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Top 3 Tour & Activity Sector Myths

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Being a leading online booking software provider geared towards tours and activities, Rezdy's data has allowed us to bust or confirm these top 3 myths.

Here's an edited version of what our CEO & Founder, Simon Lenoir, presented at Travel Tech in Sydney, 2014.

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Top 3 Tour & Activity Sector Myths

  1. 1. B2B technology powering the Tours & Activities industry
  2. 2. Online Bookings Made Easy! About Rezdy ● SCUBA diving 2006 ● Founded in 2011 in Australia ● Specialised in tours, activities, rentals, charters, shuttles ● VC backed, > $1.5M raised ● HQ in Sydney & San Francisco ● We are a B2B only ● We provide technology
  3. 3. Tour Operator Software = PMS Online Bookings Made Easy!
  4. 4. Channel Manager
  5. 5. Top 3 Tour & Activity Sector Myths
  6. 6. Myth #1 People tend to book tours & activities via offline sources
  7. 7. Theory is most bookings come from... Concierges VICs Walk-ins Online Bookings Made Easy!
  8. 8. Rezdy survey: Booking channels Over 60% percent of tour operators said their own website is the most effective booking channel SOURCE: Rezdy survey 2014 Online Bookings Made Easy!
  9. 9. Rezdy customers revenues $12M /m $7.5M manually entered (offline) $4M on supplier website from desktop and mobile devices $500k from agents Online Bookings Made Easy!
  10. 10. Mobile bookings currently at 28% Percentage of bookings from mobile devices are increasing 1% per quarter Online Bookings Made Easy!
  11. 11. Myth #1 CONFIRMED! People tend to book tours & activities via offline sources
  12. 12. Myth #2 People tend to book tours & activities last minute
  13. 13. Online Bookings Made Easy! Flights + accommodation are booked months to weeks in advance Tours and activities are booked last minute in-destination Theory is...
  14. 14. Online Bookings Made Easy! Booking volume ● Bookings this year: 110,000
  15. 15. Online Bookings Made Easy! Booking volume ● Bookings this year: 110,000 ● Bookings made less than 7 days in advance: 51.5% < 7 days
  16. 16. Online Bookings Made Easy! Booking value $ ● Bookings made less than 7 days in advance: 33% ● Huge opportunity in the 7 to 30 days range ● Smaller activities are booked last minute (Bike and Kayak rental, Hop-on Hop-off city tours) < 7 days
  17. 17. Myth #2 BUSTED! People tend to book tours & activities last minute
  18. 18. Myth #3 The tours and activities market is too hard
  19. 19. Online Bookings Made Easy! Theory is... ● Very fragmented market ● Many different verticals ● Scattered across locations ● Most suppliers are small businesses
  20. 20. Online Bookings Made Easy! Confirming the myth ● Rezdy has 50 categories (e.g. wine tours, surfing, whale watching, hot air balloon) ● 12 product types (e.g. single day, multi-day, rental, shuttle, lesson) ● Approx. 200,000 tour operators worldwide ● Tour operator average turnover is $240k pa
  21. 21. Online Bookings Made Easy! Busting the myth ● 200,000 suppliers X $240k turnover per annum = $48B addressable market ● Tour and activity operators willing to pay between 10% and 25% commission ● OTAs contribution to booking volumes is still small compared to the hotel industry ● Rezdy API provides 14,000 products from 750 suppliers with images, descriptions, rates & availabilities
  22. 22. Myth #3 BUSTED? CONFIRMED? The tours and activities market is too hard
  23. 23. Thank You Rezdy.com

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