Walk through any airport, scroll through social media, or listen to dinner conversations, and one thing becomes clear. People are more excited to share what they’ve experienced than what they’ve purchased.
Travelers today are shifting their spending from material goods to experiences that create meaningful moments. According to Bain & Company, global luxury spending remained steady at $1.5 trillion in 2024, while travel, entertainment, and dining sectors experienced significant growth. In the U.S., experience-based spending rose by 3 percent compared to pre-pandemic levels (GetYourGuide). In the UK, entertainment spending increased by 5.8 percent, while total card spending grew just 1.6 percent (Barclays).
In 2024, U.S. consumer spending reached $16.1 trillion, with a growing share directed toward travel and entertainment (Statista). Today’s consumers are not just booking trips—they are actively investing in meaning, memory, and connection. For travel brands, experience must be the foundation of strategy rather than a byproduct of it.
The Experience Economy has Evolved
Economists have long predicted that people would begin to value experiences more than possessions. That shift is no longer theoretical—it’s here. Today’s behaviors reflect new values, increased access to technology, and post-pandemic priorities that have reshaped how people live and spend.
Millennials and Gen Z are leading this transformation. They seek travel that is immersive, intentional, and socially connected. A trip is no longer simply an escape. It has become an expression of identity, a tool for emotional well-being, and a way to share stories with the world.
This mindset raises the bar for brands. A beautiful setting or courteous service is not enough. Travelers now expect consistency, purpose, and emotional clarity in every interaction. Brands must approach experience design with intention at every stage of the guest journey.
Five Principles for Experience-First Travel Brands
Personalization Begins with Design, not Just Data: Guests want more than recognition. They want experiences that feel relevant and thoughtfully tailored. Personalization should guide every part of the journey, from pre-arrival planning to post-departure follow-up. AI tools can offer smart recommendations, but true loyalty is built through human-centered moments. The brands that anticipate needs and offer meaningful choices foster trust and emotional connection.
Luxury is now Defined by Emotional Impact: Traditional luxury still matters. Privacy, status, and high-end amenities remain important, but travelers now expect more. They seek cultural connection, immersive storytelling, and opportunities for personal growth and transformation. At its peak, Disney’s Galactic Starcruiser offered an experience that blended narrative with hospitality. Airbnb Experiences connects guests with local traditions. These moments leave lasting impressions because they resonate on an emotional level.
Storytelling Starts in the Physical Space: Marketing campaigns may attract attention, but the physical environment delivers the most powerful story. Elements like sound, scent, lighting, and layout influence how guests feel and what they remember. A rooftop that hosts yoga in the morning and live music at night conveys a sense of thoughtful programming. Every physical detail has the potential to support or undermine the brand narrative. Spaces should be treated as integral parts of the story, not as static backdrops.
Values Must be Embedded, not Just Marketed: Travelers are paying close attention to brand values. Ethical sourcing, labor practices, and community impact all influence purchasing decisions. These elements cannot be surface-level messages. They must be built into operations. Intrepid Travel, for example, operates through a model rooted in low-impact, community-based tourism. Their values inform every aspect of the business, from pricing to partnerships. Brands that fail to walk the talk risk losing credibility.
Technology Should Support, not Replace, the Experience: Digital tools can enhance accessibility and reduce friction, but they should never come at the cost of human connection. Hilton’s digital key system offers convenience, but it matters most when paired with warm, responsive service elsewhere. AR and VR can help travelers imagine a destination, but without cultural depth or relevance, they remain surface-level novelties. Technology should serve the brand’s purpose and enrich the experience, not distract from it.
Redefining Leadership in the Experience Era
The experience economy now defines how travelers make decisions and talk about brands. Forward-thinking companies are reimagining their operations to reflect this new reality. They are focusing on experience design, aligning their values across every touchpoint, and shifting from being service providers to becoming memory-makers.
CMOs, brand strategists, and hospitality executives must reflect deeply on how their brand is felt and remembered. The most important questions are not about exposure or scale—they are about emotional clarity. What moments are we creating for our guests? Where are we unintentionally causing confusion or dissatisfaction? What stories are people telling once they leave? The brands that embrace these questions and act on them are beginning to set themselves apart. Others may find themselves replaced by competitors who move more quickly, think more intentionally, and design more meaningfully.
