2016 Industry Snapshot - NCE Tourism · Every year since 2006 the ATTA has surveyed its growing...

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INDUSTRY SNAPSHOT20 16

Every year since 2006 the ATTA has surveyed its growing database of tour operators. Each year adventure travel tour operators are invited to share information about their business operations as well as trends they are experiencing in traveler demographics, destinations, and activities.

The ATTA Industry Snapshot offers those already working in adventure travel with a useful benchmarking tool, and those outside the industry with perspective on the health, outlook and characteristics of this dynamic industry.

The 2016 Industry Snapshot asks respondents to share information about the 2015 business year. The survey was conducted using QuestionPro Online Survey Software during the month of February 2016. Two hundred and sixty nine completed surveys were returned, along with two hundred and fifty one partially complete surveys. Respondents came from companies headquartered in eighty two different countries.

Respondent Profile

The largest group of respondents have company headquarters in North America (35 percent), followed by Europe (21 percent) and South America (18 percent). Fifty-eight percent of respondents characterize themselves as inbound (supplier) companies, 26% characterize themselves as inbound and outbound (buyer), and 17 percent characterize themselves as outbound only.

Result Highlights

Company Financials

Companies from all regions of the world have a favorable revenue outlook for 2016. Seventy percent of respondents say they expect revenues to be up in 2016, 22 percent expect revenues to be flat, and eight percent expect revenues to be down. Looking at revenue projections regionally, companies in South America are the most bullish on adventure travel, expecting a 27 percent increase in revenues for 2016 over 2015. In terms of profit, companies in North America and South America expect profits up as much as 33 percent over 2015.

The primary factor influencing the positive revenue and profit projections is new customers and adding new products while controlling costs.

INDUSTRY SNAPSHOT20 16 © 2016, ATTA

2016 Adventure Travel Trade Association Industry Snapshot

Operations

As in past years, operations is the area in which most companies are adding staff (35%). Twenty-eight percent of revenue is spent on payroll. Marketing budgets have been increasing every year and will be up again in 2016, at an average of $169,245 they are 18 percent higher than 2015, and six percent of revenue. Booking

When asked if their company has an online reservation system that accepts credit cards, 53 percent of adventure travel tour operators said they do not.

For those companies that do have an online booking system (online booking defined as an automated system to handle the entire transaction from trip selection, availability confirmation and payment) companies in the Middle East and Europe had the highest percentage of their bookings completed online, with 48 percent and 47 percent respectively.

Traveler and Product Trends

Travelers

Globally, the average age of adventure traveler customers is 48. Tour operators reported fifty percent of their adventure travelers are between the ages of 41 and 60.

These adventure traveler customers are slightly more likely to be female (53 percent). Most are traveling as couples (36 percent) and in groups (32 percent).

Solo travelers and families each make up approximately 17 percent of adventure travel customers.

Itineraries and Activities

It is interesting to note that while families and solo travelers make up the smallest percentage of adventure travel customers at this time, 72 percent of adventure companies say they are developing more itineraries to serve families and multi-generational groups. Forty two percent say they are developing more itineraries to appeal to solo travelers. Seventeen percent are working on trips specifically to appeal to LGBT (lesbian, gay, bisexual, transgender) travelers.

Custom itineraries, soft adventures and cultural adventures are the most in-demand types of itineraries. ‘Soft adventures’ is a general term that includes activities such as backpacking, birdwatching, camping, canoeing, cycling, fishing, hiking, horseback riding, sea kayaking, rafting, safaris, surfing, snorkeling, for example.


Created by Ecem Afacan

from the Noun Project

When asked what trends they see as most significant in driving product development in adventure travel today, adventure travel companies offered a broad range of insights. A few direct quotes from this open-ended question are provided below:

“Increasing need to implement a social element into the trip such as visiting an orphanage, home for elders, etc.”

“Comfort, safety, security, reassurance that tour operators give to their guests.”

“Greater demand for more interaction with the community.”

“Tailor made experiences that offer the feeling that you ‘are the only one’ there - complete immersion and authenticity.”

Trip Duration and Price

Trip duration ranges from five days to nine days. Reported trip prices ranged from $167 USD per day (for companies based in Central America/Caribbean) to $448 USD per day (for companies based in North America).

