travel industry competitors

$1.2 Trillion US Travel Industry Is Plummeting, Says New Study

(Bloomberg) -- Plagued by ongoing staffing shortages, visa delays and even political division, the US travel industry has lagged competitors in reclaiming its share of international visitors since the Covid-19 pandemic. By the end of 2023, the sector reached just 84% of 2019 visitation levels, according to the US Travel Association.

Now, a first-of-its kind study from Euromonitor International , whose findings were first released to the public on Jan. 11, sheds additional light on how much the US is trailing its global competitors. Commissioned by US Travel, the independent market research firm’s study analyzed 18 countries’ travel industry performance—including France, the UK, Italy, Canada, Spain and South Africa. It examined data across four categories: government leadership and its engagement with the travel industry (25% weighting); global perception (20%); identity and security, which includes visa wait times and expedited clearance programs for low-risk travelers (35%); and travel connectivity, which includes international arrivals and flight access (20%).

The result: Across all categories and among 18 countries, the US came in at No. 17. The top performers were the United Kingdom and France.

China’s travel industry ranked last, at No. 18. This comes as less of a surprise given China’s long-delayed tourism restart; air routes heading there still remain thin . Surpassing the US in overall tourism industry performance were countries such as 13th-ranked Saudi Arabia, whose tourism economy remains nascent , and Turkey, which came in third despite political tensions and natural disasters over the past year. The study confirms that the American travel industry is less modern and efficient than its competitors—both established and up-and-coming—said US Travel , a nonprofit organization that advocates on behalf of the country’s travel sector.

Read More: Visa Delays, Divisive Politics Dampen US International Travel Recovery

“This should be a wake up call. To see the US ranked 17 in a list of 18 top travel markets is eye-opening, stunning, disheartening,” said Geoff Freeman, chief executive officer of US Travel , during a press call detailing the results of the study. “It's the type of thing that should force people on Capitol Hill to ask some very important questions.”

Freeman emphasized that the US share of the global tourism market has declined since 2019, while competitors are managing to increase theirs.

The grim findings from Euromonitor International, initially completed in fall 2023, were not published until now. They were revealed by US Travel as the motivation for creating a new Commission for Seamless and Secure Travel, which it also announced on Jan. 11. The commission, whose first official meeting will take place on Feb. 1, is chaired by Kevin McAleenan, former acting secretary of Homeland Security. It counts 12 private sector and government experts (with more to come), including former leaders at the Department of Homeland Security, the Transportation Security Administration, and US Customs and Border Protection, along with former US ambassadors.

The group will be tasked with hearing out tourism stakeholders that represent the various segments of US Travel’s membership, such as major hotel executives, small business owners, and airline and airport operators. Then it will create solutions for policymakers to modernize US travel across the board and to tackle issues that plague the industry. So far, Euromonitor’s study has helped identify several areas to prioritize, US Travel said, including customs, TSA passenger screening and visa processing. A set of recommendations will be submitted by the fall, Freeman tells Bloomberg in an interview.

At stake is the stability of America’s travel economy, which in 2022 amassed $1.2 trillion in spending from both international and domestic visitors. According to a separate report from market research firm Tourism Economics published in December 2023, failing to improve TSA’s outdated screening process could cause US travelers to forgo as many as 3 million domestic trips annually, resulting in a loss of $7.4 billion in spending this year. Another $150 billion could be lost over the next 10 years due to ongoing excessive wait times for visas, it noted.

When asked on the call where Freeman expects to find the funding to overhaul US travel, he pointed to the revenue that visitors bring—including the taxes they pay on accommodations and shopping. It’s a formula other countries have used to modernize their tourism industries, he noted.

“We are lacking the conviction to deal with these issues, to make travel a priority,” Freeman said, adding that he’s hopeful things will change.

6 Ways To Stand Out Among Competitors in the Travel Industry

Add a Cause to Your Services

Attach a story to your business, find your own travel niche, be passionate and knowledgeable about what you do, offer something unique.

The COVID-19 pandemic has put the travel industry on hold. In the years before 2020 , the industry was growing at a rapid pace globally. But with all the restrictions and travel bans, the whole industry suffered terrible losses.

The good news is that the whole industry is taking this time to perfect their services and prepare for when things get back to normal. Currently, the entire sector is working hard on improving their tech solutions to provide a better experience to their guests.

It’s about adding new digital solutions and differentiate themselves to s tay one step ahead of their competition . This has always been important and will remain after the pandemic comes to an end.

So, how can companies differentiate from competitors? We have collected a few pieces of advice and ways to take action . Check the text below to find out more.

People worldwide are becoming more conscious about the environment, social issues, animal rights, and other humanitarian causes. They want to help in any way they possibly can and have respect for companies that want to give back .

For example, if you are organizing tours in nature, you should consider allowing your guests to plant trees or engage in some activity that helps preserve nature. Another good example that any type of travel business can do is give a portion of all their earnings to projects that promote sustainability , or better, sustainable tourism.

No matter what you do, make sure to share how your business helps others and what causes you are fighting for. This can easily be the difference between someone choosing your services over another company. At the same time, this helps you build positive word of mouth and potentially get free press for your efforts .

Stories bring your business closer to customers. We’re not talking about marketing or selling your products or services directly. Your story showcases the core of your brand and lets guests connect emotionally to your brand or the services you provide.

A good story contains three essential ingredients :

The challenge helps you attract people’s attention and make them want to check out what you have to say. The second part of the story serves as an emotional journey that attaches people to the story. In the end, the solution to the story allows you to promote your services, brand, or your cause.

It allows you to call people to action in a subtle way . Your story can revolve directly around your business and why it exists, what drives you, and what your motivations are. On the other hand, the stor y can put your guests in the position of protagonists who can help a cause.

55% of customers say that they are more likely to get product/service if they love the story of the brand.

The whole travel industry is quite saturated. There are thousands of businesses in different sectors that offer similar services and look alike. It’s impossible to stand out in this crowd, especially now when many companies have already established their presence.

