Skift Take

The digital revolution has finally come for tours and activities. Our latest research report dives into challenges for this fragmented sector as it shifts increasingly online and to mobile, but highlights the potential market opportunity for a very diverse, experiential space.

Today we are launching the latest report for our Skift Research subscribers, The State of Tours and Activities 2018.

The tours and activities segment is the third-largest in the travel industry after flights and accommodations, accounting for around one-tenth of global travel revenue and growing. Estimates show that the tours and activities segment drove approximately $135 billion in revenue globally in 2016, and could reach as much as $183 billion by 2020. Many in the global travel industry see the segment as a new frontier, particularly when it comes to the untapped potential of online bookings. They are hopeful that tours and activities will follow the same trajectory to maturity as hotel and flight bookings.

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Skift Research expects the tours and activities space will see significant growth in years to come, particularly as operators continue to move their inventory to online marketplaces. Nevertheless, there will likely be growing pains along the way as fragmented, offline, small suppliers seek to legitimize their businesses by increasing their scale, access to distribution, and consumer reach.

In this report, we take a deep dive into the current state of the tours and activities space. We highlight the growing prominence of online booking platforms and software, and include a proprietary analysis of distribution platform inventory on a geographic basis. We also look at emerging trends in the space, including the rise of Airbnb’s Experiences product and peer-to-peer tours, as well as how the Chinese and Indian outbound markets fit into the bigger picture. We discuss some of the opportunities and challenges for marketplaces and suppliers and provide key insights from industry leaders.

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What You’ll Learn From This Report

  • Venture capital investment trends in tours and activities
  • An overview of the distribution and technology landscape given increasing use of online booking platforms and software providers
  • Skift Research’s proprietary analysis of select online travel agency inventory with estimated market shares
  • Challenges and opportunities in areas such as advance bookings and mobile
  • A discussion of how suppliers are using technology to increase reach and access
  • How experiential travel has resulted in the rise of new hybrid traditional-experiential tour models
  • The viability of peer-to-peer platforms, such as Airbnb’s Experiences
  • The market potential for tours and activities in China and India
  • Skift Research’s outlook for usage of technology, peer-to-peer tours, optimizing booking windows, venture capital investments, and platforms expanding reach

Subscribe to Skift Research Reports

This is the latest in a series of monthly reports, data sheets, and analyst calls aimed at analyzing the fault lines of disruption in travel. These reports are intended for the busy travel industry decision-maker. Tap into the opinions and insights of our seasoned network of staffers and contributors. Over 200 hours of desk research, data collection, and/or analysis goes into each report.

After you subscribe, you will gain access to our entire vault of reports conducted on topics ranging from technology to marketing strategy to deep dives on key travel brands. Reports are available online in a responsive design format, or you can also buy each report a la carte at a higher price.

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Tags: airbnb, attractions, getyourguide, skift research, tour operators, tours, tours and activities, venture capital, viator

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