## In-Destination Experiences Sector: Small Businesses Thrive, Technology Gap Remains a Challenge
The global travel landscape is buzzing with activity, and within it, the in-destination experiences sector is thriving, fueled by the entrepreneurial spirit of small businesses and the allure of unique experiences. Arival, the leading research authority on this sector, has just released its most comprehensive study to date, ‘The Global Operator Landscape: The State of Experiences, 3rd Edition,’ offering invaluable insights into the current state of affairs.
This landmark report, based on a survey of over 7,000 operators worldwide, reveals a dynamic sector with a diverse mix of players: from small tour operators catering to niche interests to large-scale attractions attracting thousands of visitors. A key finding highlights the significant contribution of small and medium-sized enterprises (SMEs) to the industry. Nearly 80% of tour operators fall into this category, demonstrating the entrepreneurial spirit and passion driving the sector’s diversity. From local cultural tours to personalized adventure activities, SMEs offer a unique and intimate experience to travelers.
Technology: A Bridge to Growth and Competitiveness
While small businesses bring a wealth of innovation and passion to the sector, the report underscores the critical need for technology adoption to ensure long-term growth and competitiveness. While online sales channels are gaining traction, a significant portion of operators still rely on outdated or non-existent booking systems, creating a barrier to efficient operations and growth. The report highlights a concerning gap in technology adoption, particularly in the area of artificial intelligence (AI). Currently, only 12% of operators actively use AI in their operations, indicating a reluctance or lack of resources to integrate advanced systems.
Post-Pandemic Recovery: Uneven Progress and Emerging Challenges
The report sheds light on the uneven recovery from the pandemic, with some regions and operators lagging behind. The lack of widespread AI adoption and reliance on outdated booking systems could hinder operators from fully capitalizing on the growing demand for in-destination experiences. The shift towards digital sales channels, while positive, could widen the gap between larger, tech-savvy operators and smaller businesses that are slow to adapt. To remain competitive, smaller operators must invest in modern tools and systems to meet the expectations of travelers seeking seamless online booking experiences.
Arival Activate: A Platform for Growth and Innovation
The upcoming Arival Activate event, set to take place in Edinburgh from November 23-25, 2024, will provide a valuable platform for operators to explore the findings of the Global Operator Landscape report and discuss strategies for navigating the evolving travel landscape. This event will bring together industry leaders to share best practices, network, and explore the latest trends in the in-destination experiences sector.
The Future is Digital: Embracing Technology for Sustainable Growth
The key takeaway from Arival’s latest report is clear: technology adoption and a focus on sustainable growth are critical for the success of the in-destination experiences sector. Operators must embrace innovation and adapt to the ever-evolving needs of travelers. By integrating AI, adopting modern booking systems, and prioritizing digital marketing and sales channels, operators can ensure that they are well-positioned to thrive in the coming years.
The Global Operator Landscape report provides a comprehensive picture of the tours, activities, and attractions sector, highlighting the driving forces behind its growth. While recovery has been uneven, the sector’s resilience is evident in its shift to digital sales channels and the rise of entrepreneurship. The report underscores the need for operators to bridge the technology gap to remain competitive in a dynamic and increasingly digital travel landscape. Attendees at the Arival Activate event can gain valuable insights and prepare for the future of the in-destination experiences sector.