This is why you need to come up with your travel niche and offer something specialized. This might look like you’re limiting yourself to a narrower crowd, but it gives you the ability to reach more people whose needs haven’t been met. Check out this amazing list to get a better understanding of this subject.

If you are looking to generate real leads for your travel business, this article will help you do so in your travel niche.

Think outside the box and see the problems that people are facing, how you can make their travel easier, save their money, give them the luxury they need, or a type of service that still doesn’t exist. On the other hand, you can also approach the niche by targeting a specific demographic like students, women, or families.

Every new guest, traveler, or client is an opportunity for you to showcase your knowledge and passion for travel. No matter if you’re a guide that’s talking about history, nature, wildlife, or architecture, or you are a travel agent looking to present new offers, you need to immerse yourself in what you do.

This is why you should ideally start a travel business that focuses on something you love doing. People will recognize this about you and your organization and connect with you on an emotional level. At the same time, you will find it easier to learn vital information and help travelers in any way possible.

Running a business is hard work, but you will find it a lot easier if you’re passionate about it. At the same time, this level of commitment, knowledge, and passion will make your business memorable and stand out from the rest. Entrepreneurship always comes with some risks. If you want to know the most common ones in the travel industry and how to solve them, you should look at this article .

You probably heard it many times “create a unique brand.” But what does this mean when it comes to the travel industry? The first thing you need to know that the focus has shifted from “activities” to “experiences.”

Give your guests something they haven’t felt, done, or seen before. These experiences are what they will remember for a long time and share with other people. These experiences don’t have to be unique, but they can be delivered in a new way.

For example, you can offer a sightseeing tour in nature on dirt bikes. Add something fun, unorthodox, and exciting to your services; people like trying out new things, especially travel enthusiasts.

Think about what’s unique in your area of work and how you can promote that side of your service. This will make you memorable and distinctive in the sea of typical travel companies that only recycle the same experiences.

Last but no least, pay attention to your digital reputation. Apart from having a well-designed and functional website, you should also focus on social media and encite your audience to find out more about your services via several social media channels. Finally, don’t forget to keep an eye on your reviews .

In the end, remember to care about your clients. Make them feel safe during their whole experience and positive in your ability to help them out and deliver on what’s promised. After all, the travel industry is about people and giving them something to remember.

Work on your communication skills and care about your guests. The industry is constantly evolving, even now during the pandemic. Keep up by educating yourself, and it will reflect on the services you provide.

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Ido, graduated from the College of Management Academic Studies, is Hotelmize Sales Operations Manager. He has a demonstrated history of working in the Sales & Marketing industry, and is paving his path in the Travel & Tourism industry. His skills in Negotiation, Interpersonal Relations, Team Management, Customer Service, and Sales Management, makes him a strong Sales Manager and a team player in the Travel Industry

Mize is the leading hotel booking optimization solution in the world. With over 170 partners using our fintech products, Mize creates new extra profit for the hotel booking industry using its fully automated proprietary technology and has generated hundreds of millions of dollars in revenue across its suite of products for its partners. Mize was founded in 2016 with its headquarters in Tel Aviv and offices worldwide.

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January 12, 2023

Featured Guest

Tony Capuano CEO, Marriott International, Inc.

Chip Rogers President & CEO, American Hotel & Lodging Association (AHLA)

As COVID-19 restrictions have continued to ease, the travel and hospitality industries have seen a resurgence in customers. Companies like Marriott have seen percentage increases in revenue and rate, even topping pre-pandemic levels.

During the U.S. Chamber of Commerce’s 2023 State of American Business event, Chip Rogers, President and CEO of the American Hotel and Lodging Association , and Tony Capuano, CEO of Marriott International, Inc. , sat down for a fireside chat. Read on for their insights on the post-COVID state of the travel industry, a shifting customer base, and the outlook for 2023 and beyond.

2022 Demonstrated the Power and Resilience of Travel

After declines amid the pandemic, 2022 brought about a positive recovery for the travel industry.

“[2022] reminded us of the power and resilience of travel,” said Capuano. “If you look at the forward bookings through the holiday season, [you’ll see] really strong and compelling numbers … so we’re really encouraged.”

“The only caveat I would give you about that optimism is, as you know, the booking windows are much shorter than we’ve seen them in a pre-pandemic world,” he added. “So those trends can change more quickly than we’re accustomed to."

The ‘Regular’ Customer Segments Are Shifting

At the start of pandemic recovery, industry leaders believed leisure travel would lead travel recovery, with business travel closely behind and group travel at a distant third, according to Capuano. While some of those predictions have held, others have shifted.

“Leisure [travel] continues to be exceedingly strong, and group [travel] has surprised to the upside,” he explained. “Business travel is perhaps the tortoise in this ‘Tortoise and the Hare,’ slow-and-steady recovery.”

However, Capuano noted customer segments are becoming less and less strictly defined.

“[There’s] this trend we've seen emerge over the pandemic of blended trip purpose … [where] more and more folks are combining leisure and business travel,” he said. “If this has staying power, I think it’s absolutely a game changer, as we get back to normal business travel and hopefully maintain that leisure travel.”

To accommodate this shifting demand, Marriott has focused on expanding offerings to accommodate both the business and leisure sides of travelers’ trips.

“[We’ve had] a very big focus on [expanding bandwidth], so that if [we’ve] got 300 rooms full of guests on Zoom calls simultaneously, we’ve got the bandwidth to cover it,” Capuano added. “[We’re also] being more thoughtful about fitness, leisure, and food and beverage offerings — and having the flexibility to pivot those offerings as somebody sheds their business suit on Thursday and changes into shorts and flip flops for the weekend.”

2023 Offers Hope for Continued Growth in the Travel and Hospitality Sectors

As the travel and hospitality sectors continue to grow and shift in the post-pandemic era, Capuano shared reasons for optimism in 2023.

“Number one, it's our people,” he emphasized. “When you see their passion, their enthusiasm, their resilience, their creativity, and just how joyful they are to have their hotels full again … it's hard not to be filled with optimism.”

