Elevating travel

One of the travel sector’s largest segments – the in-destination industry – takes centre stage at ATM today with Arival, which will highlight the role of tours, activities, attractions and experiences in shaping the way we travel

Like most aspects of travel, the in-destination industry is continually evolving. Before the pandemic, the changing nature of traveller behaviour and the influx of new technologies were the top factors shaping the segment. And in the post-COVID-19 era, new variants, updates in health regulations and border restrictions have further contributed to the sector’s dynamic nature. As such, change has become a constant in the in-destination industry.

Made up of tour operators and providers of activities, attractions, events and experiences, the in-destination industry is not just the third-largest segment of the global travel and tourism sector, it is why people travel in the first place. That is why everyone, from online travel agencies to hotels and destination marketers, is determined to better understand this ever-evolving market.

Gaining in-destination insights is hugely valuable, especially when it comes to discovering the future trends that will shape the face of the market, now, more than ever, as travel industry businesses enter a new era post-COVID-19.

Throwing the spotlight on the in-destination industry, ATM 2022 hosts Arival today. The programme brings together the industry’s brightest minds and leading voices to explore the essential themes defining the future for tours, activities, attractions and experiences in 2022 and beyond.

attractions have been one of the hardesthit sectors from the pandemic, but we are also seeing incredible pent-up demand. Travellers who are coming back into the market are showing dramatically increased intent to experience and to spend on those experiences.

“Our research shows that consumer spend intent on tours is double that of 2019 levels, while spend intent on attraction tickets is up by 31 percent.

“This indicates that travellers want the most out of their trips in 2022. They no longer want to just see and hear. It’s not enough just to go to the top of the tallest building or sit on a tour bus and look and listen. Visitors want to touch, taste, smell and experience.”

Quinby added: “Travellers want to connect with local people, places, food and culture on their trips. And they want to be co-creators of the experience.”

For travellers to have active – not passive – visitor experiences, Quinby stated that it is up to providers to find innovative ways to meet this growing demand. And now, more than ever, it is important for tour and attraction providers to deliver extraordinary experiences in order to enable a comeback for the sector.

NAVIGATING CHALLENGES

Whether it is the way a destination is marketed or a form of technology that is simply a must-have, there are some major challenges that will change the face of the in-destination travel industry.

Discussing this dynamic landscape, Quinby stated: “The key shifts in guest expectations perhaps pose the biggest challenges, and the competition is especially fierce in the UAE, with the dramatic growth of new top-tier attractions and experiences over the past few years.

“In addition, as we shift away from the pandemic, our sector, along with the broader global economy, is facing challenges in hiring, retention and supply chain management, as well as geopolitical uncertainty. We will explore these topics in depth at Arival @ ATM Dubai.”

TECHNOLOGY FOCUS

Another area of the in-destination industry that has transformed significantly in recent years is the influx of technology in the sector. Whereas tourists would turn solely to local operators and often pay on arrival in the past, now, thanks to technological advancements, there is a wealth of options with which to book a range of experiences beforehand.

Quinby explained: “The pandemic has accelerated technology adoption across tours and attractions. Historically, the in-destination industry has lagged other tourism sectors in online booking and creating a great digital guest experience.

“Due to local restrictions on capacity management during the pandemic as well as dramatically accelerated consumer adoption of online shopping, ordering and purchasing, the pandemic has driven eight to 10 years of online growth in just 18 to 24 months. This

Arival, taking place at ATM today, brings together the industry’s brightest minds and leading voices to explore the themes defining the future of the in-destination industry

means that online and advance booking is now preferred among travellers. And this presents an incredible opportunity for experience providers to offer upsells, add-on purchases and premium options to enhance the overall experience and generate additional revenue.”

Aligning with this shift, Arival @ ATM will focus on five key areas of technology this year, the first one being technology and the guest experience, which delves into how new mobile and on-site technologies are improving the guest experience, so as to reduce wait times in lines, notify guests of specific options or activities and provide insights back to operators to improve their offering.

Connectivity is another major focus. Quinby explained: “As more of the travel industry adds experiences to their offering, distribution is growing rapidly and becoming more complex. Direct connectivity between tour operators and attraction systems with reseller platforms will be critical to sustaining efficient growth.”

Dynamic pricing will also be under the spotlight. “While widely adopted for some years in transportation and accommodation, it is still early in tours and attractions, but it is coming. Attractions that smartly leverage dynamic pricing can achieve significant gains in yield in visitors.”

During the pandemic, capacity management became a requirement to mitigate the risk of spreading the virus. However, going forward, capacity management techniques, such as timed entry, dynamic inventory control and guest flow management can be deployed to create a better guest experience. And Arival will explore how.

Finally, Google’s new search product – Google Things to Do – will also be a focus as this feature could have a significant impact on how travellers find and book things to do on their trips. “We have a session devoted to helping operators understand the new product and what it means for our industry,” Quinby concluded.