The Final Journey: REI Bids Farewell to Adventure Travel Experiences

The outdoor retailer REI declared today that it is discontinuing its “Experiences” division, thereby ceasing all adventure travel excursions, day tours, and instructional classes. Consequently, hundreds of full-time employees and part-time guides will face job terminations, effective this week.

The co-op revealed in a statement it incurred millions of dollars each year to fund Experiences. Even at its zenith, the brand stated, the initiative failed to yield a profit.

“We have undergone various iterations and examined multiple alternatives to sustain this business and maintain employment. We’ve held out as long as we could, but the truth is that Experiences has become an unprofitable venture for the co-op, necessitating a change in direction,” stated REI’s president and CEO Eric Artz in a press release, announcing the conclusion of REI Experiences.

Individuals currently registered for trips or day activities with REI will be given a full reimbursement. The brand also announced it intends to tackle “any associated non-refundable costs as needed.”

This decision comes less than a year following REI’s expansion of its Experiences program with assistance from Outdoor Afro Inc. — an initiative that introduced trips “designed to incorporate Black American history and culture (both past and present) and showcase local Black-owned businesses” — aimed at enhancing participation and accessibility.

The co-op indicated that it plans to focus its investments on its primary business of specialized outdoor retail.

“I understand that this is challenging news,” Artz expressed. “The upcoming weeks will continue to be difficult as we dismantle a beloved segment of our business and bid farewell to colleagues.”

40+ Years & Millions of Adventures: REI Experiences Closes Its Doors

The Experiences initiative has been part of REI’s business framework for over 40 years, as stated by the brand. During that period, it provided its clients with countless adventures, ranging from single-day hikes to multi-day river excursions, adventure travel, and beyond. Customers had the ability to book their preferred experience directly through the REI website.

In 2024, the program reached 40,000 individuals, although REI noted that this figure accounts for merely 0.4% of its clientele.

“When assessing the total costs associated with running this venture, including expenses related to marketing and technology, we are losing millions annually while subsidizing Experiences,” Artz stated. “Every potential path to profitability we considered would have necessitated diverting more time, energy, and focus from other business areas that serve significantly larger customer bases, produce more favorable financial results, and have a more substantial impact on our mission to inspire outdoor participation.”

The Experiences initiative employed 180 full-time workers and 248 part-time guides across the country. REI announced that all full-time staff affected by layoffs will continue receiving their salaries through March 9, 2025. They will also maintain benefits until the end of March and qualify for separation benefits.

Employees who divided their time between store duties and the Experiences initiative will engage in discussions with their managers regarding other potential roles suitable for them. Part-time workers will keep their benefits until January 2025 and are eligible for a severance payment. Additionally, all impacted REI employees will receive a Summit payout for 2024 and will qualify for other positions within the company, as stated by REI.

Refocusing on Retail Foundations

The Experiences division was a trial that REI successfully managed for numerous years. It played a significant role in REI’s long-term goal to engage 3 million individuals in outdoor activities each year. Yet, with this announcement, the trial has come to a close.

“Our foundation lies in the gear and clothing we offer and the outdoor experiences they facilitate,” Artz expressed. “This has been at the heart of our operations for 86 years — and I am convinced that by concentrating on what we excel at, we can and will thrive.”

REI indicated it remains convinced of its relevance in outdoor education and expertise. Nonetheless, Artz mentioned that it must “reevaluate and refine how we provide classes and education to guarantee they are pertinent to our customers, aligned with our mission, and economically sustainable.”

Moving ahead, REI intends to concentrate on expanding its key pursuits such as camping and backpacking, running, and hiking. It also aims to enhance sales, profitability, and cash flow by channeling its resources into superior tools for managing its stock. Ultimately, it seeks to elevate its online and in-store customer interactions with more personalized experiences, visual merchandising, and other enhancements.

“As a cooperative, we are structured to cultivate a healthy, profitable business that enables us to support our members, our staff, and the community,” Artz stated. “We will provide further details about our long-term strategy to achieve this next month.”