Destinations

The top five regions of the world receiving increased interest from travelers are South America, Central America, North America, Southern Africa and Western Europe. The top three countries that clients are booking are Italy, United States, and Spain.

Destination Benefits

Adventure travel tour operators estimate that 65% of the per guest trip cost remains in the local region. Furthermore, they estimate each guest spends approximately $145 USD on local handicrafts or souvenirs.


Organization Headquarters

North America 35%

Africa 9%

Europe 21%


Pacific 2%

Middle East 3%

Central America 3%

Asia 8%

South America 18%

Tour Operation Type

Outbound (buyer) 17%

Outbound and Inbound 26%

Inbound (supplier) 57%


Customers Per Year

HEADQUARTERS CUSTOMERS PER YEAR

AFRICA 2,863

ASIA 6,578

CENTRAL AMERICA / CARIBBEAN 14,402

EUROPE 7,908

MIDDLE EAST 2,157

NORTH AMERICA 10,472

SOUTH AMERICA 4,198


Trip Length

HEADQUARTERS LENGTH IN DAYS

AFRICA 9

ASIA 8

CENTRAL AMERICA / CARIBBEAN 5

EUROPE 7

MIDDLE EAST 9

NORTH AMERICA 8

PACIFIC 9

SOUTH AMERICA 6


COMPANY SIZE IN 2014 BY REVENUE LENGTH IN DAYS

$0-250K 6

$250K-1M 8

$1M-5M 9

GREATER THAN $5M 8

Trip Price Per Day in US DollarsIncluding lodging, excluding airfares


HEADQUARTERS PER DAY, 2015CHANGE OVER/UNDER

2014

AFRICA $285 9%

ASIA $178 8%

CENTRAL AMERICA / CARIBBEAN $167 65%

EUROPE $200 2%

MIDDLE EAST $288 7%

NORTH AMERICA $448 1%

SOUTH AMERICA $255 22%

* Regions not containing sufficient sample size are excluded from this chart.

** Trip prices are quoted in USD each year and may be affected by fluctuating exchange rates year over year. Survey respondents provide estimates to the best of their knowledge.

Staff Averages By Company Size


FULL TIME EMPLOYEES NON-STAFF SUBCONTRACTORS

$0-250K 14

$250K-1M

$1M-5M

GREATER THAN $5M

7

15

60

$0-250K 15

$250K-1M

$1M-5M

GREATER THAN $5M

15

21

52

COMPANY SIZE BY 2015 REVENUE COMPANY SIZE BY 2015 REVENUE

In what business area did you add the most staff in 2015?

Operations 35%

Guides 13%

No additions in 2015 17%


Other 2%

Accounting 3%

Office Administration 5%

Marketing 9%

Sales 16%

What percentage of your organization's annual revenue is spent on payroll (excluding contractors)?


OF REVENUE SPENT ON PAYROLL

28%

Guide to Guest Ratio

HEADQUARTERS RATIO

AFRICA 1:6

ASIA 1:8

CENTRAL AMERICA / CARIBBEAN 1:9

EUROPE 1:9

MIDDLE EAST 1:8

NORTH AMERICA 1:8

SOUTH AMERICA 1:7


GLOBAL AVERAGE

1:8

Estimated percentage of trip cost per guest that remains in the local region.


OF TRIP COST REMAINING IN THE REGION

65%

Average estimated guest expenditure on local handicrafts or souvenirs.


SPENT PER GUEST (SHOWN IN US DOLLAR)

$145ATTA asked tour operators to estimate how much an average guest spends on local handicrafts or souvenirs.

Does your organization have an online reservation system that accepts credit cards?


Yes 47%

No 53%

%

What percentage of your bookings are completed online?*


BY REGIONAL LOCATION OF BUSINESS BY COMPANY SIZE IN 2015

AFRICA 24%

SOUTH AMERICA

$0-250K 42%

$250K-1M

$1M-5M

GREATER THAN $5M

31%

42%

34%

*Online booking means the entire transaction is completed using an automated system to select the trip, confirm availability and pay.

