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Too Much Loyalty, Too Little Growth?

For multi-day tour operators and travel companies, high repeat traveler rates are seen as marks of success. Having a consistent client base traveling with you year after year is something every travel company dreams of. But what happens when that group of loyal guests begins to shrink?  

One travel company recently expressed their concerns with PEAK 15. Their current base of loyal travelers were “aging out” and not enough emphasis was being placed on attracting new guests. This begs the question, what is an optimal repeat traveler rate and how do you balance nurturing loyalty while also expanding your client base? 

Loyalty Benchmarks 

According to Exploding Topics’ most recent article on customer retention rates, the average retention rate for the travel industry is around 55%. However, the travel industry measured covers a broad spectrum because it includes the hospitality industry as well. It’s not necessarily reflective of specific industries like multi-day travel.

In such a specialized space, with distinct destinations and travel offerings, can we even apply a single “repeat traveler rate” as a benchmark? 

The challenge also lies in how travel companies define “repeat travelers.” Not all repeat guests are the same. A traveler who returns annually demonstrates a different kind of loyalty than one who books again after a five-year gap. 

That’s why it’s important to establish clear and quantifiable criteria to measure your repeat traveler rate. For example, at PEAK 15, we define the “repeat traveler rate” as the percentage of travelers in a given period of time who have also traveled with the same company any time previous to that period. Ultimately, the “right” repeat traveler rate depends on your business model.  

We know loyal guests provide predictable revenue and reinforce your brand identity. But there are also some risks, including stagnation and aging demographics, which can lead to eventual decline. 

The Demographic Shift in Travelers 

In PGAV’s 2025 Voice of the Visitor, a national benchmarking study conducted among U.S. leisure-attraction visitors, for the first time, the 18-34 age group surpassed the 55+ age group in travel. “As Baby Boomers reduce leisure travel with age, millennials and Gen Z are expected to dominate the travel market. Projections suggest that by 2030, these younger generations will account for over half of U.S. leisure trips. These groups prioritize unique, adventurous, and eco-conscious travel experiences.” 

The Adventure Travel Trade Association also echoed this pattern in their most recent research. In the  2025 Adventure Travel Trends & Insights: State of the Adventure Travel Industry, “most (66%) of 2024 adventure travelers were between the ages of 29 and 60,” and those that traveled to countries in Central America, Caribbean, the Pacific, and Africa, trended towards an overall younger age compared to previous years.   

New Expectations 

It’s not just who is traveling that’s changing, it’s how. Younger generations have different expectations when booking travel. They are looking for fast, easy online booking with real time availability. Mobile friendly platforms, personalized content, unique itineraries, and honest reviews are also integral to the experience of this demographic. 

To meet these new expectations and capture the bookings of these travelers, your systems, processes, and marketing must evolve. 

Identify and Engage Guests with PEAK 15  

Do you know who your ideal client is? Reporting through PEAK 15 allows you to segment your current travelers by things like age, type of trips booked, and spending habits.  

Maybe a certain age group consistently books one itinerary. Why not promote it more heavily to similar travelers or add related trips to your catalog?  

Are your repeat travelers all from the same demographic? Do you know which guests are more likely to spend on add-ons and upgrades? Organizing this data highlights trends that will then fuel your future marketing campaigns.  

Marketing Integrations 

Once you know your ideal traveler, it’s time to reach them. PEAK 15 supports marketing integrations with Marketo, Hubspot, Mailchimp, and Constant Contact which will help you capture new leads and nurture them into lifelong clients.  

Customer Spotlight: Senior Discovery Tours  

Senior Discovery Tours is leading the way with their loyalty programs by including both a referral (growth) and a rewards (loyalty) aspect to them. Current offerings include:  

  • Discovery Rewards: A program based on the number of tours guests complete.  
  • BlueSky Referrals: A referral system where referrers earn $300 when they refer someone who completes a tour. The referral also receives a gift. 
  • Insider Club Benefits: A program where clubs and associations earn a 4% commission for every member who books, with no minimum bookings required. 

This is a great example of how balance can be achieved between incentivizing both your loyal and new travelers. Senior Discovery Tours leverages PEAK 15 to monitor their loyalty programs, generating reports on which travelers are taking advantage of their rewards.  

Balance is Key to Loyalty & Growth  

The loyalty of your legacy travelers helped build your brand, and PEAK 15 helps you understand who’s next. With the tools to understand your audience and automate your processes, you can reach new travelers while still nurturing your loyal ones.

Written by:
Bella Widmann
Published on:
July 23, 2025

Categories: Best Practices, Industry NewsTags: growth, loyalty, multi-day tour operator, referral programs, retention, travel company

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