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Top 3 Takeaways From Arival 2023

Written by Celie Dagesse | Oct 27, 2023 6:25:36 PM

Flybook attended the 2023 Arival Trade Show in Orlando Florida. There were many exciting topics discussed however three (3) of them stood out among the rest and were all the buzz throughout the whole show.

Arival is an annual event where attractions, tour operators, and rental providers of all sizes convene to collaborate, learn and grow as providers. Members of the Flybook Team attended and found three (3) topics predominated in most of the conversations and the education settings. 

In this blog, we will discuss the three hot topics; AI, Today's Traveler, and Acquisition and Mergers

Table of Contents
    1. Top takeaways from the show
      1. All Things AI
      2. Today's Traveler is Changing
      3. Acquisitions and Mergers

1. Top Takeaways From Arival

If you haven't experienced the greatness of Arival yet, you're truly missing out on an extraordinary event. Arival is renowned as a global destination show for attractions, including well-known entities like Disney and other amusement parks, as well as tour providers, rental operators, and activity providers (just like you!). This incredible gathering brings together these industries to engage in fruitful discussions about business strategies, operational excellence, emerging industry trends, and most importantly, to delve deep into the mindset and preferences of the traveling guest who serves as a valuable customer for all these sectors.

The true essence of Arival lies in the remarkable caliber of its speakers and the invaluable insights they share about the industries they represent. During our attendance at the show this October (2023), three captivating topics emerged, resonating throughout the educational sessions and keynote presentations. Let's delve into the compelling knowledge that was shared.

 
1. Artificial Intelligence (AI)

Whether the topic had "AI" in the title like "Beyond Generative AI" or "Turbo Charge Your Team with AI" or it was a supplemental to the focus, AI was a term that was talked about again and again.

Now, I'm sure this isn't surprising. With OpenAi - ChatGPT being released just shy of a year ago everyone is looking to leverage this channel to decrease workload and increase productivity.

Some key takeaways we heard were:

  1. Use AI to create and edit imagery
    1. The world of art is going to be more and more accessible as we are able to ask AI to create images based on parameters we set (DALL-E, Imagen)
  2. Leverage AI to write your tour descriptions
    1. AI is really only as powerful as you are able to cultivate its knowledge. The recommendation here is that you need to give AI all of the added details that will help create an "irresistible" description that targets your guests. For example: "Write me a tour description that targets a family traveling from Atlanta and include all of this info (list essential details you know need to be shared about the tour), include these keywords (share top keywords you know rank in searches for your area). As AI provides answers you can refine with more and more granular information
  3. Website Chatbots Using AI are becoming a standard
    1. There were a variety of providers talking about their AI chatbot solution but one particularly stood out. TOMIS, a tourism company marketing agency has created a chat-bot that can directly integrate into your reservation software in order to help the guest find exactly what they are looking for through the chat function and checkout from that channel. TOMIS shared some stellar statistics of operators who are already using this feature and are seeing remarkable returns. 

FLYBOOK INTEGRATES WITH TOMIS TO SCALE YOUR MARKETING POWER - TOMIS AND FLYBOOK INTEGATION ANNOUNCEMENT

The key takeaway about AI is that it is a powerful tool that is often underutilized. It should not be seen solely as a means to generate content, but rather as a tool to summarize data, extract insights from content, and continuously improve. It is crucial to leverage AI now, even when its effectiveness may be limited, in order to be well-prepared to take full advantage of its optimal capabilities in the future.

 
2. Today's Traveler is Changing

In recent years, the tourism industry has experienced various fluctuations in traveler behavior, both during and after the COVID pandemic. To shed light on these changes, the team at Arival conducted surveys to gather updated statistics on the different types of travelers.

One significant finding that emerged from the research is the contrasting approach of older and younger travelers. Unlike older travelers who tend to make most of their purchasing decisions for experiences and activities at the destination itself, younger travelers (aged 18-35) are taking a more proactive approach by planning ahead.

In fact, nearly half (49%) of these young travelers are selecting their destinations based on the specific activities and experiences they hope to have. This shift in behavior presents a valuable opportunity.

To reiterate this shift, let's recap the previous and current traveler mindsets:

The previous way of travel involved selecting a destination and then exploring the available activities, experiences, or tours.

However, the new breed of travelers now prioritizes their desired activities, experiences, or tours and then seeks out the best destinations to fulfill those desires.

As we have highlighted in our previous blogs, the American consumer culture has evolved towards valuing experiences. People now seek to consume experiences and share them on social media, creating a significant opportunity for businesses in the tourism industry.

With this younger demographic becoming more prominent in the market and investing their money in experiences, businesses that offer the experiences they desire can influence their travel decisions. This shift necessitates a focused marketing approach that considers both the destination (for older travelers who may still be attracted to national parks or urban areas) and the unique qualities and value of the experiences offered. Simply relying on the appeal of the destination itself will not be enough in the future.

 

3. Mergers and Acquisition

The tourism industry has been attracting attention from investors and holding companies, especially with a generational shift occurring as many of the business owners who founded modern tour and activity outfitters are reaching retirement age. This transition seems to be a natural progression, but regardless of the reasons behind it, the fact remains that there are businesses and owners looking to capitalize on an exit strategy.

During the Arival event, several breakout sessions delved into the subject, offering attendees valuable insights and guidance on preparing to buy or sell. These sessions highlighted vital points that were widely shared, including:

  • Whether you are a new business owner or have been running your operation for two decades, it is crucial to have an exit strategy in place. Even if you have no immediate plans to leave the business, having an exit strategy can provide a clear vision and direction for your operation's future.

  • For entrepreneurs seeking to expand their presence in the tourism or recreation industry, it is advisable to explore alternative funding options. As one panelist wisely stated during a session, "Use your own resources to build your business, but when it comes to acquiring new ventures, leverage other people's capital." This approach allows you to strategically grow your portfolio and capitalize on opportunities for success.

Lastly, below are a few key takeaways of the things to look for both when acquiring and when selling:

  • Things to look at when acquiring.
    • Longterm proof of profitability.
    • An existing team is in place that can transition and continue running the business after the acquisition.
    • How can you strategically utilize debt to your advantage?
    • Who’s going to buy your business?
      • How are they going to pay for it?
    • Consider the level of certainty and weigh it against accepting a lower price versus a higher amount with no guarantee.
    • Consider the future of your company after the sale.
      • Are you concerned about the future of your business and the well-being of your employees after the sale?
    • Gain a solid understanding of your business's value and set realistic expectations for its future, as well as identify the advisors who will guide you through the process.
      • An attorney
      • Advisor with experience
      • Tax advisor

In conclusion, Arival 2023 provided an illuminating glimpse into the future of the tourism industry, where innovative concepts and transformative technologies are reshaping the way businesses operate and travelers engage with their experiences. The convergence of artificial intelligence emerged as a powerful force, promising not just efficient content generation, but deeper insights, improved customer engagement, and innovative solutions like AI-powered chatbots.

Understanding the evolving psyche of today's travelers is imperative; the shift from selecting destinations to prioritizing experiences requires a strategic approach that marries unique offerings with destination appeal. Moreover, the landscape of acquisitions and mergers is changing, with strategic planning, financial acumen, and a comprehensive understanding of one's business value becoming pivotal.

With the insights gained from this event, the industry is on the brink of an extraordinary era of innovation and a customer-centric approach, guaranteeing a dynamic and prosperous future for all of us involved.

STAY TUNED FOR UPCOMING BLOGS ON THE INDIVIDUAL EDUCATION SESSIONS FROM ARIVAL 2023

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