The global travel industry is undergoing a seismic shift as consumers increasingly prioritize experiences over material possessions. This trend, known as experiential travel, is reshaping the tourism landscape. Backed by compelling data, a September 2024 study by McKinsey & Company and Skift Research projects the experiential travel market to surpass $1 trillion by 2025. Live events and festivals are emerging as one of the fastest-growing segments, offering unique opportunities for music and lifestyle festival producers.
The demand for immersive travel experiences is surging, with live events and festivals leading the charge. McKinsey reports double-digit growth in this segment, driven by a desire for connection, creativity, and cultural immersion. Festivals and concerts have transformed from simple entertainment into essential components of transformative travel.
Key data underscores the potential:
- Market Size for Live Events and Cultural Engagement: Projected at $1.1 trillion to $1.3 trillion by 2025.
- Tourist Spend on Events: Estimated at $430 billion to $530 billion.
- Paid and Structured Experiences: Valued at $80 billion to $100 billion, comprising about 20% of total tourist spend.
The $1 trillion milestone is more than a statistic—it’s a call to action. Companies like The Experience Resorts are stepping up to meet this demand. Based in Florida, The Experience Resorts is re-developing a nearly 300-acre beachfront resort purely for large music-centric events. The property features multiple stages, expansive pools, and more than 1000 rooms for starters.
“People no longer consider all of their content choices only from their couch at home. The ability for people to find niche programming, especially in person, has taken a once quiet cottage industry and brought it to the primetime of hospitality.” said Jak Severson of The Experience Resorts. “We are paving the way for an exciting new chapter in experiential travel.”
Many content distributors are getting into the action as well, with Hallmark Channel launching two Christmas-themed cruises this year, leaving 70,000 people on the waitlist for next year.
