How technology is rapidly changing tours & activities worldwide. ITB etravel World 2018
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1 How technology is rapidly changing tours & activities worldwide ITB etravel World 2018
2 Lukas C. C. Hempel Founder bookingkit 2
3 Europe s leading all-in-one technology for activity providers Booking (IBE) Administration (ERP) Connection to sales channels (GDS) 3
4 bookingkit fascinated about digitizing the outdoor market Live since end of 2014 Based in Berlin More than 60 team members 4
5 Changing tourism landscapes Where is disruption happening right now?
6 Almost 80% of activity providers are not bookable online Flight Hotel Leisure 99% BOOKABLE ONLINE 78% BOOKABLE ONLINE < 21% BOOKABLE ONLINE? Source: PhocusWright Global Travel Activities : Tours & Attractions Come of Age (2017) 6
7 Why are activity providers not bookable online? Problem 1 Problem 2 ACTIVITY PROVIDERS: Administration happens manually SALES CHANNELS: No Global Distribution System (GDS) existing yet 7
8 Market potential: 129 bn US $ with 1,000,000 activity providers 129 bn US $ 56 bn US $ RoW Three times the size of the car rental market 36 bn US $ bn bn US $ Leisure business MARKET SIZE Source: PhocusWright Global Travel Activities : Tours & Attractions Come of Age (2017) 8
9 1,000,000+ activity providers waiting for digitalization.
10 Leisure market heats up: Tours & activities next megatrend Marriott invests in PlacePass marketplace Royal Carribean Cruises funds GoBe marketplace Airbnb launches Trips in Europe
11 The tours & activities industry Let s have a closer look at the providers!
12 910 They love what they do
13 They made their hobby their profession. 13
14 910 They care about a great customer 700 experience
15 910 They want to be out 700 of the office
16 910 They want to have many 700 customers
17 910 They don t enjoy the whole 700 administration
18 Status Quo Is technology already part of their working environment?
19 We all know those portals 19
20 and there is more DMOs and more 20
21 Status quo digitalization how providers currently work 21
22 Status quo digitalization how providers currently work 22
23 Status quo digitalization how providers currently work 23
24 Status quo digitalization how providers currently work 24
25 Status quo digitalization how providers currently work 25
26 Welcome back, 1950 s. 26
27 People use a variety of online and offline tools Pen & paper Excel Outlook Google Calendar Software Others 73% 15% 19% 19% 14% 14% 16% 28% 28% 73% Source: bookingkit study in cooperation with jollydays (2016) 27
28 Trends How can technology change a whole industry?
29 1 End customers come of age
30 End customers come of age They get more digital 30
31 End customers come of age They get more digital They get more market transparency 31
32 End customers come of age They get more digital They get more market transparency They get used to book online 32
33 End customers come of age They get more digital They get more market transparency They get used to book online Increased complexity for activity providers 33
34 The digital end customer - Strong shift to online payment 49% 58% 25% 36% Source: Internal bookingkit study (2017) 34
35 The digital end customer - Strong shift to mobile bookings 52% 41% 32% 21% Source: Internal bookingkit study (2017) 35
36 2 Experience platforms change
37 Experience platforms undergoing profound changes Voucher business shifts to direct bookings. Market is consolidating. Platforms start offering own experiences. 37
38 3 Professionalization on the supply side
39 Professionalization on the supply side Planned business models Increasing number of professional suppliers / serial entrepreneurs and planned business model. Online marketing Suppliers getting more professional in SEO, Adwords, Geo Targeting and others. Professional software Suppliers using professional software as the market is getting more complex. 39
40 Online marketing Using the Google potential 40
41 Online marketing Geo targeting in Facebook 41
42 4 Connection to travel agencies & DMOs
43 New possibilities for T&As Technology brings tours & activities to former isolated tourism sectors. Travel agencies DMOs 43
44 bookingkit announces partnership with Amadeus More information and demo at the Amadeus booth and bookingkit booth (hall 25, booth 137) 44
45 Current market trends End customers come of age Experience platforms change Professionalization on the supply side Connection to travel agencies & DMOs
46 Let s talk! Lukas C. C. Hempel Founder & Managing Director hempel@bookingkit.de
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