“If you look at how far the industry has come over the last few years,” Capuano continued, “any lingering doubts folks may have had about the resilience of travel — and about the passion that the general public has to explore cities and countries — it's hard not to be excited about the future of our industry.”

Post-Pandemic Work

From the Series

State of American Business

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Analysis on global competitiveness of american travel.

REPORT January 11, 2024

The U.S. is falling behind in the race to grow and modernize travel.

While the U.S. remains the world’s most desired destination for travelers, it ranks only third in visitation. While top global competitors are fully recovered from the pandemic and increasing market share, the U.S. is only 84% recovered and its market share has declined (from 5.4% in 2019 to 5.3% in 2023).

U.S. Travel Association commissioned Euromonitor International, a global research firm, to assess U.S. competitiveness against 17 other top countries for global travel so U.S. officials—and private sector partners—can better understand how to improve the overall travel experience, increase U.S. competitiveness and ultimately grow U.S. market share.

The study compared the 18 markets (including the U.S.) across four categories:

National Leadership
Brand and Product
Identity, Security and Facilitation
Travel and Connectivity

The findings are a wake-up call : Overall, the U.S. ranked 17 out of 18 countries analyzed—second to last. The U.S. notably underperformed in the categories of National Leadership and Identity, Security and Facilitation .

The U.S. is hindered by self-imposed barriers: Restrictive visitor visa policies and lengthy wait times, a lack of federal leadership and coordination, outdated security screening practices and decades of underinvestment prohibit the U.S. from reclaiming its spot as the top visited destination in the world—costing the U.S. economy billions in lost visitor spending and impeding future growth.

Our response: On January 11, U.S. Travel launched a solutions-oriented Seamless and Secure Travel Commission—which will bring together former government officials and private sector executives—to identify policy recommendations that can be realized in the near term. The commission will also establish a 10-year vision to create a more seamless and secure travel experience, outlining ways the federal government can work with the travel industry on opportunities to enhance the travel process and facilitate growth.

Seamless and Secure Travel Commission Members:

Kevin McAleenan , Former Acting Secretary of Homeland Security; Former Commissioner & Deputy Commissioner, U.S. Customs & Border Protection (Commission Chair)
Stewart Baker , Former General Counsel, National Security Agency; Former Assistant Secretary for Policy, Department of Homeland Security
Seth Stodder , Former Assistant Secretary for Borders, Immigration, & Trade Policy, Department of Homeland Security
John Sanders , Former Acting Commissioner & Chief Operating Officer, U.S. Customs & Border Protection; Former Assistant Administrator, Chief Technology Officer, Transportation Security Administration
Patty Cogswell , Former Deputy Administrator, Transportation Security Administration
John Pistole , Former Administrator, Transportation Security Administration
Martha Bárcena Coqui , Former Mexican Ambassador to the United States
Lucy Chadwick , Former Director General, International, Security & Environment Group, U.K. Department for Transport
Michael Huerta , Former Administrator, Federal Aviation Administration
Shawn Kinder , Global Corporate Development and Strategy Director, Ferrovial Airports
John Holland Kaye , Former CEO of Heathrow Airport

Read the full release .

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Meet the 17 changemakers shaping the future of the travel industry

2020 has upended the travel industry and challenged travel professionals to reexamine how their companies operate.
Business Insider has identified 17 travel professionals who are shaping the future of the travel industry.
We define a changemaker as someone who has anticipated changing traveler needs and has either pivoted their business or created a new one to adapt to the new normal.
Our inaugural list of travel changemakers includes top executives at Delta, Airbnb, and Tripadvisor, as well as small business owners and startup founders.
Do you know a travel changemaker? Please email [email protected] and [email protected] with tips.
Visit Business Insider's homepage for more stories .

2020 has fundamentally upended the travel industry.

Between the pandemic, which brought international travel to a standstill earlier this year, and questions of racial justice brought to the forefront by the Black Lives Matter movement, the events of this year have challenged travel professionals to reexamine how their companies operate.

Even as countries begin to ease border restrictions and destinations reopen their doors to travelers, hotel occupancies remain at year-over-year lows . Travel giants have furloughed or laid off hundreds of thousands of employees to adjust to financial realities.

But with every fundamental shift comes innovation. Based on nominations and our own research, we have identified 17 changemakers who are shaping the future of the travel industry, either by pivoting their business, creating a brand new one, or anticipating changing traveler needs.

From executives at multinational companies to startup founders, meet the people on Business Insider's inaugural list of travel changemakers.

Catherine Powell, Global Head of Hosting for Airbnb

Initiative: Airbnb Online Experiences

When Catherine Powell joined Airbnb in January as head of Airbnb Experiences, the program touted 50,000 host-led tours, classes, and other offerings across 1,000 countries. Two months later, the pandemic hit the United States.

In late March, Airbnb paused the program for the health and safety of hosts and guests, but Powell was undeterred. On April 9 , her team rolled out Airbnb Online Experiences, a new platform allowing hosts to connect with travelers virtually.

Six months after program launch, Airbnb now offers upwards of 700 online experiences, which earned hosts over $2 million from launch through July. Airbnb reported that within that time period, the hosts of " Sangria and Secrets with Drag Queens " ($31 per person for 90 minutes) made $350,000 alone.

"Since launching, we've continued to find ways to empower communities deeply impacted by COVID-19 shutdowns," Powell told Business Insider. "Online Experiences are providing vital economic opportunities for Olympian and Paralympian athletes, chefs, and Broadway artists."

Powell, who was appointed Global Head of Hosting in July to oversee a unified hosting organization across Homes and Experiences, has continued to expand the program's offerings. In the last week of September, Airbnb launched " Field Trips ," a collection of 75 online extracurricular experiences designed for parents and children. The collection includes experiences hosted by shark scientists and astronomers, among other experts, which range in price from $7 to $100 per hour.

In the coming weeks and months, Powell says she will focus on building out tools for hosts to rebuild their businesses.

"For me, listening has been incredibly important. I have spent a lot of time listening to our guests and our hosts to really understand the needs and desires on both sides," she told Business Insider.

