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Potential gap in technology adoption could hinder the sector's growth
Research firm Arival has unveiled its largest-ever study of travel activities, called The Global Operator Landscape: The State of Experiences.
Arival surveyed more than 7,000 operators of day trip, activity, attraction and experience businesses worldwide for the landmark report that provides a comprehensive view of the industry's state and structure, covering key trends in operator performance and outlook, sales and distribution and technology adoption.
The research was conducted in partnership with online travel experiences marketplace GetYourGuide, as well as the Catalan Tourism Board, booking system providers Expian, Rezgo and TripWorks, and online marketplace Viator.
According to the data, 80% of tour operators fall into the small- or medium-sized category, serving a maximum of 10,000 guests annually.
The report also revealed that despite the increased prominence of online sales channels, a significant number of operators still need to adopt modern booking and ticketing systems, and almost two in five global operators still don’t have a reservation system. This indicates a potential gap in technology adoption that could hinder the sector's growth and efficiency.
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Douglas Quinby, CEO and co-founder of Arival, said: "The experiences industry is dynamic and diverse, with a mix of small businesses and large attractions driving its growth. However, while online channels continue to grow and adoption of technology has increased, many operators still lack modern booking and ticketing systems and are not using AI.
Key findings from the report found that globally, operator revenue is set to exceed the pre-pandemic peak this year, but the recovery has been unsteady. After a period of travel recovery from 2021-2023, growth has slowed, especially throughout 2024.
Online sales channels continue to strengthen, with online travel agencies (OTAs) now accounting for nearly one in three bookings for tour and activity operators.
Visitor attractions are the largest draw for destinations, with nearly 50% serving at least 50,000 guests annually, compared to just 9% of tour and activity operators.
The experiences sector is ripe with entrepreneurship, with nearly 60% of tour operators and 40% of activity businesses founded in the past decade.
Even amid the toughest years of the pandemic, entrepreneurs launched new businesses and the number of startups has picked up as the pandemic has receded.
For more information, visit arival.travel
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