9%

28%

47%

48%

43%

5%

22%

ASIA

CENTRAL AMERICA/ CARIBBEAN

EUROPE

MIDDLE EAST

NORTH AMERICA

OCEANIA

EBITDA*


HEADQUARTERS 2015 2014 2015EBITDA MARGIN

2014EBITDA MARGIN

ASIA $318,000 $285,000 25% 24%

EUROPE $175,000 $132,000 10% 9%

NORTH AMERICA $283,000 $220,000 15% 13%

SOUTH AMERICA $326,000 $310,000 16% 15%

Regions not containing sufficient sample size are excluded from this chart. * EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization.

Revenue Outlook for 2016

HEADQUARTERS REVENUE OUTLOOK FOR 2016 COMPARED TO 2015

AFRICA +15%

ASIA +19%

EUROPE +19%

NORTH AMERICA +26%

SOUTH AMERICA +27%


Flat 22%

Down 8%

Up 70%

GLOBAL VIEW

Net Profit Outlook for 2016

HEADQUARTERSNET PROFIT OUTLOOK

FOR 2016 COMPARED TO 2015

ASIA +21%

EUROPE +33%

NORTH AMERICA +32%

SOUTH AMERICA +27%


Flat 23%

Down 12%

Up 65%

GLOBAL VIEW

Primary Factor Influencing Net Profit Projections Positively


NEW CUSTOMERS 34%

MORE REPEAT BUSINESS

21%

13%

9%

7%

4%

4%

NEW PRODUCTS ADDED WHILE CONTROLLING COSTS

ACCESS TO NEW MARKETS

CURRENCY EXCHANGE

NEW BUSINESS LINES ADDED

CRISIS IN ANOTHER REGION

OTHER

3%

2%

1%

DECREASED OVERHEAD

FEWER OR FLAT OFFERINGS WHILE CONTROLLING COSTS

OIL/GAS PRICES 1%

Primary Factor Influencing Net Profit Projections Negatively


FEWER NEW CUSTOMERS 31%

28%

14%

14%

7%

3%

3%

CRISIS IN MY REGION

INCREASED OVERHEAD

OTHER

INCREASED COMPETITION

CURRENCY EXCHANGE

LESS REPEAT BUSINESS

Customer Demographics


Age Traveler Type

Gender

51-60 25%

70+ 5%

28 and under 11%

29-40 19%

Male 47%

61-70 15%

41-50 25%

Female 53%

Couples 36%

Groups 32%

Families 16%

Solos 17%

Customer Demographics


HEADQUARTERS % FEMALE GUESTS

AFRICA 57%

ASIA 45%

EUROPE 53%

NORTH AMERICA 51%

SOUTH AMERICA 51%

Are you developing more itineraries to address the needs of:


Solo Travelers Family Multi-Generational

LGBT(Lesbian, Gay, Bisexual, Transgender)

Yes 42%

No 58%

Yes 17%

No 83%

Yes 72%

No 28%

Average Age of Clients

HEADQUARTERS AVERAGE AGE

AFRICA 49

ASIA 42

EUROPE 49

NORTH AMERICA 49

SOUTH AMERICA 45


GLOBAL AVERAGE CLIENT AGE

48* Regions not containing sufficient sample size are excluded from this chart.

What trend or trends do you see as most significant in driving product development in adventure travel, today?


GENERAL INDUSTRY TRENDS

View more trends in report appendix.

• “ADVENTURE TRAVEL IS ENTERING THE MAINSTREAM”

• “COMFORT/SAFETY/SECURITY TOUR OPERATORS OFFER TO GUESTS”

• “ZIKA VIRUS WILL AFFECT OUR BOOKINGS”

• “LAST MINUTE BOOKINGS”

• “ONLINE BOOKING”

MARKETING TRENDS

• “AGGRESSIVE MARKETING ATTRACTING NEW CUSTOMERS”

• “BLOGGING

• REVIEW-DRIVEN

What trend or trends do you see as most significant in driving product development in adventure travel, today?


ACTIVITY TRENDS

View more trends in report appendix.