Caitlin Zaino von During, CEO and Cofounder of Porter & Sail; Deepak Shrivastava, Cofounder and CFO/COO at Porter & Sail

Initiative: Hotel Credits by Porter & Sail

In 2014, Caitlin Zaino and Deepak Shirvastava launched Porter & Sail, a digital concierge app that partners with luxury hotels to offer hotel guests services such as keyless entry and early check-in.

When the pandemic hit and hotel occupancies dropped to record lows, their business turned on its head.

"Contracts were canceled and our revenue was fully wiped out within a week. We did not know how we would survive," Zaino von During told Business Insider.

Over a period of 24 hours, their team pulled together a new business model. On March 17, they launched "Hotel Credits," an ecommerce system that allows travelers to purchase hotel stays at a discount. Credits can be redeemed up to two years out from the purchase date.

Hotel Credits started out with three hotels and has grown to a collection of 150 independent hotels across five continents and over 20 countries. The program has driven over half a million dollars worth of redeemable room nights for hotels since launch, according to analytics reviewed by Business Insider. "In the earliest days, we were the only source of cash flow for some of our hotel clients," Zaino von During said.

In the beginning, Porter & Sail didn't take commissions from Hotel Credits, but as the team has developed its product and hotels have reopened, they have converted to a commission-based structure. Porter & Sail is developing a feature that will allow purchase credits that aren't specific to one hotel, but can be used for any hotel or on their site.

"If we wanted to continue to survive, we had to build for what we knew was true right now," Zaino von During told Business Insider with regard to Porter & Sail's business pivot. "We also knew we had to invent the future of travel in order to own it."

Beth Santos, CEO and Founder of Wanderful; Karisma Shackelford, Director of Wanderful Creators

Initiative: Wanderful's "Moving Forward: An Anti-Racism Townhall for the Travel Industry" series

Over the past 11 years, Beth Santos has grown Wanderful from a blog dedicated to helping women travel safely into a global community that hosts events for over 45,000 female travelers, travel influencers, and travel professionals worldwide.

In this time, Santos has seen the industry become more inclusive of women, but she still considers it far from perfect. "Many of these experiences still focus very heavily on the experience of white women, disregarding our many intersectionalities of race, age, body type, sexual orientation, and beyond," she said.

When the Black Lives Matter movement gained momentum in the spring, Santos sat down with Karisma Shackelford, the founder of Color Me World , who works part-time developing programming for Wanderful content creators. The two brainstormed ways to discuss the movement with their members at a time when much the industry remained silent.

Within weeks, they launched Moving Forward: An Anti-Racism Townhall for the Travel Industry . The three-part virtual series created a platform for Black creators, allies, and brands to discuss actionable steps to foster anti-racism in the travel industry. Over 200 members and industry representatives attended the first session.

Santos and Shackelford have planned two additional town halls for October 17th and early 2021. They have also launched an anti-racism reading club and a new sub-community for members called BIPOC Women of Wanderful. Next year, the company plans to launch a global hosting network so women and gender-diverse people have safe and trusted spaces to stay in when they travel.

"This awakening and empowering time that we are in is demanding change, and those that don't change will find themselves going out of business like Blockbuster did back in 2010," Shackelford told Business Insider.

"Wanderful has always been at the forefront of discussing topics that others often felt was too challenging to address. This is one of the reasons why I have always loved this community, and Beth, the courageous and badass woman who leads it," Shackelford said. "Society has habitually silenced women and people of color, and Wanderful has always given a voice to the disempowered."

Yannis Moati, CEO and Founder of HotelsByDay

Initiative: HotelsByDay

Booking a hotel room by the hour once had seedy connotations. But nowadays, as travelers seek increased flexibility and safe, affordable staycations , the concept is becoming more popular.

Enter: HotelsByDay , a booking platform for day-use hotel rooms.

Yannis Moati founded HotelsByDay in 2015, launching initially in four cities: New York City, Chicago, Philadelphia, and Washington, DC. HotelsByDay now partners with hotels and allows users to reserve blocks of hours, with three-hour block minimums. And while Moati, a 20-year hospitality industry veteran who currently serves as the company's CEO, wasn't the first to come up with the idea — Day Use Hotels , for one, launched in 2010 in Paris — nor the last , HotelsByDay remains among the most prominent booking services of its kind, largely thanks to its quick booking platform.

"Hoteliers understand that 'business as usual' is over and we'll never get back to it," Moati told Business Insider. "The future of hospitality resides in unlocking flexibility in the otherwise rigid legacy business model."

During the pandemic, Moati's company has helped hoteliers maximize the revenue potential of what they call "dayroom inventory" — the combination of unsold rooms from the night before and early check outs the day following. Moati told Business Insider that HotelsByDay initially offered just one service (dayrooms), and now is able to offer customers the option to book working lounges, meeting rooms, coworking desks, day-use pool passes, and day-use parking passes.

Moati told Business Insider that HotelsByDay, recently nominated for the Travel & Hospitality Awards' Technology & Innovation category, has seen an increase in new hotel partner sign-ups by over 400% since the coronavirus unmoored the hospitality industry earlier this year.

Kanika Soni, Chief Commercial Officer at Tripadvisor; Lindsay Nelson, Chief Experience and Brand Officer at Tripadvisor

Initiative: Tripadvisor "Safe Travels" search tools

After weeks of lockdown measures, destinations in Europe and the US began lifting measures in May and June as coronavirus rates fell. Though domestic tourism became an option, travelers were faced with the overwhelming task of sorting through varying health and safety guidelines.

To help travelers sift through a sea of information, Lindsay Nelson and Kanika Soni launched Tripadvisor's " Travel Safe " suite of tools on June 24. The first initiative of its kind among competitors, the Travel Safe toolkit included the ability for businesses to display health and safety measures on their pages, a filter for travelers to look up participating businesses, and a Q&A function that allows travelers and businesses to connect directly through Tripadvisor.

Since launch, over 100,000 businesses have opted into the Travel Safe program, and hundreds of thousands of travelers use its suite of tools per month, according to Tripadvisor analytics reviewed by Business Insider. The company also reported that click-through rates to hotel and business detail pages have increased 16% since the program's launch.

