Table of Contents
Executive Summary
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- Market overview
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- Figure 1: Total US tourism expenditures, at current prices, 2014-24
- Impact of COVID-19 on travel tours and activities
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- Figure 2: Short, medium and longer term impact of COVID-19 on travel tours and activities, April 2020
- COVID-19 takeaways
- What tourists are doing
- Travelers focus on the destination
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- Figure 3: Attitudes toward activities, February 2020
- Travelers hear about activities through the grapevine
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- Figure 4: Source of discovery for activities, by age group, February 2020
- Tourists are seeing the sights
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- Figure 5: Types of tours taken, February 2020
- What tourists want
- Young tourists want a little mix of tour types
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- Figure 6: Desired tour types, by age group, February 2020
- Tourists want immersion, but also efficiency
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- Figure 7: Attitudes toward benefits of tours, February 2020
- Tourists want authenticity
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- Figure 8: Attitudes toward uniqueness of tours
- What’s next
The Market – What You Need to Know
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- COVID-19 is a punch in the industry’s gut
- Approaches for the short, medium, and longer term periods
- Successful tour and activity companies are riding modern trends
- High levels of satisfaction can drive word of mouth for tours
- Sightseeing is ripe for premiumization
- History tours need to focus on the learning aspect
- Tours help river cruises thrive
Impact of COVID-19 on Travel Tours and Activities
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- Figure 9: Short, medium and longer term impact of COVID-19 on travel tours and activities, April 2020
- Opportunities and Threats
- Short-term threats
- Short-term opportunities
- Medium-term threats
- Medium-term opportunities
- Longer-term threats
- Longer-term opportunities
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- Figure 10: Most anticipated activities post-Covid-19, April 16-24, 2020
- Impact on the travel tours and activities market
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- Figure 11: Total US tourism expenditures, at current prices, 2014-24
- How the crisis will affect key consumer segments in travel
- How a COVID-19 recession will reshape the travel industry
- High unemployment will lead to reduced income and cautious spending
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- Figure 12: Initial unemployment claims, weekly, seasonally adjusted, 2000-2020
- Travel spending is quick to be cut
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- Figure 13: Post-covid-19 spending priorities, April 16-24, 2020
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- Figure 14: Expenditures for travel, Consumer Expenditure Interview Survey, 2005–2011
- Low oil prices might provide window of relief
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- Figure 15: Price per single barrel of WTI crude oil, inflation adjusted, 2011-2020
- COVID-19: US context
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Market Size and Forecast
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- Coronavirus overshadows an otherwise healthy tourism industry
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- Figure 16: Total US tourism expenditures, at current prices, 2014-24
Market Perspective
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- Tour companies
- The Travel Corporation is taking young tourists’ concerns to heart
- TripAdvisor struggles as travelers seek discovery elsewhere
- Airbnb Experiences growing and ready to take the mantle
- Operators should promote social sharing
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- Figure 17: Opinions of tour types, February 2020
- Sightseeing has more appeal with higher-income travelers
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- Figure 18: Appeal of sightseeing, by HHI, Fall 2019
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- Figure 19: Qualities of a luxury travel experience, affluent/high net worth vs all, May 2019
- Human curiosity can’t be beat
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- Figure 20: Attitudes toward learning, by age group, Fall 2019
- River cruises anchored by tours
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- Figure 21: Attitudes about cruise itineraries, by preferred cruise type, September 2019
Key Trends – What You Need to Know
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- Tour operators doing their part for the planet
- Museums are using VR as a draw
- From A to B with sights to see
- Gamer guides
- Tourism for the people
What’s Happening
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- Tour industry looking to be a leader in saving the planet
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- Figure 22: Tourism Declares declaration instructions, March 2020
- VR bringing a new dimension to tours
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- Figure 23: The DuSable Museum and TIME Immersive present “The March”
- Daytrip’s car service drives tourists to attraction
- Smartphone games can serve as semi-guides
What to Watch
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- Tours of the future will focus on people
- New payments will encourage eco-friendly tours
The Consumer – What You Need to Know
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- Younger tourists are more active in niche tours
