Travel And Live Events Will Drive Experience Economy Growth In 2025

In today’s thriving experience economy, consumers increasingly value life experiences over material goods.

Modern consumers — especially Gen Z and younger millennials — are collecting memories through unique adventures and events, finding fulfillment in moments that matter.

In a recent blog post on the future of consumerism Ghost Retail emphasized the trend: “Millennials and Gen Z are ditching the accumulation of possessions in favor of experiences that create lasting memories. Whether it’s attending music festivals, going on adventurous trips, or trying out new restaurants, these generations crave unique and immersive experiences that add value to their lives.”

Unforgettable adventures often come with travel, so it is no surprise that the travel industry is booming. The World Travel & Tourism Council recently estimated that travel levels will increase an average of 5.8% through 2032, a rate more than double the forecast for overall economic growth. All generations are traveling, with Boomers spending three times as much per trip as their younger counterparts.

This kind of growth represents more than just a niche opportunity. Travel was once a luxury experienced by the few — those with the means or professional resources that enabled a life on the go. But several key milestones brought travel mainstream, from the development of jet propulsion to airline deregulation, and the dot-com era allowed millions to research, plan, and execute their travel plans in new and dynamic ways.

Now, the Gen-Z mindset is not only changing who is traveling but also where and how they travel.

“Millennials and Gen Z are steering travel trends with a focus on technology, sustainability, and a quest for distinctive and meaningful experiences,” wrote Varsha Akora, Senior Research Analyst at travel industry publication Skift.

While mainstream Online Travel Agencies (OTAs) have typically focused their technologies on mainstream destinations and large-scale experiences, the new travel consumer demands a more unique, tailored experience.

Democratization of Travel

Travelers “want to explore the world differently, see new places and do new things,” said Steve Kaufer, Co-Founder and CEO of Tripadvisor. “Our data reveals that the majority want to explore destinations in a more immersive and experiential way, and to feel more connected to the history and culture.”

As we think about the democratization of travel there are three critical ingredients:

· Consumer Demand

· Technology

· Tour Operators Creating Product

Consumer Demand

In a recent analysis of discretionary spending data, McKinsey & Company showcased the dramatic shift in consumer demand on “experiences” vs. “things” (non-essential material goods). The share of consumer spending on experiences has dramatically increased and (other than a brief slowdown during the COVID-19 pandemic) has continued to expand.

Travel spending is at its highest level since 1960, according to a McKinsey study.

The idea of unique experiences in travel can find many forms as there are opportunities beyond the destination.

“We’re seeing more and more people not only travel to attend events but attend events because they’re traveling,” said Adam Rossbach, president at TFL, a live event ticketing and technology company. “Creating memories like attending a live event can add to the overall experience of travel and oftentimes is the favorite part of the trip.”

Think about the Red Rocks Amphitheatre in Colorado. Some people might attend a show of a band they’re not familiar with just because attending a show in the mountains is a cool experience to have.

Travel providers can also help deliver a distinctive experience to create formidable memories. For example, McKinsey notes that “the top factor influencing customer loyalty in the lodging sector is “an experience worth paying for” – not the product.

As options for travelers expand, it has become even more crucial for all touchpoints in the travel industry — from airlines and transportation to lodging and hospitality experiences — to deliver more meaningful customer moments to break through the clutter.

Technology

In order to deliver those memorable experiences, travel enterprises are embracing new technologies to make travel more efficient and accessible to a wider audience.

A tremendous amount of data within the travel and hospitality industry exists, but capitalizing on that data has been complicated by a fragmented industry infrastructure, often processed manually or through unintegrated systems across the travel value chain.

Now, artificial intelligence (AI) and machine learning are revolutionizing the travel industry by analyzing this immense data…provided it can be properly enabled and interpreted.

Yanolja, a leading travel technology company, understands this challenge. Having led the Korean travel market and now operating in over 200 countries worldwide, the company offers comprehensive data-driven services to enhance the efficiency and profitability of travel experience companies. By digitally connecting over 1.3 million travel companies and 17,000 sales channels, Yanolja is able to provide innovative, scalable solutions that open up the world of travel.

The key is utilizing Vertical AI specialized in travel.

“Generative AI systems may make for brilliant personal assistants, but lack the industry specialization needed to build truly effective and insightful travel solutions,” said Jeff Kim, CEO at Yanolja Cloud.

By combining immense proprietary data with Vertical AI-driven solutions built specifically for travel companies (with its inherent specialties in language and terminology), Yanolja is having an enormous effect on its customers and their efficiency and customer connections.

“Post-pandemic, the concept of “bleisure travel,” combining work time with personal time became commonplace,” said Lars Parmekar, Director at Capillary. “The underlying data and technology requirements need to empower the ability to allow that business traveler to extend the trip. Having zero party data and integrating it to deliver what the consumer wants will be critical to serving just-in-time content to this consumer.”

Tour Operators Creating Affordable Products

Ultimately, brands must build products that consumers want and that make their travel experiences easier and more memorable.

The old-school travel agent has been replaced by technology-driven and personalized solutions for planning travel and managing trips. A wide range of targeted tour operators have emerged, focusing on specific types of experiences and demographic groups.

For example, entrepreneurs who are digital nomads can find different locations from which to work and older singles can book adventures that combine education with adventure. Those are just two examples of the wide range of unique experiences these operators provide.

I recently traveled to Croatia and used Trafalgar for a piece of my trip. After I returned, I connected with Melissa DaSilva, interim CEO of Trafalgar.

“Travel is no longer seen as a luxury—it’s become an essential part of well-being, offering travelers the chance to learn about the world and themselves,” said DaSilva. “However, no two travelers are alike, and it’s our responsibility as an industry to cater to the diverse needs of everyone who dreams of exploring. For some, the ideal trip might be a leisurely Mediterranean cruise, while others may crave an off-the-grid adventure in the Rocky Mountains or a carefully curated journey through the rolling hills of Tuscany.

“While not every company can meet the needs of every traveler, we can make it easier for those who choose us. Trafalgar is dedicated to making travel more accessible, offering exceptional value, and catering to our guests’ preferences by expanding to new destinations, introducing diverse niche group travel options and minimizing our environmental impact.”

Consumers look to brands like Trafalgar, Back Roads, Marriott Vacations and others because they simplify the purchase experience and take the risk out of the journey.

The desire to explore appears timeless, but the ways in which we discover new destinations, plan trips, and plan our itineraries with AI solutions takes travel to a whole new level of personalization and ease. With the experience economy in full bloom, and Gen Zers and Millennials fueling broad adoption of AI, we should see more and more unique travel experiences interwoven with live events.