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The Changing Landscape of Distribution for Tours & Activities

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Simon Lenoir, CEO and founder of Rezdy, shares the latest trends in the attractions and experiences industry. This slide deck will show you:

- A current snapshot of the industry landscape.
- When to use a consumer-direct strategy versus using intermediaries.
- The metrics behind last-minute bookings.
- Trends that are driving the future of this exciting industry.

Published in: Travel
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The Changing Landscape of Distribution for Tours & Activities

  1. 1. The Changing Landscape of Distribution in the Experience Industry By Simon Lenoir, CEO at Rezdy
  2. 2. BOB GILBERT Head of Sales, North America SIMON LENOIR CEO & Co-founder
  3. 3. ABOUT SIMON & REZDY
  4. 4. Today we will: 1. Define the industry 2. Assess the state of the industry 3. Analyze and discuss trends in the changing landscape of distribution
  5. 5. 1. WHAT INDUSTRY??
  6. 6. T&A is an UMBRELLA TERM for 30 distinct industry segments.* *source: Phocuswright 2013-2016
  7. 7. T&A is an UMBRELLA TERM for 30 distinct industry segments.* *source: Phocuswright 2013-2016
  8. 8. 2. STATE OF THE INDUSTRY 5 Reasons why the T&A industry is being left behind
  9. 9. a brief history of (real) time...
  10. 10. REASON #1 FRAGMENTATION - TripAdvisor lists over 700, 000 attractions and experiences. - It’s not an industry, it’s a multitude of “segments”.
  11. 11. ALL THE CATEGORIES Eva to add icons
  12. 12. Eva to add icons 200+
  13. 13. HOTELS T&A No. of suppliers 1,000,000 (HotelsCombined) est. 2,000,000
  14. 14. REASON #2 SMALL BIZ 1 in 3 activity suppliers report gross sales of less than US$250, 000* *source: Phocuswright’s When They Get There and Why They Go: In-Destination Activities, 2013-2016
  15. 15. REASON #3 NO/LOW TECH - 60% of activity suppliers report annual spend on technology of less than US$10, 000* - No tech standard within the industry *source: Phocuswright’s When They Get There and Why They Go: In-Destination Activities, 2013-2016
  16. 16. HOTELS T&A No. of suppliers 1,000,000 (HotelsCombined) est. 2,000,000 Annual tech budget US$ 150k (AHLA) <US$ 25k (Phocuswright) Tech standard OpenTravel None (Rezdy?) Online booking softwares 290 (Capterra) 10-15 Channel managers 50+ <3
  17. 17. REASON #4 NO ASSOCIATION … other than the recent “Experience Network” under the supervision of U.S. Travel
  18. 18. HOTELS T&A No. of suppliers 1,000,000 (HotelsCombined) est. 2,000,000 Annual tech budget US$ 150k (AHLA) <US$ 25k (Phocuswright) Tech standard OpenTravel None (Rezdy?) Online booking softwares 290 (Capterra) 10-15 Channel managers 50+ <3 Association AHLA (US), AHA (AU) None
  19. 19. REASON #5 INERTIA “I don’t want to change anything. I like things the way they are.”
  20. 20. HOTELS T&A No. of suppliers 1,000,000 (HotelsCombined) est. 2,000,000 Annual tech budget US$ 150k (AHLA) <US$ 25k (Phocuswright) Tech standard OpenTravel None (Rezdy?) Online booking softwares 290 (Capterra) 10-15 Channel managers 50+ <3 Association AHLA (US), AHA (AU) None Connected suppliers 85% 5% have distribution Number of OTAs 300 (Siteminder) 5-10 Commission ~15% (most of the volume) 10-35%
  21. 21. THE 5 STAGES OF TECHNOLOGY ADOPTION (Rogers’ bell curve)
  22. 22. 3. TRENDS IN THE CHANGING DISTRIBUTION LANDSCAPE
  23. 23. 5,300+ ACTIVE BUSINESSES IN 88 COUNTRIES 206,000 BOOKINGS PER MONTH $1,200,000,000 IN BOOKINGS PER YEAR $3,200,000 IN BOOKINGS DAILY
  24. 24. Meanwhile in Rezdy… Tours and activities providers will receive $102,740 in bookings during this 45-minute webinar.
