Apr 13, 2021 / Livn PR

Opportunity for the Travel Industry to Innovate and Focus On Customer Experience

We deep dive into ‘The travel industry turned upside down’ report by Skift in partnership with McKinsey & Company to share insights on why the Tours & Activities sector will succeed in the future


Over the decades, travel had seen consistent growth even when financial crises and pandemics affected the global economy. The COVID-19 pandemic presented a different challenge, when in a matter of months, international mobility decreased by 65% due to COVID19.

International tourism arrivals worldwide with 2020 scenarios

Before the pandemic hit, tours and activities was one of the fastest-growing sectors in the travel industry. One of the reasons for this growth, was the significant interest it garnered from venture capitalists who invested $850 million in 2017, and it jumped to $935 million in 2018. This showed increased investment potential and excitement as well as trends driven by travellers.

Global T&A was attracting significant venture capital interest before the pandemic

Additional investment became a response to the increasing global travel trends. Unlike in previous years, travelling had become more affordable and was facilitated because of technology. Booking flights and hotels could be done with a few clicks, which spilled over into local tours and activities, allowing operators to offer products to book online.

The report gives five key insights on why the Tours & Activities sector will recover: 

How is the Tour & Activity sector responding? 

While remaining one of the fastest-growing sectors within travel, Tours & Activities was particularly hardest hit with the pandemic (bookings decline 85%, April 2019 vs. April 2020). Aside from the abrupt halt to international travel, a key factor for this decline was the nature of the sector focusing on group travel and bookings. 

Then again, there are many reasons for optimism in the sector:

Innovate to stay ahead of the curve

For Livn, innovation was vital to stay ahead of the curve. We asked ourselves how do we keep momentum and maintain real-time connection to our open connectivity hub of Tour & Activity. We then, focused on four factors:

Ability to adapt to key trends

Tour operators can adjust their products to cater to a smaller group or local travel for families. Health concerns have caused a decrease in activities with other people, but this provides an opportunity for family-friendly experiences to keep businesses going.

It has also seen the rise in domestic travel and searches for local experiences and makes these opportunities more attractive.

With tour operators adapting to the changes to meet the challenges, technology can help achieve growth. Travel companies, therefore, have an incredible opportunity to pivot their offering by either adding or operating these bookings more efficiently.

In the end, experiences are what moves travellers to travel.


Connect your business with a world of opportunities.

Latest News