Bangkok: Tuesday 26 November 2024

In the post-pandemic era, travellers increasingly seek meaningful experiences rather than just accommodations. Experiential travel, characterized by engaging and personalized interactions, has emerged as a game-changer for the hospitality industry. Hotels that adapt by offering localized and niche experiences not only capture the interest of diverse markets but also significantly boost revenue and guest loyalty. This article explores how experiential travel reshapes hotel strategies and provides actionable insights for hotel commercial, marketing, and revenue management professionals.

Understanding Experiential Travel

Experiential travel focuses on connecting guests with local culture, heritage, and unique activities. Unlike traditional travel, which emphasizes sightseeing, this approach caters to guests seeking immersion and authentic connections. A study by Booking.com revealed that 73% of global travellers prefer experiences over material possessions, while a Skift report emphasized that 67% of millennials spend more on experiences compared to other age groups. 

Hotels are perfectly positioned to capitalize on this trend by curating tailored experiences that align with their brand ethos and target audience.

 

Revenue Opportunities Through Experiential Travel

Premium Pricing for Unique Offerings

Guests are willing to pay more for memorable experiences. For instance, a study by Expedia highlighted that travellers are willing to spend up to 30% more for unique, curated experiences**. Luxury hotels offering culinary classes, art workshops, or cultural tours can charge premium rates, leading to higher RevPAR (Revenue Per Available Room).

 

Upselling and Cross-Selling Opportunities

Partnerships with local businesses can extend a hotel's value proposition. Upselling packages that include guided tours, exclusive dining experiences, or wellness retreats not only generate ancillary revenue but also improve the perceived value of the stay.

 

Extended Length of Stay (LOS) 

Experiential travel often encourages guests to stay longer. For example, a wellness-focused guest might book an extended weekend for a yoga retreat, while a family might extend their stay for a curated cultural immersion program.

 

Building Guest Loyalty Through Personalization

Memorable Experiences Foster Repeat Stays

Travellers who feel a strong emotional connection to their trip are more likely to return. According to Deloitte, 25% of guests prefer revisiting hotels that offer personalized experiences, reinforcing the link between unique offerings and loyalty.

 

Word-of-Mouth and Social Media Advocacy

Experiential travel creates shareable moments, encouraging guests to promote their experiences organically. A study by Social Media Today revealed that 76% of travellers post on social platforms during their trips, amplifying the hotel’s reach.

 

Key Strategies for Hotels to Enhance Experiential Travel

Collaborations with Local Businesses

Hotels can forge partnerships with artisans, chefs, tour operators, and wellness experts to provide exclusive offerings.

For example: 

-The Ritz-Carlton Kyoto partners with local craftsmen to offer traditional tea ceremonies and calligraphy classes. 

-Six Senses Resorts work with local communities to deliver sustainable tourism programs, boosting both guest satisfaction and local economies.

 

Leveraging Technology for Personalization

Modern tools, such as CRM systems and AI-driven apps, help hotels understand guest preferences. By analysing past behaviour, hotels can suggest activities aligned with individual interests, such as hiking trails, LGBTQ-friendly events, or wellness retreats.

 

Developing Niche Market Packages

Niche markets, like LGBTQ-friendly travel and wellness tourism, present significant growth opportunities: 

- LGBTQ-Friendly Travel: According to Community Marketing & Insights, LGBTQ travellers spend an estimated $218 billion annually on travel globally. Hotels can tap into this market by offering inclusive packages, such as Pride-themed events or partnerships with local LGBTQ-friendly businesses.

 

- Wellness Tourism: The Global Wellness Institute reported that wellness tourism grew by 6.5% annually pre-pandemic, reaching a market value of $639 billion in 2023. Hotels can attract wellness travellers by offering yoga sessions, spa treatments, and detox meal plans.

 

Case Studies of Success

Staybridge Suites, Thailand: A Local Immersion

Staybridge Suites engages guests with guided tours of Bangkok’s vibrant neighbourhoods, offering culinary adventures and art walks. This initiative increased their average guest satisfaction score by 15% and extended LOS by 20%.

Hyatt Ziva Cancun: Wellness Tourism at Its Best

Hyatt Ziva introduced wellness-focused packages, including meditation workshops and eco-friendly excursions. The result? A 30% increase in package bookings and a 12% spike in repeat guest bookings.

 

Revenue Management's Role in Experiential Travel

Revenue managers play a pivotal role in monetizing experiential travel by aligning pricing strategies with demand and market trends: 

 

1. Dynamic Pricing for Experiences: Adjust pricing for exclusive activities during peak seasons. For example, a cooking class could cost more during a food festival. 

2. Bundling Experiences: Offer discounted packages that combine stays with curated activities, increasing total spend per booking. 

3. Tracking KPIs: Monitor metrics such as RevPAG (Revenue Per Available Guest) and TRevPAR (Total Revenue Per Available Room) to evaluate the success of experiential offerings.

 

Marketing Experiential Travel 

1. Storytelling Campaigns 

Use storytelling to highlight the uniqueness of experiences. Share guest testimonials, behind-the-scenes videos, and success stories. 

2. Targeted Digital Campaigns

Leverage data-driven marketing to target niche audiences. For instance: 

- Use Google Ads to reach wellness travellers searching for “yoga retreats in Asia.” 

- Advertise LGBTQ-friendly packages on platforms like Instagram and TikTok. 

3. Partnership with OTAs

List experiential offerings on OTAs like Expedia and Airbnb Experiences to reach a broader audience.

 

Future Trends in Experiential Travel

1. AI and Virtual Reality: Virtual tours can showcase local experiences, enticing guests to book. 

2. Sustainable Travel: Increasing demand for eco-friendly options encourages hotels to adopt green practices. 

3. Hyper-Personalization: As technology evolves, personalized itineraries will become standard.

 

Conclusion

Experiential travel is no longer a niche; it’s the future of hospitality. By creating unique local experiences, partnering with nearby businesses, and catering to niche markets, hotels can increase revenue while building lasting guest loyalty. For commercial, marketing, and revenue management professionals, the opportunity lies in seamlessly integrating these strategies into their core operations, ensuring sustainable growth and competitive differentiation.

Author: Nazmus Shaine Sakib

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