Experiential gifts
Encyclopedia
Experiential gifts also known as gift experiences and experience gifts, pioneered in the UK
in the 1990s, now represent one of the faster growing segments of the $253 billion a year gift
industry. As opposed to material gifts, they allow the recipient to have an experience, such as skydiving
, kayaking
, race car driving or touring a vineyard
.
Experiential gifts tend to fall into the following groups:
who reportedly came up with the idea of gift experiences after looking for a creative way to give her father tickets to an England cricket team match. The success of Red Letter Days led to Elnaugh winning the Ernst & Young
Entrepreneur of the Year Award in 2002 and a role as a Dragon on BBCTV's Dragon's Den. Red Letter Days was purchased in August 2005 by Theo Paphitis
and Peter Jones
, who are also Dragons on the BBCTV show.
Experience gift companies launched across Europe following the success of Red Letter Days and the largest Australian experience gift company, Red Balloon, was founded in 2001. By 2010 mostly all EU countries had an established experience gift provider from the larger states such as Germany through to the small countries such as Cyprus, served by ExperienceGiftsOnline which is translated in Russian, Greek and English.
While popular in both Europe and Australia, the idea of experience gifts did not hit the mainstream in the US until 2004-2005. Between 2004 and 2005, the three largest US based experience gift companies – Cloud 9 Living (2005), Xperience Days (2004), and Excitations (2004) were founded. All three continue to operate today, offering experiences across the nation.
In Asia, the experience gift industry was pioneered in 2010 by Hong Kong based company, Spoilt.
and an emerging category in the U.S.A.
A survey conducted in November 2005 by American Express found that experiential gift giving was on the rise (30% of those surveyed planned on giving experiential gifts that year versus 23% the prior year). The survey also found that experiential gifts were particularly popular among consumers aged 18–44. A survey http://reports.mintel.com/sinatra/reports/search_results/show&&type=RCItem&page=0&noaccess_page=0/display/id=219215 published in 2007 by Mintel estimated the UK gift experience market to be worth £98 million.
According to the same American Express survey, the growth of interest in buying experience gifts in the UK is:
Year 2001 : 18%
Year 2002 : 20%
Year 2003 : 20%
Year 2004 : 22%
Year 2005 : 23%
Year 2006 : 30%
Year 2007 : 34%
Year 2008 : 35,5%
Experiential gifts also capitalize on consumers' growing comfort with purchasing gifts online. According to a November 2006 survey conducted by TNS on behalf of The Conference Board
, 35 percent of all consumers planned to buy holiday gifts on the Internet in 2006.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
in the 1990s, now represent one of the faster growing segments of the $253 billion a year gift
Gift
A gift or a present is the transfer of something without the expectation of receiving something in return. Although gift-giving might involve an expectation of reciprocity, a gift is meant to be free. In many human societies, the act of mutually exchanging money, goods, etc. may contribute to...
industry. As opposed to material gifts, they allow the recipient to have an experience, such as skydiving
Parachuting
Parachuting, also known as skydiving, is the action of exiting an aircraft and returning to earth with the aid of a parachute. It may or may not involve a certain amount of free-fall, a time during which the parachute has not been deployed and the body gradually accelerates to terminal...
, kayaking
Kayaking
Kayaking is the use of a kayak for moving across water. Kayaking and canoeing are also known as paddling. Kayaking is distinguished from canoeing by the sitting position of the paddler and the number of blades on the paddle...
, race car driving or touring a vineyard
Vineyard
A vineyard is a plantation of grape-bearing vines, grown mainly for winemaking, but also raisins, table grapes and non-alcoholic grape juice...
.
Experiential gifts tend to fall into the following groups:
- Adventure - skydivingParachutingParachuting, also known as skydiving, is the action of exiting an aircraft and returning to earth with the aid of a parachute. It may or may not involve a certain amount of free-fall, a time during which the parachute has not been deployed and the body gradually accelerates to terminal...