- Guides, nature tours are luxury opportunities
- Word of mouth is the best way to discover activities
- Travel influencers can reach younger tourists
- Traditional tours can choose a unique angle
- Competition from outside the sector makes UVPs difficult for wellness tourism
- Activities take a back seat to the destination
- Tour groups should go small
- Authenticity counts for a lot
- Tour and activity segment analysis
Types of Tours
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- Four out of five travelers have taken a tour in the past three years
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- Figure 24: Types of tours taken, February 2020
- Younger travelers are more active and curious
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- Figure 25: Types of tours taken, by age group, February 2020
- More like his-tour-y
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- Figure 26: History tours taken, by gender and age group, February 2020
- Guides aren’t a necessity
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- Figure 27: Format of tours taken, February 2020
- Tour guides have an opportunity with higher income travelers
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- Figure 28: Tours taken, by HHI, February 2020
Activity Discovery
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- Word of mouth is the most powerful tool
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- Figure 29: Source of discovery for activities, February 2020
- Young travelers prefer social discovery over OTAs
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- Figure 30: Source of discovery for activities, by age group, February 2020
- Uniqueness should be a social and travel media focus
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- Figure 31: Sources of activity discovery, all travelers vs those seeking unique experiences, February 2020
Desired Tours
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- Guidance augments free-reign tourist sights
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- Figure 32: Desired tour types, February 2020
- Traditional tours need a refresh
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- Figure 33: Desired tour types, by age group, February 2020
- Young travelers see uniqueness in nature, adventure and the macabre
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- Figure 34: Desired tour types, all travelers vs those seeking unique experiences, February 2020
- Nature tours are a luxury opportunity
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- Figure 35: Desired tour types, by HHI, February 2020
Wellness Activities
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- Relaxation and outdoor fitness should be the focus for wellness activities
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- Figure 36: Desired wellness activities, February 2020
- Activities fall along gender lines
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- Figure 37: Desired wellness activities, by gender, February 2020
- Wellness a tough sell for older travelers
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- Figure 38: Wellness activities not desired, by age group, February 2020
- Cultural treatments are an opening for luxury travelers
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- Figure 39: Appeal of cultural wellness treatments, by HHI, February 2020
Attitudes toward Tours and Activities
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- Vacations are destination focused
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- Figure 40: Attitudes toward activities, February 2020
- Consumer thoughts on spending their vacation time
- Younger travelers put more emphasis on activities
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- Figure 41: Importance of activities, by age group, February 2020
- Big opportunity for small groups
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- Figure 42: Attitudes toward benefits of tours, February 2020
- Figure 43: Immersiveness of tours, by age group, February 2020
- Travelers want authenticity and a trip of “their own”
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- Figure 44: Attitudes toward uniqueness of tours
- Consumer thoughts on authenticity
- Don’t get too crazy with tourism marketing…yet
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- Figure 45: Attitudes toward alternate tour access, February 2020
- Alternate access options are most popular with the least established
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- Figure 46: Attitudes toward alternate tour access, by age group, February 2020
- Parents are open to a little mystery, and a little work
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- Figure 47: Attitudes toward locality and access among 18-44 year olds, by parental status, February 2020
Tourist Segments
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- Factors
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- Figure 48: Travel tours and activities consumer segment breakdown, February 2020
- Tour and Activity Segments
- Traditionalists
- Demographics
- Opportunities
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- Figure 49: Traditionalist segment demographics, February 2020
- Checklisters
- Demographics
- Opportunities
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- Figure 50: Checklister segment demographics, February 2020
- Go-Getters
- Demographics
- Opportunities
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- Figure 51: Go-Getter segment demographics, February 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 52: Total US tourism expenditures and forecast, at current prices, 2014-24
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