Arival Insights: Attractions or Experiences

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Arival Insights: Attractions or Experiences (v2)

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© Copyright 2019 Arival LLC, All Rights Reserved
Attractions or Experiences?
A Snap Insight Deck from Arival

© Copyright 2019 Arival LLC, All Rights Reserved
Airbnb’s launch
of Experiences
has posed big
questions to the
in-destination
industry:

© Copyright 2019 Arival LLC, All Rights Reserved
Do travelers prefer traditional
tourist experiences (seeing the
famous sites and attractions)?
Or do they prefer “Airbnb-style”
experiences, such as peer-to-peer
tours, classes or activities?

© Copyright 2019 Arival LLC, All Rights Reserved
Do they want
This…
…or this?
Berlin TV Tower
Airbnb

© Copyright 2019 Arival LLC, All Rights Reserved
And does the rise of these new
”experiences with locals” spell
trouble for operators of traditional
tours and classic tourist attractions?

We asked 4,000 travelers from the U.S.
and Europe what they prefer:
© Copyright 2019 Arival LLC, All Rights Reserved

Do they prefer to:
See the famous sites
© Copyright 2019 Arival LLC, All Rights Reserved

or experience a
place with locals?
© Copyright 2019 Arival LLC, All Rights Reserved

© Copyright 2019 Arival LLC, All Rights Reserved
Arival’s 2019 State of In-Destination: 4,000 U.S., U.K., French & German travelers, August 2018; Icons by Flaticon.com
0%
20%
40%
60%
The results were
inconclusive. Seeing
the famous sites is a
little more popular,
but not by much.

© Copyright 2019 Arival LLC, All Rights Reserved
We also looked at the
survey results by age.
After all, is it not
younger travelers –
millennials and gen Z –
who are driving all of
the interest in new
types of experiences?

© Copyright 2019 Arival LLC, All Rights Reserved
So we tried something else.

© Copyright 2019 Arival LLC, All Rights Reserved
We worked with the terrific
analytics company Travel
Appeal to analyze reviews of
tours, activities and attractions. This is a great
company with
a great team.
Check them
out!

© Copyright 2019 Arival LLC, All Rights Reserved
Using Travel Appeal’s data aggregation
and analytics capabilities, we analyzed
reviews of more than 5,000 listings from
four major websites for the city of Paris
between 2017-2019.
Websites we analyzed:
Airbnb GetYourGuide
Expedia TripAdvisor

© Copyright 2019 Arival LLC, All Rights Reserved
Our hypothesis: we could identify
whether attractions or experiences are
more popular by analyzing the volume of
reviews for the different types of listings.
We identified 3,800 listings of tours,
activities and experiences across four
websites, as well as hundreds of
attractions.

© Copyright 2019 Arival LLC, All Rights Reserved
Here’s what we found for Tours,
Activities & Experiences:
Listing Type
Number of
Listings
Number of
Reviews
Tours, Activities
& Experiences
3,800 62,500
Insights based on TravelAppeal data and analysis of 5,000+ listings of tours, activities, attractions, events and points of
interest in Paris from Airbnb, GetYourGuide, Expedia, TripAdvisor, Viator between 2017-2019.

© Copyright 2019 Arival LLC, All Rights Reserved
Then we looked at attractions, and we
quickly realized we did not have to look
beyond the top three:
Eiffel Tower Notre Dame Louvre

© Copyright 2019 Arival LLC, All Rights Reserved
Those top three attractions had more
reviews than the other 3,800 listings.
Listing Type
Number of
Listings
Number of
Reviews
Tours, Activities
& Experiences
3,800 62,500
Attractions Top 3* 75,500
* Eiffel Tower, Louvre, Notre Dame
Insights based on TravelAppeal data and analysis of 5,000+ listings of tours, activities, attractions, events and points of
interest in Paris from Airbnb, GetYourGuide, Expedia, TripAdvisor, Viator between 2017-2019.

© Copyright 2019 Arival LLC, All Rights Reserved
What We Have Learned:
The major attractions drive tourism
and continue to be far more popular
than activities or experiences.
However, nearly half of travelers want
experiences with locals. In other
words, it’s not an “either/or.”

Travelers want both.
The question for each creator and seller of
experiences is clear: can you serve them?
© Copyright 2019 Arival LLC, All Rights Reserved

Get more insights like these about
the Best Part of Travel:
Tours, Activities & Attractions
Only at
© Copyright 2019 Arival LLC, All Rights Reserved

© Copyright 2019 Arival LLC, All Rights Reserved
Arival advances the business of creating
amazing in-destination experiences
through events, insights and community
for creators and sellers of Tours, Activities
& Attractions.
Our mission: establish the Best Part of
Travel as the major sector of the global
travel, tourism and hospitality industry
that it deserves to be.
www.arival.travel
www.arivalevent.com