Looking ahead, Nelson and Soni plan to expand the rollout of the Travel Safe program to more businesses and to integrate it with the Tripadvisor mobile app.

Both Nelson and Soni told Business Insider that being flexible and embracing the unknown has helped them succeed as leaders during this time. "Break the rules. Evaluate your company and brand's strengths and truly unique assets, and explore ways to create new revenue streams," Nelson told Business Insider.

How you communicate with your team goes a long way, Soni told Business Insider. "I love the phrase 'bounded optimism' — something I've always been guided by," she said. "Every day I strive to show up for my team with calm and compassion, acknowledging the uncertainty while attempting to reframe a difficult situation as a learning experience and a chance for innovation and positive change."

Joel Holland, Owner of Harvest Hosts

Initiative: Harvest Hosts

The Harvest Hosts membership program, which costs $80 a year , allows RVers to stay overnight for free at over 1,600 farms, wineries, breweries, distilleries, golf courses, museums, and other small businesses all over North America.

"Our mission is to help people live happier lives by getting off the couch and onto the open road, while also supporting small businesses that are the backbone of our country," owner and CEO Joel Holland told Business Insider of his company, which currently has 15 employees.

Holland reports that business crashed 80% when the virus outbreak initially gripped the US in March. But rather than scaling back the business, Holland boosted ad spending on Facebook. According to screenshots shared with Business Insider, Harvest Hosts' total Facebook ad spending topped $1.25 million between March 1 and September 30.

Holland's bet on a surge of interest in RV travel proved to be a smart one. New membership bottomed out on April 3, Holland told Business Insider, when Harvest Hosts logged only 18 new members. But membership reached an all-time high on August 26, when 1,336 new members signed on.

Holland believes that the burst of RV interest won't dissipate even after the pandemic is controlled. "We believe road-based travel will continue to be the predominant form of travel through at least 2021," he told Business Insider.

Pat Miller and Tom Brussow, Cofounders of The HUB Social Network

Initiative: The HUB Social Network

When travel came to a standstill in the spring, veteran travel agent Tom Brussow looked around for resources on how to advise clients in a world of travel restrictions. He didn't find what he was looking for.

In August, Brussow partnered with Pat Miller, a broadcast journalist turned small business consultant, and launched The HUB, an off-Facebook social network for travel agents and suppliers. Through The HUB, members gain access to a social dashboard where they can interact with each other via a public feed or direct message and access daily and weekly programming broadcasts.

Miller is currently hosting a weekly "Path to Prosperity" brainstorming series focusing on rebuilding consumer confidence and leveraging promotional sales. The HUB team is also piloting a "Destination Community" feature where destination representatives answer questions for agents. Costa Rica's community feature has already been built, with Los Cabos, Puerto Vallarta, Las Vegas, Hawaii, and the Lomas Travel Group scheduled to be completed by the end of 2020.

"The travel industry will return but to get to that point, agents and suppliers will have to communicate and build their businesses back together," Brussow told Business Insider.

Right now, membership consists of two-thirds travel agents and one-third suppliers, Miller told Business Insider. Brussow and Miller aim to grow their membership numbers to 1,000 by the end of 2020. Membership plans start at $19.99 per month.

"The pent-up public desire to travel is immense and as soon as the public opinion and health conditions warrant it, the travel industry will explode. The smart agents and suppliers are the professionals that are expanding their network, obsessively staying connected to their customers and improving their baseline capacity for doing business," Brussow said.

Ed Bastian, CEO of Delta Air Lines

Initiative: The Delta Air Lines CareStandard and Global Cleanliness division

Air travel has been one of the hardest-hit sectors in hospitality amid the pandemic. Many companies were forced to drastically reduce service, lay off employees en masse, or shutter entirely . Airlines that stayed in business needed to figure out a way to win back the trust of air travelers. Few have done this as effectively as Delta Air Lines, and that's largely thanks to the leadership of Ed Bastian.

Bastian, a 22-year veteran of the travel industry, assumed his role as Delta's CEO in 2016. This year, Bastian implemented a series of safety measures to keep customers and Delta employees safe. The result, the Delta CareStandard, is informed by healthcare and disinfection expertise from CVS Health, Mayo Clinic, Emory Healthcare, Quest Diagnostics and Reckitt Benckiser Group/Lysol. The more than 100 safety measures implemented as part of the CareStandard include blocking off middle seats and limiting capacity on flights, mask requirements both onboard and at the gate, an overhaul of cleaning procedures (including a 44-point cleanliness checklist ahead of every flight), and back-to-front boarding in order to support social distancing.

Bastian's team has currently been tasked with deploying technologies to keep surfaces and the air onboard clean, and with developing a clean audit program to ensure safety measures are being upheld consistently.

Bastian says that customer satisfaction has never been higher. "Delta's Net Promoter Score (NPS) — the measurement used to determine how likely customers are to recommend Delta — has been setting records since March 2020 and saw a new record high in August 2020," he told Business Insider.

Now predicting a three-year recovery period — and acknowledging that Delta will need to become a smaller airline in 2021 than it was in 2019 — Bastian says that recovery will depend on customers feeling comfortable traveling. And for that reason, the airline will continue to invest in its long-term commitment to clean .

Marilyn Markham, Director of Product Strategy at American Express Global Business Travel; James Griffin, Director of Risk, Compliance and Environmental, Social & Governance (ESG) at American Express Global Business Travel; and Cedric Lamielle, Senior Director of Travel Product Engineering at American Express Global Business Travel

Initiative: American Express Global Business Travel Travel Vitals™

When the coronavirus pandemic brought the travel industry to a halt this winter, corporate travelers had to figure out a way to navigate international trips in the safest way possible.

American Express Global Business Travel (GBT) stepped up its offerings as a result.

GBT is a travel management solutions and services company working with corporations and employees to coordinate corporate travel. Its 18,000 travel professionals across over 140 countries are tasked with managing $35 billion of business travel annually, according to company literature. In response to the pandemic, GBT launched Travel Vitals™ , a "travel briefing platform" that serves as a one-stop resource for all of the travel restrictions and relevant information business travelers need to know before embarking on a trip.

