experiences that enhance their lives.”

Memorable journeys frequently involve travel, hence it is unsurprising that the travel sector is thriving. The World Travel & Tourism Council recently projected that travel levels will rise at an average rate of 5.8% through 2032, a pace more than twice the projected growth for the overall economy. All demographics are traveling, with Boomers expending three times more per trip than their younger peers.

This type of growth signifies more than merely a niche opportunity. Travel was traditionally a luxury experienced by a select few — those with the financial resources or professional leverage that facilitated a nomadic lifestyle. However, several pivotal developments made travel mainstream, from the advent of jet technology to the deregulation of airlines, while the dot-com era enabled millions to research, plan, and execute their travel itineraries in innovative and dynamic ways.

Currently, the Gen-Z perspective is not only altering who travels, but also where and how they embark on journeys.

“Millennials and Gen Z are directing travel trends with a concentration on technology, sustainability, and a desire for distinctive and meaningful experiences,” remarked Varsha Akora, Senior Research Analyst at the travel industry publication Skift.

While mainstream Online Travel Agencies (OTAs) have generally aimed their technologies at conventional destinations and large-scale activities, the modern traveler craves a more unique and customized experience.

Democratization of Travel

Travelers “desire to discover the world in an innovative way, explore novel locales and partake in new activities,” asserted Steve Kaufer, Co-Founder and CEO of Tripadvisor. “Our data indicates that the majority aim to explore destinations in a more immersive and experiential fashion, and to feel more connected to the history and culture.”

As we contemplate the democratization of travel, three essential elements come to mind:

· Consumer Demand

· Technology

· Tour Operators Developing Products

Consumer Demand

In a recent report on discretionary spending, McKinsey & Company illustrated the substantial shift in consumer demand from “experiences” versus “things” (non-essential material possessions). The proportion of consumer expenditure on experiences has noticeably escalated and (aside from a brief dip during the COVID-19 pandemic) has continued to grow.

Travel expenditures are at their highest since 1960, as stated in a McKinsey study.

The concept of unique experiences in travel can manifest in various forms, as opportunities extend beyond just the destinations.

“We’re witnessing an increasing number of individuals not only traveling to attend events but also attending events because they are traveling,” stated Adam Rossbach, president at TFL, a ticketing and technology firm for live events. “Creating lasting memories such as attending a live event can enhance the overall travel experience and often becomes the highlight of the trip.”

Consider the Red Rocks Amphitheatre in Colorado. Some attendees may enjoy a concert of a band they aren’t familiar with simply because experiencing a show in the mountains presents a unique opportunity.

Travel providers also play a crucial role in offering distinctive experiences that forge lasting memories. For instance, McKinsey highlights that “the primary factor influencing customer loyalty within the lodging sector is ‘an experience worth paying for’ — not the product itself.

As choices for travelers expand, it has become increasingly important for all segments of the travel industry — from airlines and transport to accommodation and hospitality experiences — to provide more significant customer interactions that stand out amidst the noise.

Technology

To deliver those unforgettable experiences, travel companies are adopting new technologies to enhance travel efficiency and accessibility for a broader audience.

A vast amount of data exists within the travel and hospitality sector; however, leveraging that data has been hindered by a fragmented industry framework, often managed manually.or through disjointed systems throughout the travel value chain.

Now, artificial intelligence (AI) and machine learning are transforming the travel sector by scrutinizing this vast amount of data…as long as it can be effectively enabled and interpreted.

Yanolja, a prominent travel technology firm, recognizes this obstacle. Having dominated the Korean travel sector and now operating in more than 200 nations globally, the company provides extensive data-driven services to improve the efficiency and profitability of travel experience businesses. By digitally linking over 1.3 million travel firms and 17,000 distribution channels, Yanolja can offer inventive, scalable solutions that unlock the realm of travel.

The crux lies in leveraging Vertical AI tailored for travel.

“Generative AI systems can serve as excellent personal assistants, but they lack the sector-specific expertise essential for developing genuinely effective and insightful travel solutions,” stated Jeff Kim, CEO of Yanolja Cloud.

By merging vast proprietary data with Vertical AI-focused solutions designed specifically for travel companies (encompassing its intrinsic skills in language and terminology), Yanolja is having a significant influence on its clients and their operational efficiency and customer relationships.

“Post-pandemic, the concept of ‘bleisure travel,’ blending work hours with personal time, has become standard,” mentioned Lars Parmekar, Director at Capillary. “The foundational data and technological requirements must empower the capability to allow that business traveler to extend their journey. Possessing zero-party data and integrating it to provide what the consumer desires will be crucial for delivering just-in-time content to this consumer.”

Tour Operators Crafting Budget-Friendly Products

Ultimately, brands must create products that consumers desire and that simplify their travel experiences, making them more memorable.

The traditional travel agent has been supplanted by technology-driven and personalized planning solutions for travel and trip management. A variety of specialized tour operators have surfaced, concentrating on particular types of experiences and demographic segments.

For instance, entrepreneurs who are digital nomads can discover various locations from which to work, and older singles can arrange excursions that merge education with adventure. These are just two illustrations of the vast array of distinct experiences these operators offer.

I recently visited Croatia and utilized Trafalgar for a segment of my journey. Upon my return, I connected with Melissa DaSilva, interim CEO of Trafalgar.

“Travel is no longer perceived as a luxury—it has become a vital part of well-being, granting travelers the opportunity to learn about the world and themselves,” noted DaSilva. “However, no two travelers are identical, and it’s our duty as an industry to address the varied needs of everyone who aspires to explore. For some, the perfect trip may involve a leisurely Mediterranean cruise, while others might yearn for an off-the-beaten-path adventure in the Rocky Mountains or a meticulously curated journey through Tuscany’s rolling hills.

“While not every company can fulfill the requirements of every traveler, we can facilitate the process for those who select us. Trafalgar is committed to making travel more accessible, offering exceptional value, and catering to our guests’ tastes by expanding to new locales, introducing diverse niche group travel options, and minimizing our ecological footprint.”

Consumers turn to brands like Trafalgar, Back Roads, Marriott Vacations, and others because they streamline the purchasing process and mitigate the risks involved in the journey.

The urge to explore seems everlasting, but the methods by which we uncover new destinations, plan trips, and create our itineraries with AI solutions elevate travel to an entirely new tier of personalization and simplicity. With the experience economy in full swing, and Gen Zers and Millennials driving widespread adoption of AI, we can anticipate an increasing number of unique travel experiences intertwined with live events.