IN-DESTINATIONWhat Matters Most to Travelers

The State of

POWERED BYPREPARED BY

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ABOUT ARIVALArival advances the business of creating amazing in-destination experiences through events, insights and community for creators and sellers of tours, activities and attractions.

Our mission: Establish “The Best Part of Travel” as a crucial sector of the global travel, tourism and hospitality industry.

ABOUT THE NATIONAL COUNCIL OF ATTRACTIONS AND EXPERIENCES The National Council of Attractions and Experiences (NCAE) represents nearly 800 U.S. Travel members in organizations as diverse as national parks, iconic landmarks, shopping centers, entertainment venues, world-class attractions and sightseeing tours.

Our mission: Enhance the effectiveness of the individuals and organizations who participate by providing them with research tools, educational opportunities and meaningful connections.

METHODOLOGY In August 2018, Arival undertook a comprehensive study to provide insights on the in-destination experience to help creators and sellers of attractions, activities, events and tours understand key trends and drivers around traveler behavior. Arival fielded an online survey to 1,000 adult travelers (18+) from each of the following markets: France, Germany, the United Kingdom and the United States. The respondents from each market took a trip 100+ miles from home that included an overnight stay and a qualifying in-destination experience within the past year. The following analysis relates to those travelers who traveled within or to the United States (U.S. domestic and international inbound).

National Council of Attractions and Experiences (NCAE) is committed to producing relevant, one-of-a-kind research products that leverage the collective strength of the attractions and experiences industry. As part of this value proposition, NCAE has collaborated with Arival on a unique, four-part study about traveler attitudes and behaviors. This is the first of the four reports, and it presents an overview of the in-destination sector and its customers. As you read this report, you will:

LEARN about travel and tourism’s third-largest sector and understand its extraordinary diversity.

OBTAIN essential insights on in-destination travelers, and what they value.

LEARN the role attractions and experiences play in travel decisions.

IDENTIFY collaboration opportunities for experience providers and destination marketers to improve visitor experience and drive more in-destination spend.

ABOUT THIS

REPORT

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TABLE OF CONTENTS

Chapter 1: Defining the In-Destination Sector

Chapter 2: Defining the In-Destination Traveler

Chapter 3: The Impact of Attractions & Experiences on Trip Planning

Chapter 4: It’s What Matters Most

Chapter 5: DMOs & Local Partners Play a Role inIn-Destination’s Success

Case Study: Explore Charleston & Bulldog Tours

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CHAPTER 1DEFINING THEIN-DESTINATION SECTORWhat do visiting the Smithsonian, hiking Angel’s Landing in Zion National Park, enjoying Disneyland, getting spooked on a ghost tour of Savannah, taking in Boston’s Freedom Trail sites, visiting the San Diego Zoo and attending Coachella have in common? They are all examples of things travelers do on their leisure trips in the United States. More importantly, they are all part of “The Best Part of Travel”: the in-destination industry.

ACTIVITIES AND EXPERIENCES

ATTRACTIONS

EVENTS

TOURS

The most expansive category includes outdoor adventure, participatory sports, casual recreational activities, classes, wellness practices and other experiences.

This category focuses on ticketed attractions such as museums, amusement parks, zoos and more.

This category encompasses performing arts, sporting events and other cases where the traveler is a spectator.

This category includes guided day tour experiences of all sizes and modes of transportation.

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THE IN-DESTINATION INDUSTRY CAN GENERALLY BE ORGANIZED INTO FOUR CATEGORIES:

Travelers have myriad options for how they can spend their precious vacation days while on leisure trips—and there are currently over 100 distinct types of activities that make up the in-destination sector. With the continued growth of “experiences,” where anyone can offer a unique tour, opportunity or adventure for travelers, the sector will only continue to add activity types. While each has its own distinct characteristics (whale watching tours differ significantly from a museum visit, for example),

The in-destination industry of travel comprises all the things travelers do on their trips that do not entail getting to or from a destination (transportation), meals, independent shopping or lodging. The sector, which includes activities, attractions, events and tours, represents the third-largest and fastest-growing category of the travel industry.

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The businesses within these categories are powered by operators, providers of experiences who own and operate the tours, activities, attractions, events and other in-destination activities.

Each of these four main categories of the in-destination industry can be further divided into various subcategories. For example, the attractions category includes amusement, adventure and water parks, museums, zoos, aquariums, historic or cultural sites, observatories and natural attractions (such as a national park). Of the four main categories, the activities sector has the most sub-categories, and tours can be categorized either by mode of transportation or size. The below chart highlights the diversity of the in-destination industry.

