The next big travel technology opportunity: a mobile-only booking giant for tours and activities

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

By Matt Zito, an online travel business consultant.  Published in –

About hospitalitytechnology

Technology is making greater and greater inroads into our lives. Right from when we wake up in the morning to when we head to sleep – we cannot imagine a life without the gadgets and gizmos that make life easy and interesting. When we travel and stay in hotels, our expectations are no different. We expect all the technological amenities we easily access at home if not more. The hospitality industry in increasingly accessing technology to wow guests, optimize their use of manpower, control hotel functions in an integrated manner and on the whole reduce costs while increasing efficiency. This blog is meant to track these technological changes happening in the hospitality sector. The growing move towards sophisticated hotel ERP, the growing use of cloud computing, the rapidly changing customer facing devices – smart phones and iPads, the increasing security concerns and more. Expect to find interesting articles, whitepapers, thoughts, and observations. Feel free to comment and even mail us content that you don’t mind posted here. Happy reading!
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