European activities market reaches €38m
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European travellers spent 13% more on travel activities in 2013 than the previous year, accumulating US$52 billion (EUR38 bn, GBP31bn) in sales.
A new report from PhoCusWright also found that while online start-ups are hoping to get their share of bookings, most activities are sold offline perhaps through travel agents, call centres or on the door.
“The travel activities opportunity is substantial, but so are the segment’s challenges,” said Douglas Quinby, PhoCusWright’s vice president, research. “The tools and technologies needed to transform the activities marketplace exist, but numerous inhibitors – including a highly fragmented activity provider landscape, entrenched booking behaviors, barriers to last-minute availability and challenging economics – are slowing the digitisation of one of travel’s stubbornly offline segments.”
He believes there is still potential for a “disruptive player” to take the gains in the online market, but “profits will be painstakingly earned”.
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