TPAS2020 Selling more Tours&Activities online: Get ready for the market recovery

Selling more Tours
& Activities online
Prepare yourself for the market recovery

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Selling more Tours & Activities online

SpeakerSpeakerSpeaker
Roberto
Di Giacomo
Fernando
Miguel
Santos

GROUP
Who we are - Introduction
We are TUI Destination Experiences (“TUI DX”), one of the growth drivers of the TUI Group –
the world’s leading tourism group
Turnover
€18.9bn1
Underlying
EBITA
€1.19bn1,2
71,5001
colleagues
27 million1
guests
TUI DX Hotel Markets &
Airlines
Cruise
GROUP STRUCTURE
Note: (1 FY 18/19 data; 2 pre Boeing MAX impact

Tours & activities (“T&A”) is a large, high growth, under digitalized market and a key driver of customer
holiday decision and loyalty.
The Tours & Activities opportunity
Large growth market
T&A market (in €bn)
20
19
20
20
20
21
20
22
20
24
20
23
72%
75%
12%
Low degree
of digitalization
% of products bookable
online
Important
for search funnel
Aspects influencing holiday
decision
Driver
of customer loyalty
Net Promoter
Score

Tours & activities (“T&A”) is a large, high growth, under digitalized market and a key driver of customer
holiday decision and loyalty
Large growth market Low degree
of digitalization
Important
for search funnel
Driver
of customer loyalty
3rd
largest market
segment in travel
outgrowing the overall
market by almost
a factor of 2
Under digitalized
market with much
room for further
digital growth.
Early movers will
have a USP on the
demand side
T&A products play
an important role
in the overall holiday
booking process
T&A have a positive
impact on customer
satisfaction and
loyalty metrics

The Tours & Activities segment covers
a wide range of attractions and several
categories of operated experiences
Examples of product offering
Museum & ArtI
PerformancesIII
Tours & AttractionsII
Sports & EventsIV
Active & adventureV
WellnessVI
Food & WineVII
NightlifeVIII

The Tours & Activities segment covers
a wide range of attractions and several
categories of operated experiences
Museum & ArtI
PerformancesIII
Tours & AttractionsII
Sports & EventsIV
Active & adventureV
WellnessVI
Food & WineVII
NightlifeVIII
Examples of product offering

19 %
14 %
22 %
35 %
ExperiencesPhocuswright Inc., 2019 U.S.
Travel Activities Market Opportunity & Consumer Behaviour
Before booking any other element of the trip, such as flights or lodging
At the same time as booking
transportation and lodging
After booking transportation and lodging
but before arriving at destination
No purchase/payment required
10 % While traveling in destination
The Tours & Activities Segment
Travelers research Tours and Activities before they book other trip components, until they are in the destination

18 % Popular or famous activity
Question: Which of the following best describes your reason
for ultimately choosing each specific activity? Select one
Base: U.S. Active Travelers (N#1,017
Source: Experiences 2019; U.S. Travel Activities Market Opportunity &
Consumer Behavior © 2019 Phocuswright Inc.All rights Reserved
7 % Part of a pre-arranged
package or tour
Museum, zoo, landmarks, attractions
Destination passes
8 % Most affordable choice among options
11 % Found a great deal
19 % Someone else in my group wanted to do it Culinary, indoor amusement, spa
21 % Conveniently located to my accomodations Culinary, cultural, festival
31 % Key driver for the trip
31 % I always wanted to do it

3 % Kid friendly / something my kids wanted to do
4 % Weather conditions were suitable
5 % Provided an authentic local experience
6 % Learned about activity researching online
7 % Recommended by someone I know
3 % Learned about it researching offline
3 % Was a mobile, location-based offer
3 % Offered on the street, in destination
Question: Which of the following best describes your reason
for ultimately choosing each specific activity? Select one
Base: U.S. Active Travelers (N#1,017
Source: Experiences 2019; U.S. Travel Activities Market Opportunity &
Consumer Behavior © 2019 Phocuswright Inc.All rights Reserved

The Tours & Activities Segment
Travel sites
There is a wide variety of travel companies and opportunities to sell Tours & Activities
Cruises
Transportation
Hotels
Platforms
Destination Guides
Technology Partners
Travel Agents

Covid-19 Trends & Measures
● Prior to the C19 pandemic, January 2020 saw the best booking month
in the company’s history
● The whole sector, consisting of one million operators, was valued
at $254 billion for 2019
● The tour-operator sector has seen bookings decline by 85 percent year-over-year
● Attractions closure and reopening (Health & Safety measures, limited admission
and availability)
● First positive signs for 2021 from other travel products (flights, hotels, packages)
Source: The Travel Industry Turned Upside Down, Skiuft Research and McKinsey & Company, September 2020
“Arival’s Coronavirus Impact Pulse,” Arival, April 30May 5, 2020,
https://arival.travel/research/presentation-arivals-coronavirus-pulse-report/

