Growth. In the past few decades, the commercial adventure tourism sector has continued to grow. Many cash-rich, time-poor, reasonably fit people now treat adventure activities as purchasable short-term holiday packages, rather than as lifetime personal investments in skills and equipment. This has led to expansion at both the low-skill and high-skill end of the adventure sector.

Product price pyramid. The adventure tourism industry includes a small number of very highly priced products which rely on specialized equipment, take place in remote areas, or require considerable prior skills, and a large number of short, low-priced, unskilled products in accessible areas close to major tourist gateways.

More luxury. The level of luxury available in adventure tours continues to increase. Backpacker buses are more comfortable. Wildlife heliski and diving lodges have spas and massage therapists. Dive boats, surfboats and heliski operations offer private charters with especially luxurious facilities. Expedition cruise boats have suites with satellite phones, and sometimes even a helicopter. It has almost become a truism that successful adventure tour operators continue to move up-market.

Adventure destinations. The number of tourist destinations marketing themselves specifically as adventure destinations, often using the term adventure capital, has increased greatly in recent years. Some of these are long-standing tourist destinations that have added new products or changed their marketing strategies. Others are small-scale destinations seeking to develop tourism through a portfolio of adventure products. Some also use adventure events as destination marketing tools. Adventure events are growing rapidly in number, scale and variety.

Amenity migration. In some areas, outdoor recreation opportunities and, to a lesser extent, commercial adventure tourism, have triggered amenity migration. This in turn has led to an increase in adventure tourism as the amenity migrants seek commercial opportunities to maintain their lifestyles.

Retail packaging. Many tour operators offer a portfolio of products at different destinations. They do not necessarily maintain an operational base at each of the destinations concerned. Most are retail packagers which sell a range of local tour products to an international clientele. There are also specialist tour operators which offer similar products or activities at multiple destinations.

Combination products. It has become commonplace for individual tour operators to offer a range of different adventure activities at a single destination. These are often packaged as a discounted bundle of individual tours, marketed as a “combo” product. Some combo products simply involve syndicated marketing, with on-ground activities operated by separate companies. Alternatively, a single company either buys up local competitors offering other activities, or acquires equipment, staff and permits to conduct similar activities itself.

Cross marketing. There is a strong trend towards increased cross-marketing links between adventure tourism products and other products purchased by the same consumers. These links are made through magazines, mailouts, inserts, Internet websites, television, films, fashion, shops and merchandising, mobile phones and music players, and entertainment venues such as nightclubs.

Exploratories. Many top-end adventure tourism companies now offer “exploratories” as well as routine tours. These are not necessarily first ascents, descents or traverses, but they are generally new itineraries, for that operator at least. The term is used both as a marketing device, to advertise adventure, and as a legal disclaimer, to warn clients that the trip may not necessarily run smoothly or according to plan.

Flexible itineraries. Other tour companies also make a virtue of necessity by advertising that their schedules or itineraries are flexible and that this is part of the adventure. This approach is used at both ends of the economic scale, from overland buses to polar expedition cruises.

Copycats and takeovers. Establishing a new adventure tourism product requires considerable investment in product development and marketing. Once a product has become well-known, other entrepreneurs often attempt to take over the operation, or establish copycat products at undercut prices. This is a particular risk for new products in developing countries. A number of examples are now well documented.

Insurance. Because of litigation, especially in North America, adventure tourism providers have become increasingly concerned over issues of potential liability. This has led to increasingly lengthy and complex pre-trip waivers and disclaimers, as well as much-increased insurance premiums. For some activities in some countries, it has simply driven many former providers out of the market. With reduced competition, remaining operators have increased prices so as to cover increased insurance costs. Liability-capping legislation, either general as in New Zealand or activity-specific as in some US states, is increasingly important for the future of the industry.

Source:

Buckley, R. (2006) Adventure Tourism, CABI, Oxford, [www.cabi.org].

Products and destinations

Online travel agencies will introduce service fees similar to those charged by conventional agencies.

• The gap in terms of the services offered by regular and low-cost carriers will widen.
• In addition to becoming more affordable, cruises will gradually turn into floating entertainment centres.
• There will be a proliferation of low-cost, short-stay/long-haul travel, i.e., a weekend in Europe or a week in Australia.
• Beach vacation destinations will be segmented according to specific consumer wishes: relaxation (no cell-phones), families only, celebrations or recreational activities.
• New destinations will appear on the world tourism stage, with Qatar replacing the Canary Islands, Ljubljana, Slovenia ousting Prague, Slovakia taking over from New Zealand and Brazil set to become the next mass tourism destination.
• Initially confined to adventure tourists, China’s Silk Road will become one of the world’s most popular destinations.

