Tourism and travel is splitting itself in two directions

Tourism and travel is splitting itself in two directions:

Direction 1: Back to the legacy, B2B2B2C, unproductive model

Direction 2: Towards the progressive, high experience, D2C, high-tech model

In both directions, travel spending is outpacing other discretionary categories as people crave the powerful moments travel brings.

Even the big players are catching on.

But instead of doing it themselves, a lot of them are just acquiring the experiential businesses.

At a global level, Hilton Hotel's recent investments in Graduate Hotels ("unapologetically, unique hospitality") is a prime example.

This tells us a few things:

- Big brands aren't the innovators – niche, curated tourism experiences win hearts -> win new customers -> win growth.

- Rising construction costs make acquisitions a smarter move.

- Differentiated brand identities matter more than ever to the smart traveller.

- Savvy travelers intentionally don't want to choose brands they know and that regularly let them down.

Travel is changing, and the progressive version will be led by experiences rather than the traditional interpretation of 5-star amenities.