, kayakingKayakingKayaking is the use of a kayak for moving across water. Kayaking and canoeing are also known as paddling. Kayaking is distinguished from canoeing by the sitting position of the paddler and the number of blades on the paddle...
, whitewater raftingRaftingRafting or white water rafting is a challenging recreational outdoor activity using an inflatable raft to navigate a river or other bodies of water. This is usually done on white water or different degrees of rough water, in order to thrill and excite the raft passengers. The development of this...
, hang glidingHang glidingHang gliding is an air sport in which a pilot flies a light and unmotorized foot-launchable aircraft called a hang glider .... - Driving - rallyingRallyingRallying, also known as rally racing, is a form of auto racing that takes place on public or private roads with modified production or specially built road-legal cars...
, NASCARNASCARThe National Association for Stock Car Auto Racing is a family-owned and -operated business venture that sanctions and governs multiple auto racing sports events. It was founded by Bill France Sr. in 1947–48. As of 2009, the CEO for the company is Brian France, grandson of the late Bill France Sr...
, V8 supercars - GourmetGourmetGourmet is a cultural ideal associated with the culinary arts of fine food and drink, or haute cuisine, which is characterised by elaborate preparations and presentations of large meals of small, often quite rich courses...
- wine tastingWine tastingWine tasting is the sensory examination and evaluation of wine. While the practice of wine tasting is as ancient as its production, a more formalized methodology has slowly become established from the 14th century onwards...
, cigar tastingCigarA cigar is a tightly-rolled bundle of dried and fermented tobacco that is ignited so that its smoke may be drawn into the mouth. Cigar tobacco is grown in significant quantities in Brazil, Cameroon, Cuba, the Dominican Republic, Honduras, Indonesia, Mexico, Nicaragua, Philippines, and the Eastern...
, gourmet cookingGourmetGourmet is a cultural ideal associated with the culinary arts of fine food and drink, or haute cuisine, which is characterised by elaborate preparations and presentations of large meals of small, often quite rich courses...
lessons - Environmentally friendlyEnvironmentally friendlyEnvironmentally friendly are terms used to refer to goods and services, laws, guidelines and policies claimed to inflict minimal or no harm on the environment....
- SegwaySegway PTThe Segway PT is a two-wheeled, self-balancing transportation machine invented by Dean Kamen. It is produced by Segway Inc. of New Hampshire, USA. The name "Segway" is a homophone of "segue" while "PT" denotes personal transporter....
city tours, whale watchingWhale watchingWhale watching is the practice of observing whales and other cetaceans in their natural habitat. Whales are watched most commonly for recreation but the activity can also serve scientific or educational purposes. A 2009 study, prepared for IFAW, estimated that 13 million people went whale watching... - RejuvenateRejuvenationRejuvenation may refer to:*Rejuvenation , reversing the aging process*Rejuvenation , when the base level that a river is flowing down to is lowered*Rejuvenation , 1974*Rejuvenation , 2009...
- spaSpaThe term spa is associated with water treatment which is also known as balneotherapy. Spa towns or spa resorts typically offer various health treatments. The belief in the curative powers of mineral waters goes back to prehistoric times. Such practices have been popular worldwide, but are...
treatments, pilatesPilatesPilates is a physical fitness system developed in the early 20th century by Joseph Pilates in Germany, the UK and the USA. As of 2005, there were 11 million people practicing the discipline regularly and 14,000 instructors in the United States....