"I went back to basics to understand the new needs and expectations [travelers] have of travel agencies," Marilyn Markham, GBT's Director of Product Strategy, told Business Insider. "I found the greatest need was for accurate information to help them decide whether it is safe and practical to travel in this climate and how to prepare adequately."

According to James Griffin, GBT's director of Risk, Compliance and Environmental, Social & Governance (ESG), Travel Vitals™ grew out of the company's internal COVID-19 Response Team, which tracked coronavirus rates globally as the outbreak began to take hold. "We quickly realized the value of making that information available externally in a single, easily accessible location and began posting it daily to the GBT website," Griffin told Business Insider.

While this tool was created specifically in response to the coronavirus pandemic, GBT realizes its utility for business travelers in the future. Per Cedric Lamielle, the senior director of travel product engineering for GBT, part of the company's innovation will be to make the platform a standard tool for travelers seeking information about visa requirements, travel advisories, and specific geographical areas' risks.

Sarah Dusek and Jacob Dusek, Cofounders of Under Canvas

Initiative: Under Canvas

Under Canvas was founded in 2009 by Sarah and Jacob Dusek, making it one of the first major glamping — high-end, glamorous camping — companies. Under Canvas has glamping sites near a number of national parks and other landmarks, including Acadia National Park, the Grand Canyon, Yellowstone, and Mount Rushmore.

While Under Canvas was founded over a decade before the coronavirus pandemic hit, the team has worked to make outdoor travel an even safer and more appealing option. This includes a number of operational enhancements made in an effort to boost customer confidence, from streamlined check-in/out processes and rigorous sanitation of shared spaces to mandatory staff masking, limited and socially distanced dine-in seating, and an array of on-the-go food and retail options for visitors.

Today, Sarah, who was Under Canvas' original CEO and currently serves on its board of directors, reports that the company has over 500 employees and nine locations. Like other outdoor travel-focused businesses, Under Canvas has seen a surge of interest as travelers increasingly opt for more socially distancing-friendly vacations.

"I believe the future of travel will be outside for the foreseeable future. The need to be out in nature has never been more acute, to do that safely, with ease and comfort has never been more necessary," Sarah told Business Insider.

Under Canvas is focusing on expanding its offerings while remaining focused on sustainability. Its current environmentally conscious initiatives include low-flow toilets, auto-turn off faucets, and pull-chain showers at all camps, and the use of solar power wherever possible.

A Joshua Tree location is among those new outposts coming soon, as Under Canvas continues it expansion.

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The Travel & Tourism Competitiveness Report 2019

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Travel and tourism recovery: a perspective for South Asia and lessons for other regions in the age of COVID-19

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Differentiating Your Travel Agency from the Competition

Discover effective strategies to set your travel agency apart from competitors in the ever-growing industry.

In the highly competitive travel industry, it is essential for travel agencies to find ways to differentiate themselves from the competition. By understanding the competitive landscape, defining a unique selling proposition (USP), enhancing service offerings, building a strong brand identity, and implementing effective marketing strategies, travel agencies can stand out in the market and attract more customers.

Understanding the Competitive Landscape in the Travel Industry

To differentiate your travel agency, it is crucial to have a comprehensive understanding of the competitive landscape in the travel industry. Research and analyse the market to identify your main competitors and their strengths. By studying their strategies and offerings, you can gain valuable insights and develop strategies to set your agency apart.

When it comes to the travel industry, competition is fierce. With so many travel agencies vying for customers' attention, it's essential to stay ahead of the game. Understanding the competitive landscape is like having a map that guides you towards success. It allows you to navigate through the challenges and make informed decisions.

One way to identify your main competitors is by conducting thorough market research. Look at other travel agencies operating in your target market and analyse their target audience, pricing, services, and marketing efforts. By understanding who you are up against, you can determine how to position your agency uniquely.

But it's not just about knowing who your competitors are. It's also about understanding their strengths. What sets them apart? Do they offer exclusive travel packages? Do they have a strong online presence? Are they known for their exceptional customer service? By studying their strategies and offerings, you can gain valuable insights that will help you develop your own competitive edge.

Identifying Your Main Competitors

Identifying your main competitors is the first step towards differentiation. However, it's not enough to simply know their names. You need to dig deeper and understand what makes them successful. What is their unique selling proposition? How do they attract customers? What are their strengths and weaknesses?

Take the time to research each of your main competitors individually. Visit their websites, read customer reviews, and observe their social media presence. This will give you a better understanding of their brand identity and how they position themselves in the market.

Additionally, consider attending industry conferences and networking events. This will not only give you a chance to meet other travel professionals but also provide insights into the latest trends and innovations in the industry. By staying connected and engaged, you can stay ahead of the competition.

Analysing Current Market Trends

Another aspect of understanding the competitive landscape is being aware of the current market trends. The travel industry is constantly evolving, with new destinations and travel preferences emerging all the time. To stay relevant, you need to keep an eye on these trends.

Stay informed about emerging destinations that are gaining popularity among travellers. Is there a new hotspot that everyone is talking about? By being the first to offer travel packages to these destinations, you can attract adventurous customers who are looking for unique experiences.

Consumer preferences also play a significant role in shaping the competitive landscape. Are travellers becoming more interested in sustainable tourism? Do they prefer all-inclusive packages or personalized itineraries? By understanding these preferences, you can tailor your offerings to meet the demands of the market and offer unique experiences to your customers.

Furthermore, technology is transforming the way people travel. Keep an eye on the latest technological advancements in the industry, such as virtual reality tours or mobile apps for seamless travel experiences. By embracing these innovations, you can stay ahead of the competition and provide your customers with cutting-edge solutions.

In conclusion, understanding the competitive landscape in the travel industry is vital for the success of your travel agency. By identifying your main competitors and analysing current market trends, you can develop strategies that set you apart from the crowd. Stay informed, be innovative, and always strive to provide exceptional experiences to your customers.

