According to the data from technology provider Rezdy, global spend on Tours and Activities has increased 34% since last summer.
Rezdy CEO Simon Lenoir said: “Mobile bookings have been growing 1 percent per quarter consistently for the last 4 years. This means that the overall share of mobile bookings has grown from 30 percent a few years ago to 45 percent currently. Please note I am not referring to browsing but making the booking. So transactions and payment.”
One of the key benefits of distributing inventory via OTAs, says Lenoir, is that these companies have invested heavily in mobile technology and booking software that provides real-time confirmation to travelers. This makes for a better user experience, which increasses loyalty — and makes it even harder for operators to capture direct bookings.
“OTAs are clearly gaining market shares, so suppliers need to make their own direct channel (their website) competitive, which is not possible when they charge 6 percent fee on top of the normal price. Direct booking should be the supplier’s most profitable channel.
Hotels have learned that lesson a long time ago. Consumers are savvy and have the power to shop around easily. That’s the reason that OTAs don’t charge booking fees — they know too well it’s killing conversion.”
The expansion of platforms where travelers can book in-destination experiences has created a boom for the in-destination segment. The diversity in selection also means greater competition, as travelers now have a plethora of options on what and where to book in-destination activities. This increases the imperative for all players — suppliers, vendors, and platforms — to improve the experience so that travelers can book where, how, and when they want.
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