, stone massageStone massageA stone massage is a massage that uses smooth, flat, and heated rocks placed at key points on the body.-Technique:Generally the rocks used in a stone massage are basalt, which has high heat retention qualities . Stones are placed in water and heated to approximately before placement on the body...
s
History
The pioneer of the industry was the United Kingdom-based Red Letter Days, which rose to meteoric heights before crashing down to virtual bankruptcy. Red Letter Days was founded by British entrepreneur Rachel ElnaughRachel Elnaugh
Rachel Elnaugh is a British entrepreneur, who came to prominence as an investor on the first two seasons of BBC Two's TV show Dragons' Den, in which hers was the sole female perspective alongside four male entrepreneurs known as the Dragons.-Early life:Her family lived above her father's...
who reportedly came up with the idea of gift experiences after looking for a creative way to give her father tickets to an England cricket team match. The success of Red Letter Days led to Elnaugh winning the Ernst & Young
Ernst & Young
Ernst & Young is one of the largest professional services networks in the world and one of the "Big Four" accountancy firms, along with Deloitte, KPMG and PricewaterhouseCoopers ....
Entrepreneur of the Year Award in 2002 and a role as a Dragon on BBCTV's Dragon's Den. Red Letter Days was purchased in August 2005 by Theo Paphitis
Theo Paphitis
Theodorus "Theo" Paphitis is a retail magnate and British entrepreneur of Greek Cypriot origin. He made the majority of his fortune in the retail sector, and is best known to the general public for his appearances on the BBC business programme Dragons' Den and as former chairman of Millwall...
and Peter Jones
Peter Jones (entrepreneur)
Peter Jones, CBE is a British entrepreneur and businessman with interests in mobile phones, television, media, leisure, and property. He became a television celebrity through his appearances on the BBC Two show Dragons' Den and on his American television show American Inventor...
, who are also Dragons on the BBCTV show.
Experience gift companies launched across Europe following the success of Red Letter Days and the largest Australian experience gift company, Red Balloon, was founded in 2001. By 2010 mostly all EU countries had an established experience gift provider from the larger states such as Germany through to the small countries such as Cyprus, served by ExperienceGiftsOnline which is translated in Russian, Greek and English.
While popular in both Europe and Australia, the idea of experience gifts did not hit the mainstream in the US until 2004-2005. Between 2004 and 2005, the three largest US based experience gift companies – Cloud 9 Living (2005), Xperience Days (2004), and Excitations (2004) were founded. All three continue to operate today, offering experiences across the nation.
In Asia, the experience gift industry was pioneered in 2010 by Hong Kong based company, Spoilt.
Experience Gift Consumers
People who buy such gifts for themselves have been dubbed transumers by the consumer trends firm Trendwatching.com, which defines the term as "consumers driven by experiences instead of the ‘fixed’, by entertainment, by discovery, by fighting boredom, who increasingly live a transient lifestyle, freeing themselves from the hassles of permanent ownership and possessions. The fixed is replaced by an obsession with the here and now, an ever-shorter satisfaction span, and a lust to collect as many experiences and stories as possible."Market surveys
As of 2009, the experiential gift market is an established, highly competitive multi-million dollar market in the United Kingdom and in AustraliaAustralia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
and an emerging category in the U.S.A.
A survey conducted in November 2005 by American Express found that experiential gift giving was on the rise (30% of those surveyed planned on giving experiential gifts that year versus 23% the prior year). The survey also found that experiential gifts were particularly popular among consumers aged 18–44. A survey http://reports.mintel.com/sinatra/reports/search_results/show&&type=RCItem&page=0&noaccess_page=0/display/id=219215 published in 2007 by Mintel estimated the UK gift experience market to be worth £98 million.
According to the same American Express survey, the growth of interest in buying experience gifts in the UK is:
Year 2001 : 18%
Year 2002 : 20%
Year 2003 : 20%
Year 2004 : 22%
Year 2005 : 23%
Year 2006 : 30%
Year 2007 : 34%
Year 2008 : 35,5%
Experiential gifts also capitalize on consumers' growing comfort with purchasing gifts online. According to a November 2006 survey conducted by TNS on behalf of The Conference Board
The Conference Board
The Conference Board, Inc. is a non-profit, non-partisan business membership and research group. It has approximately 12,000 executives in its network, from 1200 corporations in 60 countries. It holds conferences, convenes executives, conducts economic and business management research, and is seen...
, 35 percent of all consumers planned to buy holiday gifts on the Internet in 2006.