  25. 25. Direct VS Distributed DISTRIBUTED 13% DIRECT 87% DISTRIBUTED 17% DIRECT 83% 2014 2016 *source: Rezdy data
  26. 26. THE GROWTH OF 3RD PARTY BOOKINGS WORLDWIDE 3 PIE CHARTS (one for EACH YEAR ANALYZED) Distributed -where are they coming from? OTHER: affiliates, inbound operators, airlines, information websites 2014 2016 *source: Rezdy data
  27. 27. LAST-MINUTE BOOKINGS Still going strong?
  28. 28. THE GROWTH OF 3RD PARTY BOOKINGS WORLDWIDE 3 PIE CHARTS (one for EACH YEAR ANALYZED) TRAVELLERS LEAVING IT LATE(R) *source: Rezdy data 60% 32% 63% 29%2014 2015 2016 <1 week 1-2 wks >2 weeks 11% 61% 29%10% 27%10%
  29. 29. THE GROWTH OF 3RD PARTY BOOKINGS WORLDWIDE 3 PIE CHARTS (one for EACH YEAR ANALYZED) TRAVELLERS LEAVING IT LATE(R) *source: Rezdy data 27% 31% 32% 13% 11% 11% 48% 47% 46% 2014 2015 2016 7% 6% 6% 5% 5% 0-24 hrs 24-48 hrs >96 hrs 48-72 hrs 72-96 hrs
  30. 30. THE GROWTH OF 3RD PARTY BOOKINGS WORLDWIDE 3 PIE CHARTS (one for EACH YEAR ANALYZED) TRAVELLERS LEAVING IT LATE(R) *source: Rezdy data 27% 31% 32% 13% 11% 11% 48% 47% 46% 2014 2015 2016 7% 6% 6% 5% 5% 0-24 hrs 24-48 hrs >96 hrs 48-72 hrs 72-96 hrs +5%
  31. 31. BOOKING 24HRS (OR LESS) IN ADVANCE (direct vs agent) DISTRIBUTED 17% DIRECT 83% DISTRIBUTED 12% DIRECT 88% 2014 2016 *source: Rezdy data
  32. 32. THE GROWTH OF 3RD PARTY BOOKINGS WORLDWIDE 3 PIE CHARTS (one for EACH YEAR ANALYZED) BOOKING 24HRS (OR LESS) IN ADVANCE Distributed - where are they coming from? OTHER: affiliates, inbound operators, airlines, information websites 2014 2016 *source: Rezdy data
  33. 33. MOBILE VS. DESKTOP Who’s winning?
  34. 34. THE GROWTH OF 3RD PARTY BOOKINGS WORLDWIDEINTERMEDIARY ORDERS (desktop vs mobile) MOBILE 27% DESKTOP 73% MOBILE 35% DESKTOP 65% 2014 2016 *source: Rezdy data
  35. 35. THE GROWTH OF 3RD PARTY BOOKINGS WORLDWIDE DESKTOP BOOKINGS GROWTH SINCE 2014 219%
  36. 36. THE GROWTH OF 3RD PARTY BOOKINGS WORLDWIDE DESKTOP BOOKINGS GROWTH SINCE 2014 219% MOBILE BOOKINGS GROWTH SINCE 2014 408%
  37. 37. THE GROWTH OF 3RD PARTY BOOKINGS WORLDWIDE
  38. 38. VALUE TRENDS
  39. 39. TRANSACTION VALUE ($) 2014 2015 2016 20% 29% 36% 10% 5% 26% 27% 32% 10% 5% 30% 26% 30% 9% 5% 0-$100 $100-$200 $200-$500 $500-$1,000 $1,000+ Source: Rezdy 2017
  40. 40. BOOKING VALUE: LESS THAN $100 (direct vs distributed) DISTRIBUTED 9% DIRECT 91% DISTRIBUTED 13% DIRECT 87% 2014 2016 *source: Rezdy data
  41. 41. THE GROWTH OF 3RD PARTY BOOKINGS WORLDWIDE 3 PIE CHARTS (one for EACH YEAR ANALYZED) BOOKING VALUE: LESS THAN $100 Distributed - where are they coming from? OTHER: affiliates, inbound operators, airlines, information websites 2014 2016 *source: Rezdy data
  42. 42. U.S. - DETAILED
  43. 43. DIRECT VS DISTRIBUTED 2014-2016 (US VS WORLD) FROM 2014 TO APR 2017 - AGENT BOOKINGS MONTH BY MONTH USA Source: Rezdy 2017
  44. 44. TOP 10 US STATES by distributed order numbers - 2016 1. WASHINGTON D.C. 2. ILLINOIS 3. NEW YORK 4. ALASKA 5. RHODE ISLAND 6. WYOMING 7. HAWAII 8. NEVADA 9. MARYLAND 10. MINNESOTA Source: Rezdy 2017
  45. 45. 2017-2018: WHO’S COMING?
  46. 46. ALL THE CATEGORIES Eva to add icons
  47. 47. ATTRACTIONS FOOD & GOURMET TOURS ALL-TIME FAVORITES RISING STARS CRUISES SCENIC FLIGHTS WHALE & DOLPHIN WATCHING WATER SPORTS KAYAKING SKYDIVING ZIPLINING ESCAPE ROOMS BEER & BREWERY TOURS FARM STAYS PHOTOGRAPHY TOURS
  48. 48. THE INNOVATORS PIONEERS OF ONLINE DISTRIBUTION
  49. 49. YOU?
  50. 50. OR YOU?
  51. 51. THANK YOU Q&A time! Find Rezdy at IPW 2017 Booth #1157 Illustrations on slides 9, 29, 35, 40 and 47 designed by Freepik; photographs courtesy of Papillon, Luna Park Sydney, Rottnest Express, Opera Australia, Escape Hunt, City Sightseeing San Francisco. ©Rezdy 2017
  52. 52. ABOUT SIMON & REZDY

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