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.