Travelers in 2024 will approach their trips with caution when it comes to spending, but there is potential for growth in the private tour industry, according to Douglas Quinby, co-founder and CEO of Arival. Quinby shared his insights during the recent Arival 360 Conference in Orlando, where he presented findings from a survey conducted by Arival.
The survey, titled “The 2024 Experiences Traveler,” gathered data from 1,000 U.S. citizens who had traveled at least 100 miles from home in the past 12 months and had participated in qualifying tours, activities, attractions, or experiences that included an overnight stay.
Quinby noted that while travelers are indeed returning, their travel habits have changed since before the pandemic. They are taking fewer trips overall, but the trips they do take are longer and more meaningful. Additionally, they are spending more money per trip and engaging in a greater number of activities.
One notable finding from the survey was a significant increase in the number of tours taken per trip. In 2023, the average traveler took 4.7 tours per trip, compared to 2.7 tours in 2019. Quinby attributed this change to a desire among travelers to make their visits to major landmarks and attractions more special and personalized. Instead of simply visiting these sites, travelers are now combining them with various types of tours and experiences.
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The survey also revealed a decrease in the number of trips people plan to take in 2024. However, Quinby reassured that this decline is not necessarily cause for concern. He explained that it reflects the current sentiment among travelers, who are being more cautious due to factors like the cost of living, the economic outlook, and high consumer debt. The exception to this trend is the affluent segment, defined as those with household incomes exceeding $150,000 per year, who are just as enthusiastic about travel as they were before the pandemic.
Regarding the popularity of private tours, the survey found that 47 percent of respondents booked private tours. This preference was particularly strong among affluent travelers. Quinby emphasized the potential for tour operators to cater to this demand by adding private tour options for the affluent segment. Providing exclusive and unique experiences can be a major selling point for these travelers in 2024.
In terms of research, booking, and reviewing tours, the survey highlighted changing trends. Travelers are utilizing a variety of platforms to gather information before making their decisions. Unlike airlines and hotels with well-established brands, tour companies must actively engage with potential customers across multiple platforms to make an impact. Additionally, personalized communication remains important, as travelers want the option to chat with someone before finalizing their bookings. Furthermore, the sharing and reviewing of travel experiences on various platforms is expected to increase in 2024.
In conclusion, while travelers are expected to approach their trips with caution in 2024, there are opportunities for growth in the private tour industry. Travelers are seeking more meaningful and personalized experiences, leading to an increase in the number of tours per trip. Affluent travelers, in particular, are eager to resume their travel plans. To effectively capture the attention of these travelers, tour operators must engage with them across various platforms and consider offering private tour options. As travelers increasingly rely on digital channels for research and reviews, tour companies should adapt their strategies accordingly.
Overall, the travel landscape in 2024 will be shaped by the changing preferences and spending habits of travelers, as well as advancements in digital technology. By understanding and responding to these trends, the industry can adapt and thrive in the years to come.