Unlike the other major sectors of travel, such as airlines and hotels, the in-destination sector is extremely fragmented. The breadth of offerings in this sector creates both opportunities and confusion for travelers and in-destination operators. Travelers have the ability to cultivate a unique experience in their destination, but they also must find providers they trust. Operators have the ability to capture market share, but they also must find ways to stand out within their destination’s crowded marketplace.

* Arival has identified more than 100 types of business categories. These represent select major subcategories.

THE MANY BUSINESS CATEGORIES* OF THE IN-DESTINATION INDUSTRY

Amusement, adventureor water park

Hiking/mountaineering Golf Music performances Sightseeing Bus or motorcoach

Museum Camping/backpacking Tennis FestivalsTour of a specific museum

or historic siteCar or van

Zoo or aquarium Hunting/fishing Yoga Theater Culinary or food tour Walking

Historic or cultural site, monument or landmark

Road biking, mountain biking, cycle tour

Spa or wellness Dance or ballet Shopping or market tour Boat

Observatory Snorkeling/scuba diving Culinary classesProfessional/collegiate 

sporting eventsBeer, wine or

drink-related tourMotorcycle or off-road/

all-terrain vehicle

Natural wonder or attraction

Above-water sports (sailing, kayaking, etc.)

Art classesArt, music, photography or

cultural tourBicycle

Surfing Shopping excursions A tour with a “local” Segway

Safari, wildlife viewing, bird watching, etc.

Outdoor activities(zip lines, mini golf, etc.)

Active tour (hiking, cycling, kayaking, etc.)

Air (plane, helicopter,hot air balloon)

Climbing or cavingWinter activities

(skiing, ice skating etc.)Nature or eco tour

Horseback ridingRacing event (marathon,

Tough Mudder, etc.) Organized multi-activity

multi-day tour

Off-roading, ATV, snowmobiling

ATTRACTIONS

ACTIVITIES TOURS

ADVENTURE

EVENTS

RECREATION STYLE MODE

SOURCE: Arival’s 2019 State of In-Destination

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DEFINING THEIN-DESTINATION TRAVELERThe in-destination experience is defined by what travelers do on their leisure trips, including the attractions they visit, the events they attend, the tours they take and the activities in which they partake. Flights, lodging and meals are not part of this sector.

And who exactly is the in-destination traveler? The answer is simple: everyone! For example, while on a trip to the United States last year, nearly all leisure travelers surveyed from the U.S., U.K., France and Germany:

It’s also important to note that in-destination travelers are having multiple in-destination experiences on their trips. In fact, the average leisure traveler to the United States has a whopping six in-destination experiences during a single vacation (and sometimes more). Travelers are visiting multiple attractions, partaking in different activities, going on tours and attending events on a single vacation—all of which help contribute to an enriching, memorable tourism experience that can spark them to return again and again.

This is positive news for operators, as it shows that the pool of potential customers is wide. This indicates that in-destination activities are an integral component to leisure trips.

Booked a tour Attended an event Visited an attraction Participated in an activity

THE PERCENT OF TRAVELERS WHO ENGAGE IN TOURS,ACTIVITIES, ATTRACTIONS OR EVENTS

97% 97% 97%98%Leisure Traveler: Took a trip within the past year at least 100 miles from home that included an overnight stay.

SOURCE: Arival survey: 1,007 U.S., U.K., French & German travelers (U.S. In-bound), August 2019

CHAPTER 2

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European travelers to the U.S. outpace U.S. domestic travelers when it comes to the consumption of in-destination experiences. European travelers in the U.S. are having, on average, over two more in-destination experiences on their trips. This is partly because a U.S. vacation is a long-haul journey for the European traveler, while many domestic trips for U.S. travelers are short getaways. Europeans also tend to benefit from more generous company vacation policies.

This is great news for operators within the in-destination industry. Not only are almost all leisure travelers potential customers, but also they have multiple chances to win new business. These travelers are not content with visiting just one attraction or doing only one activity while on vacation. Rather, travelers seek a bounty of experiences to deepen their connection to various locales (hello, food tour!) and infuse a hefty dose of fun into their trip. Operators, therefore, have multiple opportunities to invite travelers into their attraction or experience throughout the duration of their vacation and play a defining role in the quality of their time as they enjoy their chosen destination.

THE AVERAGE NUMBER OF EXPERIENCES BOOKED BY TRIP

AVERAGE TOTAL EXPERIENCES:

5.4 7.8 7.38.9

6.7SOURCE: Arival’s 2019 State of In-Destination:

1,007 U.S., U.K., French & German travelers(U.S. In-bound), August 2019

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Since almost every leisure traveler has multiple in-destination experiences on their trips to the United States, it is not surprising that the sector would play a prominent role in the overall trip-planning process. All four categories of the in-destination sector factor heavily into the planning process for trips to the U.S.