We have segmented our travellers in 8 buckets to prioritize

The size of the
bubble is proportional
to the share of wallet
Travelistas will be the first to start travel, but the bookings will come from the Smart Tanners

Customer segments & detailed travel attitude post Covid-19 1/2

Customer segments & detailed travel attitude post Covid-19 2/2

The future
of travel
for our users
is moving Digital
with a focus
on Reliability,
Sustainability
and Well-being
Source: Sparkler I Part of PA Consulting:
lockdown unlocked, Webinar#1, 17 April 2020
https://www.phocuswire.com/travelperk-after-coronavirus-travel-wont-be-the-same?oly_enc_id=0340C3889012I0U
https://www.ipsosglobaltrends.com/covid-19/

Place
further emphasis
on Individualization
& Trust

GUEST JOURNEY

Joining us from Berlin, Germany are Mia
34 yrs) and Stefan (36 yrs) & their 6
year old daughter, Hana. Mia is a school
teacher and Stefan manages a local
supermarket. Both are active on
Facebook, Mia uses an iPhone and
loves Instagram, Stefan prefers to use
Android, but only uses social to keep up
with family.

They’ll be travelling to Tenerife
with their son in April 2021, staying
at a TUI Blue hotel for 10 days.

They booked online in Dec 2020.

PRETRAVEL

Mia gets ‘Thank you for Booking’
confirmation email. Whilst reviewing she
sees a pop-up prompting to view
Experiences available during their
holiday. She has a quick look
but doesn’t add anything to the
shopping cart.
 115 days

Mia start to research things to do on
holiday & clicks through banners
to read more about Experiences, even
adding some to her cart but still doesn’t
buy. She is however tagged
for a retargeting campaign on
Facebook.
 100 days

Whilst sending a happy birthday
message in Facebook to her friend
Anuska, Mia is retargeted
to book the Whale & Dolphin Watching
Catamaran trip she’d added to her
shopping cart, offering a 5% discount.
This time she buys!
 90 days

They receive an email about
Experiences available during their
holiday with a 5% early booking
discount available now & Experiences
likely to sell out & is prompted
to download App.
 50 days

They receive a Holiday Checklist email
including Recommended Experiences
to book for Family Wurtz & prompt
to download App.
 30 days

They receive a ‘Prepare to go’ email
including ‘Last Chance Offers’ with up to
10% early booking discount prompt to
download App or to register to the
website
Day -15

1 to 7 Days before holiday they receive
messages or email about:
● Process for finding and book the
transfer bus
● Things to do once in destination
● What do to/contacts if there are
any problems
 1 to 7 Days

ARRIVE AT HOTEL

● Where to get information
● What’s happening in destination
(top recommended Experiences)
● Please contact us for more details
and local help
Guest receives a welcome
message

They book a boat
trip Experience online

Weather is stormy, and TUI
need to cancel Experience
We message them to inform
of cancellation and to offer
alternative trips

PRERETURN

2 days before departure, Stefan
receives a message informing on where
to find details for his departure transfer,
and how he can get in touch in case of
any problems

BACK HOME

Stefan and his family have arrived
home. He is sent a survey about his
stay.
A week later, Stefan receives an email
with personalised recommendations on
activities to do in Berlin, Paris or Rome.

Tours & Activities: Stand-alone and cross-selling
It’s a gray January Saturday
afternoon when Mary goes on
your website to research or book
hotel / flights for a holiday
with her family
While / just after booking she
sees a pop-up prompting to
view experiences available
during their holiday
While booking…
After booking
she receives
50 days,
30 days
and 7 days
from departure, emails/
notification on your mobile
App about Experiences
available during their
holiday, with early booking
discounts available now &
Experiences likely
to sell out…
Pre-arrival…
At/after arrival she receives
a welcome message, with also
advertised “What’s happening in
destination” (e.g. top recommended
Experiences) with links to book them
In-destination…
A week after returning home,
Mary receives an email / notification
with personalized recommendations
on activities to do near her home town
Post holiday…

7 Best practices when offering tours and activities online
1. Consider the full customer journey
2. Integrate with content and offer unbiased suggestions;
success often comes with focus on few destinations.
3. Develop product comparison pages for product categories
4. Be clear in your booking CTAs; many visitors will be in
booking-mode or even in-destination
5. Whenever possible, cross-sell with other travel products
6. Never forget the top attractions, and avoiding segmenting
too much your audience with too many niche products
7. Whenever possible use a booking widget, or link directly
to product pages

Watch this session on YouTube at:
youtube.com/travelpayoutsglobalThank you!
м м
Roberto Di Giacomo
Musement
Fernando Miguel Santos
Musement
Roberto Di GiacomoFernando Miguel Santos

ContactsContactsContacts
support@travelpayouts.com

TPAS2020 Selling more Tours&Activities online: Get ready for the market recovery

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