Riding the Wave: Capitalizing on the Surge in Water-Based Activities

As the adventure travel industry continues to evolve, staying on top of emerging trends is crucial for businesses looking to thrive. The latest insights from Arival research "The Outdoor Adventure & Activities Traveler" report shed light on what travelers seek in 2024 and beyond. This blog will highlight the surge in popularity of water-based activities and offer practical advice on leveraging this trend and other impactful insights shared in these findings.

Table of Contents

1. Key Trends and Insights
  1. Increase in Water-Based Activities
  2. Spending Habits Normalize
  3. Google and Word-of-Mount Referrals
2. Advice On How to Use This Info

Key Trends and Insights

1. Increased Interest in Water-Based Activities

Water-based activities are making a big splash among adventure travelers. According to the Arival report, nearly half of the activity travelers participated in water-based adventures in 2023. Activities like kayaking, paddleboarding, and river rafting are gaining popularity, providing an excellent opportunity for businesses to expand their offerings and attract more customers.

2. Guest Spending Has Normalized (Sort of)

Amid the pandemic, activity spending surged as travelers were eager to indulge in new experiences. However, post-pandemic inflation has slightly dampened consumer confidence, leading to a decrease in overall spending levels. Nonetheless, the average expenditure per activity still doubled compared to pre-pandemic levels in 2019. See chart below.

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With the average spend per activity being $300, there is still a strong demand for outdoor experiences.

However, inflation and rising demand allow for price increases, but higher prices also elevate customer expectations. Operators should still consider raising prices but must add value to the experience or offer tiered pricing options to meet different customer needs.

An additional notable shift to highlight is that travelers engage in more activities per trip, with the average number increasing from 3.5 in 2019 to 4.2 in 2023.

3. Importance of Google and Word-of-Mouth Referrals

Google remains the primary research tool for travelers, but word-of-mouth referrals are equally important. Encouraging satisfied customers to share their experiences and recommend your services can significantly boost your business.

Implementing referral programs that reward customers for bringing in new clients can help capitalize on this trend. Maintaining a strong online presence and encouraging positive reviews on Google and other platforms can also enhance your visibility and attract more bookings.

Flybook offers various ways to increase and prioritize your review generation collection. Read more on reputation management through review generation strategies and Flybook resources here.

Practical Advice for Businesses

While the insights from the Arival research may not delve profoundly into the inner workings of travelers' minds, they do provide valuable confirmation of assumptions we've observed in the post-pandemic landscape over the past few years. Based on our analysis of the data, here is the best advice we can offer:

With the surge in demand for water-based activities, having access to a water resource presents a prime opportunity to diversify your offerings. Explore the possibility of introducing new water-based experiences or elevating existing ones to cater to this growing trend.
When setting prices for your activities, it's essential to consider the average documented cost per activity ($300) while also keeping in mind that travelers are becoming less tolerant of price increases without added value. Ensure that you enhance the overall experience, regardless of any price adjustments.
If you haven't already established a referral strategy or focused on generating reviews, now is the time to do so. Word-of-mouth remains a potent tool for attracting new customers, and in today's digital age, social media and online reviews play a crucial role in spreading the word. Consider implementing a referral program that incentivizes customers to bring in their friends and family, amplifying your reach and building a loyal customer base.