Tech adoption in tourism lags as 80 pc of tour operators are SMEs: Arival

2 in 5 companies lack booking platforms, only 12 pc use AI
2024-10-23
/
/ New Delhi
Tech adoption in tourism lags as 80 pc of tour operators SMEs: Arrival
Tech adoption in tourism lags as 80 pc of tour operators are SMEs: Arival

40 pc of operators lack a reservation system, signalling a significant tech gap in the industry

A report by research firm Arival says that small businesses drive the tourism experiences sector, but tech adoption lags. Online sales rise while AI use remains limited, signalling opportunities for growth.
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Arival, a provider of research on in-destination experiences, says it has published its most comprehensive report to date, The Global Operator Landscape: The State of Experiences, 3rd Edition. 

Based on a survey of more than 7,000 tour, activity, and attraction operators worldwide, this study offers a detailed look into the industry’s current trends, challenges and future outlook.

According to the report, small businesses play a crucial role in the experiences sector. Nearly 80 pc of tour operators fall into the small or medium-sized category, serving a maximum of 10,000 visitors annually. This highlights the entrepreneurial spirit and diverse offerings within the sector.   

The report says that in contrast, visitor attractions drive much of the demand, with half catering to over 50,000 visitors each year. 

Despite the growing shift toward online sales, a significant portion of operators still lacks modern reservation systems, and 2 in 5 operators are without booking platforms.

Douglas Quinby

Douglas Quinby

“The experiences industry is dynamic and diverse, with a mix of small businesses and large attractions driving its growth. However, while online channels continue to grow and adoption of technology has increased, many operators still lack modern booking and ticketing systems and are not using AI.  The sector’s entrepreneurial spirit and passion-driven nature are evident, but there’s a need to balance this with a focus on sustainable growth and strategic technology adoption to remain competitive,” says Douglas Quinby, CEO and Co-Founder of Arival.

According to the report, 80 pc of tour operators are small or medium-sized businesses, reflecting the entrepreneurial diversity of the sector.

It adds that after a robust travel rebound post-pandemic, growth has slowed in 2024, with global operator revenue just surpassing pre-pandemic levels.

The statement adds that 40 pc of operators lack a reservation system, signalling a significant tech gap in the industry. AI adoption remains limited, with only 12 pc of operators actively using it.

Online travel agencies now account for almost 1 in 3 bookings, showcasing the importance of digital channels. Nearly 50 pc of visitor attractions serve over 50,000 visitors annually, dwarfing the smaller footprint of most tour and activity operators, according to the survey.

The findings underscore the need for operators to embrace technology and data-driven strategies for sustainable and competitive growth. 

Quinby emphasised the importance of balancing entrepreneurial passion with a focus on strategic technology adoption to meet evolving market demands.

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