Electronics

Is the multi-day tour segment ready for a strong future?

The multi-day tour was tough for 15 months, but many operators have confirmed that they haven’t booked yet.

According to the World Tourism Organization, international arrivals fell by 74% in 2020, but new reports suggest that multi-day tour providers may have suffered a disproportionate reduction in bookings by 84%.

Study from arrival Reveals insights into the multi-day tour market, which is made up of small, young businesses but emphasizes the lack of technology.

However, there are many benefits to this segment, and the report reveals that 2019 total sales were $ 69 million, with potential for further growth.

Size and shape

Arival estimates that the market is made up of 10,000 players, about 60% of whom are small businesses offering a small number of bespoke scheduled tours.

About 60% of companies have been founded in the last 6 years. This often means that they are more digitally savvy than older companies and are in a better position to sell directly to consumers.

This is one of the reasons why pandemics may demonstrate their strengths, in addition to the fact that tours are often small groups and the empirical nature of the tour itself.

Consumers are often driven online during a pandemic, often embracing virtual tours and experiences as an escape route, but the trend towards experiences has increased over the past year.

Many consumers now want to shake off the boundaries of their homes and generally seek cultural and happy travel, as well as more sustainable travel.

The passion from many companies is that tour operators are determined to fight for a few days and can be optimistic. 72% say they have invested in technology and marketing in recent months to improve their games.

Many reservations have already been returned, and there is a quarter in 2021 where there are no reservations yet, but there are 51% more reservations compared to 2020.

Technical coverage

According to Arival, this segment is lagging behind in technology, with more than half of providers using tour booking systems, and many simply rely on spreadsheets and email to organize their itineraries.

In addition, about 90% say they handle supplier bookings manually.

Multi-day tour providers have expressed concern about the cost and value of technology and feel that the process they are currently using is “good enough for now.”

About 20% of people using the system say they plan to change technology over the next two years, and about one-third will adopt the system.

When it comes to delivery, we’re gradually moving to online channels such as online travel agencies, but almost half of all bookings are made directly, with about 25% coming from OTA.

Optimistic reason

It will be interesting to observe how the multi-day tour segment emerges from the pandemic.

Investors are still looking at segment potential Tourlane attracts $ 20 million in investment In the second half of 2020.

Big players are also looking at TUI’s recently announced segment Work with Nezasa to develop a multi-day tour platform..

* Over 850 respondents participated in the downloadable Arival report Here..

https://www.phocuswire.com/multi-day-tours-segment-future Is the multi-day tour segment ready for a strong future?

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