At the Travel Business Academy, a professional online course teaching entrepreneurs how to start a travel business, we have been researching and analyzing the in-destination mobile app travel business.
This article looks at the current online booking and mobile booking landscape for the tour and activity market and shows where a large entrepreneurial opportunity lies.
The PhoCuswright research report When They Get There (And Why They Go), first published in February 2011, shed a boat-load of interesting data on the tour and activity market.
For example, highlights covered in the ten-page summary report include the following:
- Travelers spent $27 billion on activities, attractions, events, and tours in 2009.
- Most activity providers (operators) generate revenue under $1 million with 33% generating $250,000 or less.
- The majority of the operators in the “in-destination” activities industry are self-employed, mom and pop business, true SMBs.
- The average price of an activity purchase is less than $100.
- Operators are very limited in their technological know-how.
- Fewer than four out of ten operators sell activity bookings through a website.
- One in five operators have no website. Yes, you read that correctly.
- Phone sales account for 60% of sales.
The in-destination tours and activity business is a run by local small businesses.
After reading the report summary data above you would probably decipher that the tour and activity industry is run by small businesses. Indeed, small activity providers generally employ between one and five people Read more