REI Closes Experiences Division After 40 Years

In January 2025, outdoor retail giant REI Co-op made headlines by announcing the complete shutdown of its Experiences division, marking the end of nearly four decades of adventure travel, outdoor education, and guided exploration services. This decision represents a significant shift in strategy for the company, which has long been synonymous with equipping adventurers and outdoor enthusiasts with gear and knowledge. The closure affects hundreds of employees and thousands of customers who relied on REI’s curated offerings for their outdoor pursuits.

Understanding REI’s Experiences Business

For nearly 40 years, REI’s Experiences division operated as a comprehensive outdoor adventure arm, serving customers who wanted more than just retail equipment. The division encompassed a diverse portfolio of offerings designed to get people outside and engaged with nature. These services ranged from multi-day expedition trips to local community-based classes and one-day excursions.

The Experiences unit provided structured outdoor education in specialized skills such as wilderness navigation, winter mountaineering techniques, and backcountry camping fundamentals. Additionally, REI Adventures offered longer-format international and domestic trips that combined travel with outdoor exploration. Day tours provided accessible entry points for individuals and families seeking guided outdoor experiences without the commitment of extended expeditions. This multifaceted approach allowed REI to capture various customer segments, from beginners taking their first guided hike to experienced adventurers planning expedition-style journeys.

In 2024 alone, the Experiences division served approximately 40,000 customers. While this number might seem substantial, it represented less than 0.4% of REI Co-op’s total customer base, a metric that would become central to the company’s decision-making process regarding the division’s future viability.

The Financial Reality Behind the Decision

REI’s leadership, under President and CEO Eric Artz, faced a difficult truth: despite decades of operation and efforts to optimize profitability, the Experiences business consistently failed to generate positive returns. Artz disclosed that the company explored multiple strategic approaches to make the division profitable but ultimately concluded that each pathway would require significant resource reallocation away from the company’s core retail operations.

The financial burden extended beyond what the division generated directly. The company lost millions of dollars annually across the entire Experiences business when accounting for all operational costs. These expenses included marketing initiatives, technology infrastructure, guide training and employment, facility management, and administrative overhead. Particularly revealing was Artz’s disclosure that even during the division’s peak year in 2019—its best financial performance—the Experiences business still failed to achieve profitability.

This persistent unprofitability meant that REI’s retail division effectively subsidized the Experiences business, directing profits from core merchandise sales toward underwriting adventure trips and classes. From a business perspective, the leadership determined that these resources could generate greater returns and better serve the company’s mission if redirected to the retail operations that comprised the company’s fundamental business model.

Impact on REI Employees and Guides

The closure of the Experiences division resulted in immediate job losses across multiple employment categories. A total of 180 full-time employees and 248 part-time guides found themselves without positions, representing a substantial workforce reduction. These individuals included experienced adventure guides, instructors, program coordinators, marketing specialists, and administrative personnel who had dedicated their careers to helping customers experience outdoor adventures.

Recognizing the human dimension of this business decision, REI implemented a comprehensive severance and transition support package for affected employees. Full-time employees whose positions were eliminated received continued salary payments through March 9, 2025, maintaining their health insurance benefits through the end of March. This continuation period provided affected workers with income stability and healthcare access during their job transition phase.

Additionally, full-time employees received access to separation benefits including formal severance payments calculated based on tenure and position, extended healthcare coverage through COBRA continuation provisions, and professional outplacement services to assist with career transition and job searching. Part-time employees, while facing benefits termination by the end of January 2025, remained eligible for severance compensation. Shared employees—individuals who split their work time between the Experiences division and retail stores—received the opportunity to transition into store-based positions, provided they could meet availability requirements and successfully maintain retail employment standards.

All affected employees remained eligible to receive their 2024 Summit bonuses, which are distributed based on company co-op performance relative to financial projections. Furthermore, the company indicated that former employees would remain eligible for future employment opportunities within REI, potentially allowing talented guides and instructors to find new roles as the organization evolved.

Understanding the Market Opportunity This Creates

While the closure represents a concluded chapter for REI, industry analysts and smaller adventure travel companies view the development differently. The exit of a major player with significant brand recognition and marketing resources creates market space for smaller, specialized travel operators to expand their offerings and reach new customers.

Smaller adventure tour companies, which have historically competed against REI’s massive brand presence and substantial marketing budgets, now face reduced competitive pressure in the adventure travel and guided experience marketplace. These companies possess advantages that REI’s retail-focused structure could not replicate: dedicated focus on travel operations, specialized expertise in particular adventure categories, and organizational structures optimized specifically for adventure delivery rather than balancing retail and experiences divisions.

The customer base previously served by REI Experiences—individuals seeking guided outdoor adventures, educational climbing courses, or expedition trips—will likely migrate toward alternative providers. This presents a significant growth opportunity for established adventure travel operators and emerging specialized companies seeking to expand market share without competing against REI’s retail infrastructure.