• TREKKING

• CYCLING

• FOOD, BEER, UNIQUE GASTRONOMY

• CULTURAL EXPERIENCES

• COMMUNITY INTERACTION

• MOUNTAIN BIKING EXCURSIONS INCORPORATED INTO GROUP TOURS

THEMES

• CONSERVATION/WILDLIFE/ NATURE

• CULINARY TOURISM SHOULD BE, BUT CLIENTS NOT ASKING AS MUCH AS EXPECTED

• SAFETY AND SECURITY

• ECOLOGICAL AWARENESS

Regions of Increased Customer Interest


Increasing Interest

No Change

Decreasing Interest

Top Countries Clients Are BookingBy Company Headquarters


HEADQUARTERS #1 #2 #3 #4 #5 #6

EUROPE ITALY SPAIN FRANCE UNITED KINGDOM SOUTH AFRICA CHILE

NORTH AMERICA UNITED STATES ITALY PERU ECUADOR CANADA ARGENTINA

ALL REGIONS ITALY UNITED STATES INDIA PERU SPAIN ECUADOR

Itineraries of Changing Customer Interest How customer demand in 2016 compares to 2015


CUSTOM ITINERARIES

SOFT ADVENTURES

CULTURAL-BASED ADVENTURES

SHORTER DURATION OPTION TO EXISTING ITINERARIES

DOMESTIC AND/OR REGIONAL TRAVEL

FAMILY OR MULTI-GENERATIONAL

SELF/GUIDED

PHILANTHROPIC ACTIVITIES

“GREEN” TRAVEL OPTIONS

HARD ADVENTURES

Primary Focus of Guest Requests for Increased Customization % ranking each most important area of guest requests for customization


Completely customized trips 55%

Custom departure time 28%

Time within the planned itinerary for customized experiences

18%

hikingtrekking

WalkingCyclingCulturalbikingsafari

Rafting

wildlifeTours

CULTURE

bike

Photography

viewing

hike

sea

watchingvisits

touring

tubing

BearSafaris

NatureDiving

Riding

cruise

fishing

Tour

surfingskiin

g

Cruising

Horsewellness

Great

History

Bicyclingmultisport

Travelsnow

Group

Food

City

Yoga

MTB

Falls

Whitewater

Victoria

fly

tourism

Table

villages

sport

bait

Pole

South

germany

glacier

BICYCLE

Gorilla

TrekingBungee

Jumping

exchange

Snorkel

coast

Halfday

dogs

ride

balooning

cave

sledturtle

Day

inca

trail

kayak

Park

SCUBA

Dive

sail

loire

amalfi

Mull

english

mtn Vinson

Voyage

Mt

mountaineering

Motorcycling

visit

caves

road

marble

paragliding

patagonia

Philanthropy

luxury

Privaetly

Guided

provence

based

Land

Holidays

Drives

jeeps lam

anai

River

Arade

Balloon

AirHot

horseriding

Ski

Skye

driving

heli

naturecultural

gwaii

haida

boarding

mulitday

Snowmobiling

Grand

Sof

Galapagos

Spa

France

Experiences

wine

Teaching

Children

Traditional

uyuni

salt

flats

family

equestrianEcotourism

immersion

sicilian

volcanoes

cross

Lions

canoeing

canoe

Whale

camping

Bird

wild

life

atv

site

Archaeological

Animal

4x4

Top 2016 Activities Word Cloud


Top Ten Terms Used to Describe Preferred Activities: 1. Cultural 2. Hiking 3. Cycling 4. Eco-tourism 5. Trekking

6. Walking 7. Safaris 8. Locals 9. Birdwatching 10. Environmental

Top Activities Clients Are BookingBy Company Headquarters


HEADQUARTERS #1 #2 #3 #4 #5

AFRICA SAFARISENVIRONMENTAL

SUSTAINABLE ACTIVITIES

CAMPING ECO-TOURISM GETTING TO KNOW THE LOCALS

ASIA CULTURAL ACTIVITIES TREKKING CAMPING ECO-TOURISM VOLUNTEER TOURISM

EUROPE HIKING CYCLING WALKING TOURS CULTURAL ACTIVITIES TREKKING

NORTH AMERICA CYCLING CULTURAL ACTIVITIES HIKING ECO-TOURISM SNORKELING

SOUTH AMERICA CULTURAL ACTIVITIES ECO-TOURISM HIKING TREKKING WALKING TOURS

ALL REGIONS CULTURAL ACTIVITIES HIKING CYCLING ECO-TOURISM TREKKING

Marketing Budgets (US Dollars)


