The response by authorities to over-tourism and environmental concerns by either the introduction of fees and limiting tourist numbers are posing a challenge to the experiences industry, said Arival CEO and co-founder Douglas Quinby at the opening of Arival in Berlin this week.
“In some popular locations, there are consequentially fewer tourists, sometimes with less money to spend on experiences because of pricey local authority tourism fees,” he said, emphasising the need for adaptive strategies.
He also stressed the diminishing space of offline bookings and the need for industry players to embrace digital connectivity. “Offline bookings are steadily decreasing,” said Quinby. “However, compared with other parallel industries such as hotels, there are still a lot of bookings taking place offline. There’s still a massive part of our industry that is offline, unconnected.”
Delving into the complexities of consumer decision-making regarding experiences, he underscored the diverse avenues through which individuals discover and select activities. He cited the growing influence of platforms like TikTok in driving bookings. “TikTok was number 5 as a booking platform in 2023. In 2024, it’s number 2 after Google.”
And of course, AI got a mention with Quinby expressing optimism about the potential of AI-driven innovations in the industry while emphasising the value of human connection in delivering immersive experiences.
“We’re seeing all sorts of really provocative applications for our industry. However, I’m extremely optimistic, because the one thing that sets our industry apart is something that can’t be replaced by technology. As it’s about connection with people, a place, a culture, everything you can touch and taste.”
Other key takeaways included:
Challenge the conventional
Claus Raasted, Director of The College of Extraordinary Experiences, urged industry stakeholders to embrace innovation and challenge conventional norms. Raasted emphasised the significance of fostering an environment conducive to change, citing examples of transformative shifts observed during the pandemic.
“Change only happens when we’re desperate,” said Raasted. “Where it doesn’t happen is when you’re in the middle. When you’re “too busy” or “don’t have enough time” [to act on an idea, or try something completely new]. We don’t change as long as we’re in the middle.”
Make content that is watchable, sharable and savable
Love and London’s Jessica Dante shared insights into the power of content strategy in driving engagement and growth. By tailoring content to address consumer interests, queries, and concerns, Dante highlighted the importance of authenticity and relevance in building brand resonance.
Dante said, “(Instagram) Reels were once an after-thought to us… now short-form videos help us reach 4.5 million people a month. We stopped producing reels about us, and switched to content for our customers.”
Dante reiterated that brands should make content that is watchable, shareable and savable while creating a content strategy around three questions:
- What are your target market’s interests? This can be related to what you offer, but not exactly what you offer. “Our market loves hidden gems and things that are historic, so we did a video story about the oldest umbrella shop in London. It has 600k views on Instagram and 250k on TikTok.”
- What questions are they asking? Dante says this should be something they want help with, and that brands should answer that question for them – give them something that helps them out. “We are a tour company, but the top question we get from people is actually how to get from London Heathrow Airport to the city centre. So, we did a video to show them all the potential ways – it has 1.2 million views on Instragram and 1.2 million on TikTok.”
- What worries or insecurities do they have? “Lots of our customers are anxious or nervous about going abroad, e.g. when going to France, people are worried about the language barrier. Others are worried about getting robbed in London. So we made a two-minute video about a common scam in London to be aware of and how to avoid it.”
Refining AI’s role in enhancing user experience
Emmanuel Marot, Google’s Director of Product Management, provided insights into the role of AI in enhancing user experience within the travel domain. Marot underscored ongoing efforts to refine AI capabilities in understanding user preferences and delivering personalised recommendations.
Marot also admitted there was also still work to be done on the topic of confabulation – when the AI tool (Gemini) imagines something and then makes up its answer. “That’s a biproduct of the tool. It hears something you’re saying and then tries to interpret it or imagine an answer. The more we improve the data, the more we can improve this.
“Content needs to be expressed to users in a way that is relatable, for example, you won’t say ‘let’s go to a 4.7-star restaurant’ – you’d say something much more expressive.”
Sustainability tips: Start small, identify impact, collaborate
A panel discussion on sustainability featured industry leaders outlining their commitments to environmental stewardship. From measuring carbon emissions to promoting sustainable practices, panelists emphasised the importance of aligning business operations with environmental and social objectives.
For example, Tootbus’ Arnaud Masson said, “We measure two main things; we measure our carbon emissions, and the importance of the topic to our customers. We then promote sustainable activities on our tours. For example, we encourage people to do walking tours. We also promote the cities we operate in, to give something back to the communities that give to us.”
Panelists also offered practical advice on driving sustainable change within the industry, stressing the importance of starting small, identifying impactful initiatives, and fostering transparency and collaboration.
Arival team in Berlin