Of the four categories, attractions have the biggest impact on the overall planning process. Over half of all travelers say that attractions, from the Grand Canyon to the Empire State Building, are very or extremely important when planning a trip.

Plans to visit U.S. attractions rank as particularly important to European travelers: two out of three travelers from the U.K., France and Germany report that attractions are extremely or very important in their overall trip planning process.

When travelers embark on planning their next vacation, they earmark the attractions and experiences that will make their vacation most noteworthy, unforgettable and interesting. The in-destination industry has ample opportunity to provide traveler experiences that are worth writing home about—or at least worth posting on Instagram.

ATTRACTIONS AND EXPERIENCES ARE VERY IMPORTANT IN TRIP PLANNING FOR MORE THAN HALF OF TRAVELERS

ATTRACTIONS

EVENTS

TOURS

ACTIVITIES

The Importance in Overall Trip Planning by Activity

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SOURCE: Arival’s 2019 State of In-Destination: Active travelers: US – 574, UK – 169, FR – 137, DE – 127; August 2019

20%

21%

17%

17% 31%

34%

28%

32%

CHAPTER 3THE IMPACT OF ATTRACTIONS & EXPERIENCES ON TRIP PLANNING

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ACTIVITIES AND EXPERIENCES ARE WHAT TRAVELERS REMEMBERMemory of Trip Components, All Markets

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ACTIVITIES

TOURS

LANDSCAPE/SCENERY

MEALS

ATTRACTIONS

LODGING

EVENTS

FLIGHTS

33% 39%

40% 35%

34%

36%

24%

24%

38% 37%

22%

36% 37%

18%

40%39%

Tours, activities and attractions aren’t just what travelers consider while planning their trip to the U.S. They’re also what people remember most when reminiscing about their vacation. Ask travelers how their trip was, and chances are they won’t tell you about their flight or rental car. They’ll tell you what it felt like to view a pod of humpback whales on a sailboat in San Francisco Bay or explore Austin’s hidden BBQ joints by bicycle.

Almost three-quarters of travelers remarked that what they remember most about their trip is their in-destination experience or the landscape/scenery of the destination visited.

IT’S WHAT MATTERS MOST

SOURCE: Arival’s 2019 State of In-Destination: Active travelers: US – 574, UK – 169, FR – 137, DE – 127; August 2019

CHAPTER 4

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Travelers do not just recall their in-destination experiences at a higher rate; they’re also far more likely to memorialize their attraction, tour and activity experiences than most other aspects of their trips. Travelers are taking more pictures of attractions and experiences than they are of the people they met or even the food they ate—the ultimate litmus test of traveler happiness. In many instances, such images are widely shared on social media, which fuels further tourism to certain locations and attractions.

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The experiences provided by the in-destination industry matter most to travelers; they’re the essence of what travelers share with family and friends upon return.

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DMOS & LOCAL PARTNERS PLAY A ROLE IN IN-DESTINATION ACTIVITIES’ SUCCESSThe in-destination sector is a vital part of a destination’s success. Almost every vacation in the U.S. includes multiple in-destination experiences. It is responsible for the traveler’s engagement and their positive association with a destination more so than any other part of travel.

How do operators capture their fair share of this important but extremely fragmented marketplace? Travelers have potentially hundreds of options from which to choose their travel experience. They could visit a museum on their own, go on a guided tour of major attractions, hike in a national park, go to the zoo or attend a sporting event. As a result, operators are competing with each other as they seek to win one of the six in-destination experiences a traveler will have.

However, most tours, attractions and activities within a given destination are multi-dimensional and can include numerous destination touchpoints. For example, in addition to showcasing an area’s cool local taco truck scene, a food tour operator may also show visitors their city’s outdoor art galleries, which in turn boosts the location’s reputation as a vibrant, interesting place to visit. Leveraging all of the tours, activities and attractions a destination has to offer helps drive traveler trip-planning decisions even before they get on a plane. This makes operators powerful potential marketing partners. The combined efforts can better show what a certain city, region or town within the U.S. has to offer.

DMOs and CVBs can help facilitate these unique cooperative marketing opportunities for operators. Rather than attempting to market their destination on their own, operators engage their DMOs and CVBs to help them get the word out about their business. This allows operators to focus on marketing their specific in-destination experience, and ensures that every traveler leaves a destination happy and hoping to return.

CHAPTER 5

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John LaVerne, founder of Bulldog Tours in Charleston, South Carolina, says the joke around his office is that he and his team are a bunch of cheerleaders for Charleston. Now in its 18th year of operation, Bulldog Tours is a leading operator in the area, running up to 12 food, ghost and history tours every day for nearly 100,000 people per year. The ghost tours are most popular, as they guide visitors through the city’s spookiest dungeons, cemeteries and jails. Part of LaVerne’s success can be attributed to the close relationship he has with the local CVB, Explore Charleston.