What This Means for Current and Prospective Customers

Customers who had enrolled in upcoming REI Experiences trips or classes faced immediate disruption. The company issued refunds to customers with bookings through the closure process, ensuring that prepaid customers received financial reimbursement. However, the abrupt cancellation of programming eliminated access to specific trips and classes that customers had planned around.

For prospective adventure travelers previously considering REI options, the closure eliminates what had been an established pathway for guided outdoor experiences. Individuals interested in structured adventure travel, outdoor skill-building courses, or guided expeditions must now identify alternative service providers. This transition requires research into other reputable adventure travel companies, outdoor education organizations, and guided experience providers that offer comparable programming.

The market does offer numerous alternatives, from specialized expedition companies focusing on specific destinations or activities to local outdoor clubs and regional guide services. However, the convenience of booking through REI’s established platform and integrated retail infrastructure is no longer available, requiring customers to navigate a more fragmented marketplace of adventure travel providers.

REI’s Future Direction in Outdoor Education

Despite concluding its dedicated Experiences division, REI indicated that the company continues to believe outdoor education and expertise remain important components of its mission. The company signaled that it would explore alternative mechanisms for delivering outdoor knowledge to customers, though specific details regarding reimagined programs remain undefined.

This suggests that REI may develop new approaches to customer education that integrate more directly with retail operations or leverage digital platforms for knowledge dissemination. The company might expand educational content through its website and digital channels, offer in-store clinics and workshops, or develop partnerships with outdoor organizations rather than maintaining a proprietary adventure travel division.

Such evolved approaches could potentially allow REI to continue supporting outdoor education without the substantial operational costs and staffing requirements that characterized the dedicated Experiences division. However, the transition from direct experience delivery to alternative educational models represents a fundamental shift in how the company serves customers seeking to develop outdoor skills and knowledge.

Industry Implications and Market Dynamics

REI’s exit from the adventure travel market reflects broader economic pressures affecting the outdoor industry. Even as outdoor recreation participation has grown and outdoor retail has expanded significantly, the structured adventure travel and guided experience segment faces distinct profitability challenges.

The REI closure demonstrates that scale and brand recognition alone cannot overcome the operational economics of adventure travel, particularly when competing within a diversified retail organization. Adventure travel requires specialized labor (experienced guides), capital-intensive logistics, variable demand cycles, and significant marketing investment—cost structures that challenge profitability regardless of company size or brand strength.

Conversely, the market for authentic outdoor experiences and guided adventures continues to demonstrate customer demand. The 40,000 customers served by REI Experiences in 2024 represent genuine market interest in guided adventure offerings. The viability question is not whether customers want these experiences but whether they can be delivered profitably by various business models.

Smaller companies and specialized operators with lower overhead structures, focused brand positioning, and optimized supply chains may prove more capable of achieving profitability in this space than larger diversified retailers.

Frequently Asked Questions

What happens to existing REI Experiences bookings?

REI processed full refunds for customers with pending reservations through their Experiences division. Customers received communications regarding their specific bookings and refund procedures.

Can former REI guides find employment elsewhere?

Former REI guides possess valuable certifications, experience, and expertise that remain highly marketable within the adventure travel industry. Other expedition companies, guide services, and outdoor organizations actively recruit experienced guides. The outplacement services provided by REI can assist guides in identifying alternative employment opportunities.

Will REI offer any outdoor classes or education in the future?

REI has indicated that it remains committed to outdoor education but through alternative delivery mechanisms not yet fully detailed. The company may expand digital educational content, in-store programming, or strategic partnerships rather than maintaining a dedicated experiences division.

How does this affect REI’s retail operations?

REI’s closure of the Experiences division allows the company to concentrate resources on its core retail business. This refocus may result in expanded inventory offerings, enhanced store experiences, or improved service in the company’s primary business areas.

Are there alternative providers for REI Experiences customers?

Numerous adventure travel companies, outdoor schools, and specialized guide services offer comparable programming. Customers can research companies specializing in specific activity types (climbing, backpacking, skiing) or geographic regions to identify suitable alternatives.

Key Takeaways

• REI permanently closed its 40-year-old Experiences division in January 2025, citing persistent unprofitability despite multiple operational improvement attempts
• The closure eliminated 180 full-time positions and 248 part-time guide roles, with affected employees receiving severance, extended benefits, and outplacement support
• The Experiences division served less than 0.4% of REI’s customer base while losing millions annually, even during peak performance years
• The market closure creates opportunities for smaller, specialized adventure travel companies to expand without competing against REI’s marketing resources
• Customers previously relying on REI Experiences must identify alternative adventure travel and guided experience providers
• REI plans to explore alternative outdoor education delivery methods but has not detailed specific replacement programs