Clientele

• A new kind of “hybrid consumer” will emerge who – for example – will combine a low-cost flight and a gourmet dinner, a stay at a 5-star hotel and a fast-food meal, all in the same trip.
• As internet-users become more comfortable making online reservations, do-it-yourself travel and dynamic packaging will grow in popularity.
• Low-cost carriers will make increasingly aggressive efforts to reach business travellers.
• There will be a growing number of solo travellers making spontaneous travel decisions.
• The industry will have to adapt to the reality of an over-50 set that still wants to act young.
• Customers will want to go on a virtual tour of their vacation destination before they leave home.
• Better-informed travellers will be more demanding with respect to product quality and services.
• Travellers will become inured to crisis situations and will gradually become less affected by them.
• Personalization features will enable travellers to design packages that reflect their individual preferences.

Sources :
- Thomson. «The Thomson Future Holiday Forum», [http://www.hospitalitynet.org/file/
152001280.pdf], 2004.
- Jarrett, Ian. «Travel Weekly’s hottest news predictions for 2004», février 2004.
- IPK International. «World Travel Trends 2003-2004», 10 novembre 2003.

Study context

The main reason consumers have overwhelmingly adopted the Internet is that it enables them to shop 24/7 in the comfort of their home. However, there are a number of factors that differentiate Web user purchasing habits. For instance, those who purchase travel products online are influenced by the complexity of the product. Other important considerations include the ability to compare prices, discounts and a user-friendly interface.

With that in mind, experts have studied the relationship between the purchaser’s motivation to buy and the complexity of online travel products. Since Web expertise plays a significant role in this, consumers have been divided into expert users and novice users. The study aimed to prove that ease of navigation was the primary reason for variations in purchase decisions between online products.

Airline tickets, accommodation and car rentals are considered relatively simple travel products. All-inclusive trips, cruises and tours constitute more complex products.

In an attempt to simplify navigation, many sites have become “content aggregators” that offer one-stop shopping. This strategy has been extremely successful for such agencies as Travelocity and Expedia. Dynamic packaging, whereby Web users create their own package while retaining a certain degree of flexibility, have added a new twist to the tourism landscape.

Motivating factors for Web users

The study examined the top six factors that motivate consumers to make online purchases (see Tables 1 and 2). The factors are as follows:

1. The opportunity to earn points through a customer loyalty program. Some sites have even set up a special page for members to track their reward points (marriottrewards.com, for example).
2. The availability of the desired product.
3. Clear, detailed information that enables the user to make an informed decision.
4. A simple reservation process is a key factor in the online purchase decision. Especially in the case of more complex travel products, customers must be able to find the information they need to make a decision.
5. The reputation of the company or site’s banner, as this reassures the purchaser and may positively influence the outcome of the transaction. 
6. Consumers are more sensitive to the price of online products than they are to conventionally purchased products. This is partly due to aggressive advertising campaigns that have gradually led consumers to expect discount products.

The experts used data from a Canadian Tourism Commission study conducted in November 2001 that surveyed 1,161 Canadians and 1,145 Americans. Although Web user behaviour has admittedly changed since then, the study’s findings nevertheless constitute a valid basis for comparing and understanding travellers’ online purchasing habits, based on their experience with the Web and the type of product in question.

Behaviour varies according to sector

A user-friendly interface is a key factor in the decision to buy any kind of online travel product, regardless of the amount of Web user experience, leading experts to conclude that consumers want a simple reservation process. Competitive prices play a greater role in the purchase of less complex products, such as airline tickets, packages or car rental.

The quality and accuracy of the site’s information was a deciding factor for travellers looking for activities, events, tours, attractions and accommodation. Company reputation was less important to those making “simple” transactions -such as renting a car- compared to those purchasing more complex products. Finally, customer loyalty programs constitute a greater draw for expert users and mainly affect purchases of airline tickets, car rental and attractions.

Sources:
- Beldona, Srikanth, Alastair M. Morrison and Joseph O’Leary, “Online shopping motivations and pleasure travel products: a correspondence analysis,” Tourism Management, No. 26, 2005.
- Ham, Sunny, “The Use of the Internet for Hospitality and Travel-related Activities,” e-Review of Tourism Research (eRTR) [ertr.tamu.edu], vol. 2, No. 6, 2004.