Destination Unknown – An Analysis of the Surprise Travel Market

THR's opinion

Destination Unknown – An Analysis of the Surprise Travel Market

Destination marketing is a key strategic activity when it comes to the positioning of a tourist destination, reinforcing not just awareness among potential visitors, but also augmenting destination brand love or ‘likeability’ in order to increase visitor numbers and destination value.

But what happens when visitor demand is less focused on a particular destination than on the act of traveling itself? What if the final location of the trip is an unknown but its potential to delight becomes the key selling point of the experience?

In recent years we have observed the emergence of new business models derived from this adjustment in consumer behaviour. New categories of tourism products, commonly referred to as “surprise trips” or “surprise boxes” commercialize journeys to destinations while keeping their exact locations hidden until approximately 48 hours prior to departure.

These packaged experiences – often given as gifts - have been pioneered by organizations such as Smartbox, Wonderbox and Waynabox. The digitization of the travel process has favoured more actors joining this phenomenon, contributing to an ease of commercialization on the supply side and the ability to book an entire travel experience in a single click on the demand side.

In addition, the model benefits from economies of scale and low occupancies both in hotels and airlines to offer very competitive prices and, consequently, strong commercial margins. As a result, more companies are opting to explore this business model, not only for the travel market, but also within the experiential and gastronomic industries.

Are surprise trips a significant development in destination marketing? Is it a viable business model in the long term? The THR team has analysed this phenomenon and its implications for the sector.

Success factors


  • Convenience – surprise trips allow time saving for the consumer by removing the search and planning phases of the customer journey that absorb a substantial portion of the pre-trip effort. Additionally, these products act as a simplification tool, supporting users otherwise overwhelmed by an excess of options at their fingertips.

  • Price – value for money is one of the principal success factors of these products. Being able to enjoy another city for a few days at a lower price point per person makes it an economical and practical experience. As well, since these products are often directed towards younger profiles of visitor segments, price is often an outsized determining factor.

  • Surprise factor – not knowing the destination until just a handful of days before embarking on the trip is a way to break from routine and restore the excitement of travel, often lost in the tedium of the planning phase. This element of surprise also supports the category as unique and memorable gifts.


Challenges for this new business model

  • Niche market approach – for tourism suppliers, specializing in a segment through surprise packages has its advantages, often through optimizing marketing efforts. However, as a niche market particularly aimed at young adventurers in search of affordable experiences, market saturation from competitors in the category can easily jeopardize profitability and lead to price wars and other forms of competition.

  • Repeated destinations – packaged surprise gifts depend on B2B relationships with airlines and accommodations. Trips where conditions are most profitable for the package provider, often more affordable destinations, subsequently become dominant suppliers. Consequently, the packages often offer a narrower range of options, relegating the element of surprise to a handful of destinations known to offer the lowest prices.

  • Low-cost product perception – although the surprise factor makes the trip memorable, the experience is not always a success, since either the assigned destination or the quality of the accommodation can end up being disappointing. As well, this type of product usually connotes low cost and, consequently, low quality, damaging the long-term brand value of the product category.


In sum
Overall, surprise trips have proven to attract a considerable audience, fuelled by the excitement of traveling and the convenience of purchase and use of these products. For both the supply and demand sides of travel, surprise packages offer a different and compelling value proposition.

That said, there are a number of drawbacks to the model, particularly on the consumer side, so providers should be aware of market saturation and undermining the strength of the model.

Innovation will undoubtedly be a key factor for the success of this market, whose main challenge will be to continue to provide novel and high quality products without losing profitability.

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