“We have 800+ members ranging from hotels to restaurants to tour companies.” “There are a variety of services and ways people can work with us, and the folks who take advantage of this are the ones who benefit most,” says Perrin Lawson, vice president of business development for Explore Charleston. Lawson adds that LaVerne is an active participant with the visitor’s bureau. “I believe the reason John has benefited so much from the relationship with us is because he’s trying to lift up the destination. He understands when the destination thrives, by extension, so does his company,” says Lawson.

For example, when Lawson receives media requests by reporters on assignment to write stories about Charleston, Lawson frequently reaches out to tour operators who not only express interest in hosting media, but also who follow through with providing a specialized, polished experience.

LaVerne is quick to accept media guest invites. While the tour is complimentary for journalists, the press coverage LaVerne receives from participating in media tours pays off. Bulldog has been mentioned by national publications such as Forbes, The New York Times, The Travel Channel, USA Today and more. “This is advertising that I could never afford in a million years,” says LaVerne.

CASE STUDY:EXPLORE CHARLESTON & BULLDOG TOURS

JUMP AT THE CHANCE

LaVerne agrees. “I’ve realized that since day one: whatever I can do to promote Charleston is going to be good for Bulldog Tours, and that has paid off in spades.”

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Explore Charleston also bolsters tour operators like Bulldog Tours by researching traveler demographics and values by season, which enables LaVerne to have a deeper understanding of his clientele. This helps him cater tours to key customer segments and better construct advertisements. In the summertime, for example, visitors often come with their families to relax by the beach; during the spring and fall, they are more likely to be interested in house and garden tours. During the winter months, festivals, conferences and larger group meetings are more popular.

From connecting the local tourism community through meetups and networking events with wedding planners and concierges to booking referrals from the CVB’s website (Bulldog Tours is prominently featured under the Tours & Attractions tab of charlestonCVB.com), LaVerne says there are endless benefits to his business from partnering with Explore Charleston. But ultimately, the tour operator-CVB relationship is rooted in helping elevate the entire Charleston destination. “Getting everybody on the same page and fired up about the destination? That’s gold,” says LaVerne.

ACCEPT MEDIA EXPERIENCES. If your local DMO reaches out to see if you’re interested in sharing your tour or attraction with journalists on assignment, jump at the opportunity. You’ll likely have to offer your experience as complimentary (travel writers will expect this), but a possible mention in their story will serve as excellent advertising for your business.

ATTEND DMO EVENTS. Many DMOs and CVBs offer local networking events that are designed to connect you with others in the tourism industry, such as conference coordinators, wedding planners and concierges. Apart from building community, getting your product on the radar of key people who make decisions about visitor activities can lead to more bookings down the road.

DMO DATA

4 KEY TIPS FOR TOUR AND ATTRACTION OPERATORS TO LEVERAGE THEIR DMO

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UPDATE DMOS ON PRODUCT OFFERINGS. DMOs and CVBs are always looking for unique activities, experiences and attractions to help the destination stand out from the competition. Bulldog Tour’s Haunted Pub Crawl, for example, highlights Charleston’s history, showcases local establishments and features local brewers and distillers in the area, making it a prime tour for Explore Charleston to feature. This is as easy as sending the DMO a quarterly email.

VOLUNTEER! Are you a whiz at SEO? Are you the most-requested tour guide at your attraction? Work with your DMO to develop a free class on your area of expertise for local members. More of an introvert? Help check-in attendees for the monthly meet-up. Giving back at local events will help show the DMO you’re engaged, responsible and interested in the work of bolstering the destination.

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Tours, activities, attractions, events—these are the experiences that drive so much of leisure travel and tourism. These are the things travelers remember, the things they talk about with their friends when they get home, the things they share on social media. This paper, the first in a four-part series from NCAE and Arival, provides key metrics experience operators can use to promote their industry to their destination marketing and industry partners.

The next papers will delve into the changes in traveler wants and expectations around the experiences they seek, the planning and purchasing process for tours, activities and attractions and the major changes in technology and distribution that are transforming our industry.

THE FOUR IN-DESTINATION INSIGHTS PAPERS FROM NCAE AND ARIVAL:

THE STATE OF IN-DESTINATION

WHAT YOUR CUSTOMERS WANT

THE PATH TO PURCHASE

THE STATE OF DIGITAL IN-DESTINATION

CONCLUSIONWHAT’S NEXT FOR THEIN-DESTINATION INDUSTRY