Travelers are prioritizing experiences and so should the industry

The travel industry should prepare to lean into more interest-based experiences, according to a study from Arival, a specialist in events and research for the tours and activities segment.

The findings were published in the 2025 U.S. Experiences Traveler Outlook report, which surveyed 800 United States “experiences travelers”—adults who have taken a trip at least 100 miles from their home in the past year, stayed overnight on a trip and booked or experienced a qualifying tour, activity, attraction or experience.

According to the report, the “post-pandemic travel frenzy” is coming to a close. In 2024, frequent U.S. travelers took fewer trips for shorter durations, and they spent less on activities, attractions and tours. Economic concerns and inflation were two key factors in these shifts.

“The heyday of higher spend and more frequent trips is in the rearview mirror. Overall, travelers are planning fewer trips. Economic concerns continue to weigh on travelers [as] they head into the busy summer travel season of 2025,” the report reads.

However, when travelers do plan trips, experiences are top-of-mind, with 65% of survey respondents stating that experiences play “a significant role in their decision on where to go.” Survey data also revealed the fastest-growing experience categories, namely culinary, experiences with locals, festivals, sporting events and thematic tours.

The Arival study found that Gen Z and younger millennial travelers are booking experiences in advance. Previously, travelers tended to book tours and experiences after flights and accommodations, typically closer to their departure date or once they got to their destination. (This remains the norm for older travelers.)

According to Arival, the shift among younger travelers is “significant” and emphasizes the increased importance placed on experiences in the trip planning process.

The changing travel landscape also has implications for the travel industry, and Arival highlighted the need for companies to prioritize interest-based experiences. 

“Younger travelers in particular are more focused on prioritizing experiences in their trip planning, and the fastest-growing experience categories center around specific traveler interests, from sports to music to food,” the report said. 

“Operators that find new ways to design or repurpose their experience offerings to focus on these interests will stand out in an increasingly competitive landscape.”

In 2025 specifically, Arival warned that operators will be competing with one another on price and value due to the more “budget-conscious traveler.” In addition, the study indicated difficulties surrounding organic market growth.

An increased emphasis on experiences has been reflected across the industry. Airbnb’s new Experiences platform, in particular, has drummed up conversation in recent months. 

While the platform has been kept under wraps, the short-term rental platform has revealed some details, including Airbnb’s desire to increase usage of the platform. In a sponsored post in one of Arival’s email newsletters last month, Airbnb called for operators guides and experience providers to complete a form declaring their interest in being listed on the nascent platform.

More information is expected to come down the pike at the company’s “Summer Release” event in May. 

Tripadvisor executives have also spoken about the growth in experiences, with the company reporting record revenue in this category in 2024. In 2025, that success is anticipated to continue.

“This year, we also expect our experiences revenue to be the largest contributor of revenue to the group,” said Matt Goldberg, CEO of Tripadvisor Group, on the company’s Q4 2024 earnings call in February.

“For the first time, this progress is consistent with our strategic vision that the experiences category has become increasingly central to travel planning.”

Tripadvisor also recently announced that ex-Booking.com executive Pepijn Rijvers was joining the group as president of its Viator experiences brand.