Consumer thirst in the travel and leisure sector is changing. There has been a marked shift in consumer desire; from material gain to getting more life jaunts for your buck instead.

The term ‘experience economy’ is well and truly being embraced. Nowadays, small birthdays are treated like milestones, wedding days are holidays and rainy days are expected to become life changing ones. 


In terms of our travel habits, we’re entering the era of the ‘make-ation’. And here’s why every travel and leisure brand needs to be on board.

Moving on from the staycation

It’s been said a million times before – the credit crunch transformed the mindsets of the Western world. Aside from finance, no other industry felt this shift more than travel and leisure Globetrotters settled for vacations closer to home for the first time in decades, and new innovative brands emerged to assist the surge. Travelers began looking less for an exclusive escapist experience and more for an exceptional home-from-home. Airbnb, the world’s largest lodgings website, has grown exponentially, making the ‘staycation’ affordable, accessible and even desirable (today it boasts over one million listings across 190 countries, and sprouts new ‘travel family’ delights by the day).

But confidence is returning to the marketplace, and consumers are back with gusto with a whole new mindset. People seek brands who make the most of their time (and wallet) when abroad, and it is an experience ethos that must be embraced by travel companies who want to keep pace.

But how?

There's more to a make-ation than just new experiences

There are a number of things that brands can be conscious to offer in order to appeal to the new ‘make-ationer’.

People prefer paying for memorable moments over token souvenirs; to shout 'I've done it' over 'I've got it'. A good example of a brand capitalising on the ‘experience, don't own' mind-set is Indigenous Business Australia. The company, who champions 50 aboriginal tour guides, offers independent “travel experiences as diverse as the country itself", according to The Australian. Visitors are walked through traditional medicine plants where they can try fire-lighting and toolmaking arts before visiting the stunning Ngilgi Cave where they receive a mesmerising didgeridoo performance. Last year over three million visitors to Australia parted with money for a native experience like this one – adding an estimated AUS$6.4 billion to the economy. It's just one example of how travel brands are successfully selling experience and cultural immersion.

Opening the door to more experiences is one thing. But brands able to make these experiences more personalised are the ones succeeding in engaging audiences the most. Take GoPro for example, this adventure camera company lets users film their extreme-action travel experiences in the first person, giving viewers the same rush without leaving their desk. This dual-experience excitement means thousands of videos are published to the web every day. GoPro has stumbled upon a technique that drives reams of free publicity, and, as a result, has become YouTube's most watched brand.

Personalised experiences, then, can help brands connect with the new make-ationer. The airlines sector is one that’s able to capitalize on this without needing a hard sell (after all, everyone needs airlines to reach an un-explored destination). Icelandair has launched a truly successful consumer engagement strategy, bringing people back to the brand time and time again. Its #MyStopover project gives transatlantic passengers the chance to increase their stay in Iceland for up to seven nights at no extra charge. The catch? Simple. Passengers are asked to share meaningful stories about how they made the most of their extra time. To incentivise further, one lucky story-sharer wins another holiday to this great country.

Russian carrier Transaero, recently underwent a brand overhaul and are apt a touch of ‘make-action’ to their flights; with five classes of cabin including Imperial Class, where customers get chauffeur-driven transfers, chic surroundings and gourmet food from Moscow’s top restaurant.

Virgin has a rock’n’roll attitude is reflected at every consumer touchpoint. Unusual for such a large and established brand, this makes the brand a popular choice for make-ationers as an exciting way to start their travels – its award winning innovative Upper Class and Premium Economy cabins are great examples of this. The brand’s foray into space tourism, with Virgin Galatic is the pinnacle of experience tourism.

This direct interaction breeds consumer loyalty ­– the most important thing to brands. These companies turn a purchase into an experiential purchase, without charging a penny extra. And because spending time and money on experiences makes us happier (according to psychology professor Thomas Gilovich for Psychological Journal), inevitably, people feel happier spending again with such a generous, experience-driven businesses.

One questions remains. How are the more traditional travel companies manoeuvring to meet the make-ationer demand?

Winners and losers in the make-ation scramble

Travel traditionalists – the likes of Thomson Holidays, Thomas Cook and First Choice, among others – could be in danger of treading water in this new wave. And it’s because their brands aren’t yet built to attract the savvy make-ationer.

These are companies that were established way before the World Wide Web made it possible to for people to browse deals and destinations; when consumers has to physically visit the high street to make a booking. Although these big names moved to online successfully, their brand image remains conventional.

Make-ationers are attracted to atypical, courageous and agile businesses. Take STA Travel for example. Their brand exudes adventure, which it builds upon continuously. This year, the company joins forces with Brand USA to offer an experiential bus tour that utilises Oculus Rift virtual technology. Last year, they took the brave step to exclude excursions linked with animal cruelty, including USA’s number one money-maker, SeaWorld. It’s no wonder they boast 2.5 million+ customers annually. Even STA Travel is inspired by what STA Travel does.

Traditional travel brands must increase their consumer engagement and make their existence more meaningful and conversation-worthy for consumers. Sadly, intense competition from the disruptive Airbnbs of this world has led to decreased sales and tired-looking images, helped least of all by Thomas Cook’s recent high profile court case. It’s no wonder people feel like they’re engaging with these travel giants’ for the wrong reasons.

Travel without limits

The implications of the make-ation trend for brands will be enormous in future years, which is why travel companies must become transparent, immersive and limitless in the experiences they offer. Our work with Qatar Hamad International Airport taught us that every touchpoint is an opportunity to experience something special; airports are no longer just stopping areas, but “gateways to the world”.

Getting passengers to feel connected to something bigger than where they’ve been is a key mind-set to tap into. Travel companies must prioritise the emotion that they want to evoke in the consumer market – for the make-ationers, empowering them to do more is also at the heart of it. Driven, once again, by the millennials, who are travelling further and more frequently than ever seen before, wanting more technology-enhanced experiences than ever before. It is predicted that millennials will reach their peak travel appetite in 2020. Brands embracing the era of the make-ation will want to be front of mind when that time comes.

 

By Mike Curtis, Co-Founder and CEO of StartJG. 

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