REI Is Shutting Down Its Adventure Travel Business
by Daniel McCarthy /REI Co-op is closing its travel business, REI Experiences, effective this week.
The company cited economic reasons for the closure, noting that the Experiences brand, which has operated for over 30 years, no longer aligns with its financial goals. In 2022, Experiences served 40,000 travelers, accounting for less than half a percent of REI’s total customer base, and has not turned a profit since its peak in 2019.
REI Adventures offered a range of travel experiences, from easy active trips to more intensive options, with departures into national parks around the U.S., solo travel options, woman-only trips, and more at a range of price points. It sought to bring the REI-brand, one of the best-known adventures brands in the U.S., to travel.
REI Experiences launched a travel advisor program in 2018, offering commissions and incentives, including personal trips, to advisors selling its products. It also partnered with other travel brands, such as UnCruise, to provide “REI-style” excursions across various travel segments. In late 2019, it again invested in travel, acquiring guided adventures and travel company Arizona Outback Adventures (AOA), which it previously had a partnership with it.
Despite these efforts, REI is exiting the travel sector, and eliminating 180 full-time employees and 248 part-time guides roles in the Experiences division. In a letter to employees, REI President and CEO Eric Artz stated, “We’ve held out as long as possible, but the fact remains that Experiences is an unprofitable business for the co-op, and we must adjust course.”
The company is offering full refunds to all affected travelers and will address any associated non-refundable expenses “as appropriate.”
For travel advisors, REI acknowledged the significant impact of this decision. “We know this decision will also significantly impact many of the travel partners we work with across the U.S.,” Artz wrote, adding that advisors can expect REI to reach out this week to terminate existing contracts.