2015 AVERAGE 2014 AVERAGE CHANGE OVER 2014

BUDGET AS A PERCENT OF 2015

REVENUE

$170,000 $143,000 18% 6%

2015 Marketing Budget Detailed


2016 PERCENTAGE OF BUDGET

2015 PERCENTAGE OF BUDGET

PERCENTAGE OF 2015 GROSS REVENUE

AVERAGE DOLLAR AMOUNT

CONTENT CREATION (STORIES, PHOTOS, VIDEO) 16% 15% 0.6% $23,000

TRADE EVENTS 15% 16% 0.6% $22,000

SOCIAL MEDIA OUTREACH 13% 12% 0.6% $18,000

ONLINE ADVERTISING AND SPONSORED CONTENT 12% 14% 0.6% $17,000

SEARCH ENGINE OPTIMIZATION 10% 8% 0.5% $14,000

EMAIL CAMPAIGNS 9% 7% 0.4% $12,000

PUBLIC RELATIONS 6% 6% 0.3% $9,000

PRINT ADVERTISING 6% 8% 0.3% $9,000

CONSUMER EVENTS 5% 4% 0.2% $7,000

DIRECT MAIL 4% 4% 0.2% $6,000

SMARTPHONES AND MOBILE APPS 1% 0.5% 0.1% $1,000

Other Items in 2016 Marketing Budget


Includes:

Website Development

Partnerships/Partner Visits/ Partner Promotions

Roadshows

Sales Missions

Does your company have a documented safety and risk management plan?


Africa Asia

Yes 62%

No 18%

Yes 72%

Europe

Yes 75%

No 25%

Yes 65%No

35%

Yes 67%

No 33% Yes

69%

No 31%

North America South America

APPENDIX


• Women adventurers

• Aging travelers

• Being invited by friends, especially women

• Boomers want to be active

• Desire to try a new challenging activity, supervised by a professional

• Disposable income

• Desire for easy to moderate activities

• Families

• Solos


What trend or trends do you see as most significant in driving product development in adventure travel, today? Itinerary Trends

• Internet brings more informed travelers

• More use of social media and internet. Digital media and mobile technology

• Multi-generational

• Increasing number of Asian travelers and the need to adapt experiences to fit their cultural expectations and language needs

• Travelers are Trophy Collectors, not hunters. Less interested in: the journey, camping, off-line

• Less fear of travel in unstable areas


Top Activities Clients Are Booking By Company Headquarters - Other Demands

A • Adventure mix with luxury experience (good food and good night sleep)

• Authentic tourism experiences

• Canyoning

• Choosing lodging

• Climbing tours

• Combination of soft adventures with cultural explorations

• Combining sailing with other activities, such as whale watching

• Community based tourism

• Cooking - hands on cooking programs

C

• Encounters with local people Expedition Travel

• Fishing in Alaska Food and wine - meet the maker

• Food and Wine, pilgrimage Routes (point to point long distance walking)

• Glacier hiking

• Green woodcraft

• Heritage

• High Ropes Course

• Horse riding holiday combined with a cultural tour post ride

EF

G

H


Other Demands (continued)

I • Interactive authenticity

• Culture, Learning Activities, High-end camping experiences (glamping), Kayaking

• Monastic temples, monuments, daily excursion to local places on demand, lake view

• More creature comforts in a remote setting

• More people like to get involved in local activities instead of just looking at things

• Mountain biking

• Multi adventure/ mulitisport

• Mystical tourism

• Paragliding and hang-gliding

M

• Participative tourism sharing benefits and activities with local people

• Photography tours

• Qualified leaders/guides

• Rock Climbing and Ice Climbing Clinics

• Safaris

• Safety and security

• Service

• Shorter lead-time

• Skating on natural ice

• Small groups, private trips, winter trips

QRS

P


Other Demands (continued)

S • Special Interest Trips

• Specialist guides

• SUP, diving, hiking

• Surf

• Tailormade activities

• Trips to two or more countries

• Visits of social character (home for elders, orphanage, etc.)

T

• Walking in remotes places, mix of mountain and beaches..not just one type of environment

• Whale shark tours

• Wildlife viewing and photography

• Wildlife watching

• Yoga & Wellness

• Yoga, Soft adventure

W

YV

THANK YOU


update cover

update logo on every slide to 2016

INDUSTRY SNAPSHOT20 16

2016 Industry Snapshot - NCE Tourism · Every year since 2006 the ATTA has surveyed its growing...

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