Defining Your Unique Selling Proposition (USP)

To differentiate your agency, it is crucial to define a clear and compelling USP that resonates with your target audience. This sets your agency apart from competitors and communicates the unique value you provide to customers.

When it comes to travel agencies, the market is crowded with countless options. From large, well-established companies to small, niche agencies, customers have a wide range of choices. So how do you make your agency stand out? The answer lies in your USP.

A USP, or Unique Selling Proposition, is a statement that defines what makes your agency special and why customers should choose you over others. It is the core message that sets you apart and captures the attention of your target audience.

Identifying Your Agency's Strengths

Identify the strengths of your agency and determine how they can be differentiated. Is your agency known for its exceptional customer service, wide range of travel packages, or specialised knowledge in a specific niche? Understanding your agency's strengths will help you craft a USP that aligns with your unique capabilities.

One strength that many successful travel agencies possess is their exceptional customer service. Going above and beyond to ensure customer satisfaction can make a significant difference in the travel industry. By providing personalized attention, prompt responses, and going the extra mile to meet customer needs, your agency can set itself apart from competitors.

Another strength could be the wide range of travel packages your agency offers. From exotic beach getaways to adventurous mountain hikes, having a diverse portfolio of options allows customers to find the perfect trip for their preferences. This variety can attract a broader audience and increase your chances of capturing their attention.

Crafting a Compelling USP

Once you have identified your agency's strengths, it's time to craft a compelling USP. Your USP should clearly communicate the unique benefits customers will receive by choosing your agency. Whether it's the promise of personalized itineraries, exclusive access to hidden gems, or a commitment to sustainable travel, ensure that your USP highlights your unique offerings and resonates with your target audience.

Imagine a USP that promises customers the experience of a lifetime with personalized itineraries tailored to their interests and preferences. By taking the time to understand each customer's desires and curating a trip that exceeds their expectations, your agency can create unforgettable memories and build long-lasting relationships.

Another compelling USP could be offering customers exclusive access to hidden gems. Imagine being able to take your clients to secret spots that only a select few have discovered. This sense of exclusivity can create a sense of excitement and adventure, making your agency the go-to choice for those seeking unique and off-the-beaten-path experiences.

Lastly, a USP that focuses on sustainable travel can resonate with environmentally conscious customers. By highlighting your agency's commitment to reducing the environmental impact of travel and promoting responsible tourism, you can attract a growing segment of travellers who prioritize sustainability.

In conclusion, defining a clear and compelling USP is essential for travel agencies looking to differentiate themselves in a competitive market. By identifying your agency's strengths and crafting a USP that highlights your unique offerings, you can attract and retain customers who resonate with your message and value proposition. So take the time to define your USP and watch your agency soar to new heights!

Enhancing Your Service Offerings

Providing exceptional service is key to differentiating your travel agency. Enhance your service offerings to exceed customer expectations and create unforgettable travel experiences.

Offering Unique Travel Packages

Create unique travel packages that cater to specific interests or demographics. Whether it's adventure travel, luxury vacations, or cultural immersion experiences, offer packages that go beyond the typical tourist offerings. Tailor your packages to provide authentic and memorable experiences that set your agency apart from the competition.

Providing Exceptional Customer Service

Exceptional customer service is a powerful way to differentiate your agency. Train your staff to provide personalised and attentive service throughout the customer journey, from the moment of inquiry to post-trip follow-ups. Foster a culture of customer-centricity and go the extra mile to ensure customer satisfaction. This will not only differentiate your agency but also build customer loyalty and generate positive word-of-mouth.

Building a Strong Brand Identity

A strong brand identity is crucial for differentiating your travel agency and building customer trust and loyalty. A consistent brand image helps customers understand what your agency stands for and creates a memorable impression.

Importance of a Consistent Brand Image

Develop a consistent brand image that reflects your agency's values, personality, and unique offerings. Ensure that your brand identity is reflected across all touchpoints, from your website design and marketing materials to your communication style. Consistency in your brand image builds trust and reinforces your unique positioning in the market.

Leveraging Social Media for Branding

Social media platforms offer an excellent opportunity to showcase your brand and engage with customers. Develop a social media strategy that aligns with your brand identity and target audience. Share compelling travel stories, stunning visuals, and useful travel tips to captivate your audience and create a community of brand advocates.

Implementing Effective Marketing Strategies

Effective marketing strategies are essential for differentiating your travel agency and reaching your target audience. Utilise digital marketing techniques and engage in community outreach and partnerships to increase brand visibility and attract more customers.

Utilising Digital Marketing Techniques

In today's digital world, digital marketing techniques are vital for differentiating your agency. Invest in search engine optimisation (SEO) to improve your website's visibility in search results. Use targeted online advertising campaigns to reach your ideal customers effectively. Leverage social media platforms to connect with your audience and drive engagement. By leveraging digital marketing techniques, you can reach a wider audience and establish your agency as a trusted and unique service provider.

Engaging in Community Outreach and Partnerships

Community outreach and partnerships are powerful tools for differentiation. Collaborate with local businesses, tourist boards, and travel influencers to create unique experiences and promote your agency to a wider audience. Participate in local events, sponsor community initiatives, and engage with your target audience directly. By actively participating in the community, you can differentiate your agency and build strong relationships with potential customers.

In conclusion, differentiating your travel agency from the competition is crucial to attract more customers and build a successful business. By understanding the competitive landscape, defining a compelling USP, enhancing service offerings, building a strong brand identity, and implementing effective marketing strategies, you can set your agency apart and create unique and memorable travel experiences for your customers.