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2. Strategic Issues Analysis (Internal and External) Using the relevant analytical tools, conduct an analysis of both the internal and external environment as presented in the case. - Relevant analytical tools can include PESTEL, SWOT, Stakeholder mapping, Porter's Competitive Forces Analysis, BCG matrix, strategic capabilities, strategic resource, positioning analysis, etc. "Nothing is a transaction. Everything is a transformation" (Chesky as cited in Ive, 2015). We are living in a world which is powered, to a large extent, by a shared economy. To view business as usual will no longer work. Airbnb's success story, what it has done and achieved, is not just a celebration of creativity - it is the very definition of game-changer. Company overview Avid travellers will know Airbnb, an online lodging rental platform. People can become a host on Airbnb by listing their spare rooms while travellers can search for their holiday locations and ideal accommodation. Brian Chesky and Joe Gebbia, both graduates of Rhode Island School of Design, founded AirbedandBreadfast in 2007 to rent out air mattresses and provide breakfast options in their apartment to visitors attending a design conference in San Francisco. They did so to pay for their own rental fees. The idea was to offer visitors a way to save some money by not having to pay prices charged by hotels. A concept totally unheard of in those days, they only managed to interest three guests. In 2008, they were joined by Nathan Blecharczyk, a computer engineer trained in Harvard who was also Gebbia's roommate before Chesky. Their initial intention was to target visitors at large-scale events and conventions, where hotel rooms were expensive and alternative accommodation was scarce. This effort produced a few thousand listings in 67 countries. Advertising on Facebook together with email campaigns worked well during the events. However, revenue dropped to a paltry sum at other times. In 2009, upon advice from Paul Graham, Founder of start-up incubator Y Combinator, Chesky and Gebbia went to New York City to gather feedback and learn from their successful hosts. After the visit, they revamped the website based on the experiences of these hosts and high-quality photographs of the apartments were added. This was in sharp contrast to the less professional-looking photographs common on websites such as HomeAway and TripAdvisor. They changed the company name from Airbedandbreakfast to Airbnb in 2010. The site's offerings were extended to include the rental of a variety of properties such as entire homes and apartments, private rooms, castles, boats, manors, treehouses, tipis, igloos and even islands. Business grew steadily and by 2011, Airbnb raised more than USD 7.2 million and acquired several of its competitors - Accoleo in 2011 and CrashPadder in 2012. In addition, the company acquired travel guides NabeWise and Localmind in 2012 which allowed it to provide localised information on various destinations. By .

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Arival Insights: Attractions or Experiences

3. © Copyright 2019 Arival LLC, All Rights Reserved Do travelers prefer traditional tourist experiences (seeing the famous sites and attractions)? Or do they prefer “Airbnb-style” experiences, such as peer-to-peer tours, classes or activities?

9. © Copyright 2019 Arival LLC, All Rights Reserved Arival’s 2019 State of In-Destination: 4,000 U.S., U.K., French & German travelers, August 2018; Icons by Flaticon.com 0% 20% 40% 60% The results were inconclusive. Seeing the famous sites is a little more popular, but not by much.

10. © Copyright 2019 Arival LLC, All Rights Reserved We also looked at the survey results by age. After all, is it not younger travelers – millennials and gen Z – who are driving all of the interest in new types of experiences?

11. © Copyright 2019 Arival LLC, All Rights Reserved Arival’s 2019 State of In-Destination: 4,000 U.S., U.K., French & German travelers, August 2018; Icons by Flaticon.com 0% 20% 40% 60% 18-34 35-54 55+ But there still were no clear trends for attractions vs. experiences. In fact, older travelers were more interested than younger travelers in “local experiences.”

13. © Copyright 2019 Arival LLC, All Rights Reserved We worked with the terrific analytics company Travel Appeal to analyze reviews of tours, activities and attractions. This is a great company with a great team. Check them out!

14. © Copyright 2019 Arival LLC, All Rights Reserved Using Travel Appeal’s data aggregation and analytics capabilities, we analyzed reviews of more than 5,000 listings from four major websites for the city of Paris between 2017-2019. Websites we analyzed: Airbnb GetYourGuide Expedia TripAdvisor

15. © Copyright 2019 Arival LLC, All Rights Reserved Our hypothesis: we could identify whether attractions or experiences are more popular by analyzing the volume of reviews for the different types of listings. We identified 3,800 listings of tours, activities and experiences across four websites, as well as hundreds of attractions.

16. © Copyright 2019 Arival LLC, All Rights Reserved Here’s what we found for Tours, Activities & Experiences: Listing Type Number of Listings Number of Reviews Tours, Activities & Experiences 3,800 62,500 Insights based on TravelAppeal data and analysis of 5,000+ listings of tours, activities, attractions, events and points of interest in Paris from Airbnb, GetYourGuide, Expedia, TripAdvisor, Viator between 2017-2019.

18. © Copyright 2019 Arival LLC, All Rights Reserved Those top three attractions had more reviews than the other 3,800 listings. Listing Type Number of Listings Number of Reviews Tours, Activities & Experiences 3,800 62,500 Attractions Top 3* 75,500 * Eiffel Tower, Louvre, Notre Dame Insights based on TravelAppeal data and analysis of 5,000+ listings of tours, activities, attractions, events and points of interest in Paris from Airbnb, GetYourGuide, Expedia, TripAdvisor, Viator between 2017-2019.

19. © Copyright 2019 Arival LLC, All Rights Reserved What We Have Learned: The major attractions drive tourism and continue to be far more popular than activities or experiences. However, nearly half of travelers want experiences with locals. In other words, it’s not an “either/or.”

22. © Copyright 2019 Arival LLC, All Rights Reserved Arival advances the business of creating amazing in-destination experiences through events, insights and community for creators and sellers of Tours, Activities & Attractions. Our mission: establish the Best Part of Travel as the major sector of the global travel, tourism and hospitality industry that it deserves to be. www.arival.travel www.arivalevent.com

Arival Insights: Attractions or Experiences

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