Explore Worldwide is expanding its Australian team as part of an aggressive international growth strategy, with Product & Operations Director Rachael Stone warning that climate change – not geopolitics – poses the biggest risk to the industry over the next five years.
The small-group adventure operator, which began trading directly in Australia in 2023, currently employs six staff locally and plans to hire additional sales and marketing roles this year, with ambitions to double the team within the next two years.
“Australia is really important to us,” Stone told Travel Weekly during a visit to the market. “We’ve had three consecutive years of growth since launching the regional office in Brisbane, and we anticipate that continuing at pace.”
Australia now accounts for around 10 per cent of Explore Worldwide’s global volume and was its fastest-growing market last year, recording 21 per cent year-on-year growth. The company expects Australia and North America combined could generate up to 50 per cent of total revenue by 2030 as part of a broader diversification strategy backed by new owners focused on international expansion.
Responsible travel demand rising – but value matters
Stone said interest in responsible travel continues to grow, even if consumers remain price-sensitive.
“There’s definitely increased demand compared to a decade ago,” she said. “People want to minimise their environmental footprint, support local economies and understand where their money is going.”
She argued travellers are willing to pay more if they see tangible value – such as fair wages for tour leaders, community-run accommodation and lower-carbon transport – but stressed sustainable travel should enhance, not diminish, the customer experience.
Last year the operator reduced its carbon intensity by 15 per cent while increasing its Net Promoter Score, a result Stone said disproves the perception that sustainability compromises enjoyment.
“For us, responsible travel has been in our DNA for 45 years, so customers see it as a baseline expectation rather than an add-on,” she said.
Small groups help tackle overtourism
Explore Worldwide operates with an average group size of 11 travellers (maximum 16), a model Stone said helps reduce pressure on destinations while delivering more meaningful experiences.
The company actively designs itineraries that include lesser-known locations and prioritises shoulder-season departures to spread visitor demand. In Europe, most trips now run in May, June and September, with increasing demand in March, April and November.
Feedback from local partners also shapes operational decisions. In Italy’s Amalfi Coast, for example, the operator switched from public to private transport after locals reported group tours were straining public bus services.
“If communities suffer, our business model fails,” Stone said. “We have to protect the places we visit.”
Solo travel and first-timers drive growth
Australia’s customer base skews heavily toward solo travellers, who currently account for 63 per cent of bookings in the market. The average traveller age is 62, allowing flexibility outside school holiday periods and supporting shoulder-season demand.
First-time customers are also surging, rising to 46 per cent last year from 41 per cent previously, signalling growing appeal for small-group adventure travel among newcomers.
Stone highlighted strong growth in cycling and walking trips, alongside premium “upgraded” tours combining authentic experiences with higher-end accommodation – a segment up 74 per cent year-on-year.
Climate change overtakes geopolitics as key risk
Despite ongoing geopolitical instability, Stone said climate change is now the industry’s most unpredictable challenge.
“Wildfires, flooding and rising temperatures are forcing us to rethink how and when we operate tours,” she said. “Seasonality is changing, and we can’t just rely on historical patterns anymore.”
Stone warned some destinations traditionally visited in peak summer may become unviable within a decade as extreme heat reshapes travel seasons, singling out Greece as a market that may no longer be practical in July and August.
The operator is shifting capacity toward cooler destinations such as Scandinavia, the Baltics and Iceland, where bookings have surged as travellers seek relief from extreme heat. It is also exploring new destinations including the Faroe Islands and expanding product in northern Europe.
Tour leaders on the ground are increasingly required to adjust itineraries in real time – switching schedules, moving activities to cooler hours and adapting routes as conditions change.
“Geopolitical issues can often be managed because travellers trust operators to keep them safe,” Stone said. “Climate change is more unpredictable, and that makes planning much harder.”
Outlook: growth through immersive travel
Despite the risks, Stone remains optimistic about the sector’s trajectory, citing strong demand for immersive, small-group experiences that allow travellers to step outside their comfort zones safely.
“Our biggest opportunity is welcoming first-time travellers into this style of travel,” she said. “People want meaningful experiences, cultural understanding and the confidence of travelling with experts.”
With hiring underway and expansion plans accelerating, Explore Worldwide is betting that Australia will play a central role in that future – even as the industry navigates an increasingly uncertain climate landscape.
