Skip to main content

Arival explores the role of online travel agents

News
Arival camel

Newer attractions are benefitting more from third-party online bookings on behalf of tourists

Arival, an information and insights provider for the in-destination experiences industry, has conducted research into the market share of online travel agencies, and the role they play in securing bookings for attractions and events.

The firm has taken a closer look at the age-old question of how important online travel agencies (OTAs) are in the global tours, activities and attractions market.

“There are also some commonly cited statistics, such as ā€œless than 10%,ā€ says Arival CEO and co-founder Douglas Quinby, “but often these are pulled from some previous research report or article and without much context.”

Arival Tours Image

The overall market was worth an estimated $254 billion in 2019, with OTAs contributing less than 5% of this figure. Whilst this represents the share of the entire experiences marketplace, a considerable section of the market has not been addressed yet by traditional tourism distribution, such as escape rooms, FECs, galleries and cultural landmarks which on the whole do not use OTAs.

“Operators and attractions should look at the OTA share of your relevant addressable market,” adds Quinby. “One way we look at this is through our ongoing industry surveys, specifically for tour and attraction operators in the US and Europe.”

Benchmarking travel agents

Focusing on tour sales, OTAs contribute almost a third of tickets with a growing market share, as online bookings recuperate faster than other channels.

Arival believes there are several reasons why the figures, in particular for tours, are vastly above the 5% average:

“Here is the most important [factor]: day tour operators and OTAs are focused on the travel and tourism market. Our industry surveys also focus on tourism, so if you are a day tour operator serving tourists in a leisure tourism destination, that 32% figure is the benchmark you should refer to for your business.”

Arival OTA Share of Bookings by Segment

Whilst activities and attractions also serve tourists, these destinations often serve a larger proportion of regional clientele, avoiding the need for an emphasis on OTAs, such as amusement parks and local history museums.

Attractions also vary from tours in that they have various unique selling points, with Arival giving the example of the Empire State Building and Statue of Liberty as destinations that generate enough traffic without OTA input. Landmarks however may still benefit from using an OTA to explore upcharges and enhancements including VIP experiences, special tours or priority access.

OTAs however shouldn’t be underestimated in their relevance with new and start-up venues looking to accelerate growth from launch. As Arival’s chart shows, operators who have started their business in the last half-decade generate a higher percentage of sales from OTAs compared to more established competitors.

Arival OTA Share of Operator Sales

Concluding with advice for attractions, Quinby has some recommendations: “Connect with other operators in your market and see what distributors they work with if they are not competitive and are comfortable sharing the data. Also, get involved with your local CVB or destination marketing organisation and ask them about how many visitors come to your destination, and how they typically book their travel.”

Working with OTAs is a free guide by Arival that provides more information for operators, available for Insider Free members. A wider range of content, online learning and research materials are available for Insider Pro access members, who can also benefit from 20% discounts on Arival in-person conferences.

Arival will soon bring together creators and sellers in Las Vegas with Arival 360, a major event focused on the tour, activity and attraction sectors, from 10-13 October 2022.

Share this
Adam Whittaker blooloop headshot

Adam Whittaker

Adam studied Marketing and Advertising Management at Leeds Beckett University. Originally from Lancashire and now based in Norfolk, UK, you can usually find him appreciating art deco design or on a roller coaster.

More from this author

More from this author

Related content

Your web browser is out of date. Update your browser for more security, speed and the best experience on this site.

Find out how to update