The tourism and hospitality industry has had to evolve as customer preferences change. And while the experiences segment—for example, cruises and theme parks—accounts for an increasing share of total booking agency revenue, senior partner Caroline Tufft and coauthors find that this segment is fragmented and lacks a strong digital presence. To sustain growth, stakeholders can consider cross-selling unique experiences, unbundling deals, and implementing data-powered strategies.
Image description:
An area graph shows the total distribution of booking agency revenue, divided between experience-based holidays and accommodation-based holidays, from 2015 to 2023. In 2015, the distribution was 15% for experiences and 85% for accommodation. By 2023, both categories were evenly distributed, with 50% for experiences and 50% for accommodation.
Footnote: Changes in revenue classification over time in Form 10-Ks have been grouped as either accommodation or experiences for consistency. The experiences group includes 2015–17 nonhotel revenue, 2018–20 experiences and dining revenue, and 2021–23 TheFork and Viator revenue.
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To read the article, see “Six trends shaping new business models in tourism and hospitality,” May 29, 2024.