The state of tourism and hospitality 2024

Tourism and hospitality are on a journey of disruption. Shifting source markets and destinations, growing demand for experiential and luxury travel, and innovative business strategies are all combining to dramatically alter the industry landscape. Given this momentous change, it’s important for stakeholders to consider and strategize on four major themes:

The bulk of travel is close to home. Although international travel might draw headlines, stakeholders shouldn’t neglect the big opportunities in their backyards. Domestic travel still represents the bulk of travel spending, and intraregional tourism is on the rise.
Consumers increasingly prioritize travel—when it’s on their own terms. Interest in travel is booming, but travelers are no longer content with a one-size-fits-all experience. Individual personalization might not always be practical, but savvy industry players can use segmentation and hypothesis-driven testing to improve their value propositions. Those that fail to articulate target customer segments and adapt their offerings accordingly risk getting left behind.
The face of luxury travel is changing. Demand for luxury tourism and hospitality is expected to grow faster than any other travel segment today—particularly in Asia. It’s crucial to understand that luxury travelers don’t make up a monolith. Segmenting by age, nationality, and net worth can reveal varied and evolving preferences and behaviors.
As tourism grows, destinations will need to prepare to mitigate overcrowding. Destinations need to be ready to handle the large tourist flows of tomorrow. Now is the time for stakeholders to plan, develop, and invest in mitigation strategies. Equipped with accurate assessments of carrying capacities and enhanced abilities to gather and analyze data, destinations can improve their transportation and infrastructure, build tourism-ready workforces, and preserve their natural and cultural heritages.

McKinsey Live event: Faces, places, and trends: The state of tourism & hospitality

Thursday, June 13 at 10:30 a.m EDT / 4:30 p.m CET

Now boarding: Faces, places, and trends shaping tourism in 2024

Global travel is back and buzzing. The amount of travel fell by 75 percent in 2020; however, travel is on its way to a full recovery by the end of 2024. More regional trips, an emerging population of new travelers, and a fresh set of destinations are powering steady spending in tourism.

There’s no doubt that people still love to travel and will continue to seek new experiences in new places. But where will travelers come from, and where will they go?

We share a snapshot of current traveler flows, along with estimates for growth through 2030.

The way we travel now

Which trends are shaping traveler sentiment now? What sorts of journeys do today’s travelers dream about? How much are they willing to spend on their trips? And what should industry stakeholders do to adapt to the traveler psychology of the moment?

To gauge what’s on the minds of present-day travelers, we surveyed more than 5,000 of them. The findings reveal disparate desires, generational divides, and a newly emerging set of traveler archetypes.

Updating perceptions about today’s luxury traveler

Demand for luxury tourism and hospitality is expected to grow faster than for any other segment. This growth is being powered in part by a large and expanding base of aspiring luxury travelers with net worths between $100,000 and $1 million, many of whom are younger and increasingly willing to spend larger shares of their wealth on upscale travel options. The increase is also a result of rising wealth levels in Asia.

We dug deeper into this ongoing evolution by surveying luxury travelers around the globe about their preferences, plans, and expectations. Some widely held notions about luxury travelers—such as how much money they have, how old they are, and where they come from—could be due for reexamination.

Destination readiness: Preparing for the tourist flows of tomorrow

As global tourism grows, it will be crucial for destinations to be ready. How can the tourism ecosystem prepare to host unprecedented volumes of visitors while managing the challenges that can accompany this success? A large flow of tourists, if not carefully channeled, can encumber infrastructure, harm natural and cultural attractions, and frustrate locals and visitors alike.

Now is the time for tourism stakeholders to combine their thinking and resources to look for better ways to handle the visitor flows of today while properly preparing themselves for the visitor flows of tomorrow. We offer a diagnostic that destinations can use to spot early-warning signs about tourism concentration, along with suggestions for funding mechanisms and strategies to help maximize the benefits of tourism while minimizing its negative impacts.

Six trends shaping new business models in tourism and hospitality

As destinations and source markets have transformed over the past decade, tourism and hospitality companies have evolved, too. Accommodation, home sharing, cruises, and theme parks are among the sectors in which new approaches could present new opportunities. Stakeholders gearing up for new challenges should look for business model innovations that will help sustain their hard-won growth—and profits.

Unbundling offerings, cross-selling distinctive experiences, and embracing data-powered strategies can all be winning moves. A series of insight-driven charts reveal significant trends and an outlook on the future.

Delivery robot stopped beside room in hotel waiting for pick up - stock photo

The future of tourism: Bridging the labor gap, enhancing customer experience

The promise of travel in the age of AI

A mature Indian tourist couple riding in a commuter train in Lithuania, talking, having fun, and looking out the window.

From India to the world: Unleashing the potential of India’s tourists

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Airline Weekly
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Daily Lodging Report

Expedia and Booking in the Post-Pandemic Travel Landscape

Executive summary, travel industry context, booking vs. expedia recovery, booking’s u.s. expansion, web traffic trends, digital-native, marketing economies of scale, new technology and product offerings.

Cross-Sector Offerings

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Report Overview

We check in on the current state of Expedia and Booking Holdings, the big two online travel agencies in the U.S. and Europe, as they recover from the COVID-19 pandemic.

In the short-term, Booking Holdings and Expedia Group are both recovering nicely from the depths of the COVID-19 pandemic. We look at how growth rates, regional strategies, and marketing efficiency are shaping up into year end.

We also take a long-term perspective on how the online travel business model is evolving and what changes Expedia and Booking are making in return. Expedia is focused on launching loyalty and B2B partnerships. Booking Holdings is investing in new tech, including apps and fintech, and in matching Expedia’s cross-sector offering.

What You'll Learn From This Report

How Expedia and Booking’s Gross Bookings, Revenue, and Profits are recovering post-pandemic.
Marketing efficiency for Expedia and Booking year-to-date including how web traffic is shifting and relative returns on investment.
A look into the long-term dynamics that are redefining the online travel space.
New initiatives that Expedia and Booking are investing in for 2023 and beyond.

We check in on the current state of Expedia Group and Booking Holdings, the big two online travel agencies in the U.S. and Europe, as they recover from the COVID-19 pandemic.

In the short-term, Booking and Expedia are both recovering nicely from the depths of the COVID-19 pandemic. Booking is growing faster as Expedia’s airline exposure is a drag. Booking continues to make headway in the U.S. and saw notable progress during the pandemic though Expedia still holds the lead in North America.

Sales and Marketing spend continues to be a major expense and we see little signs that performance marketing efficiency is improving post-pandemic. However, both have invested heavily in brand marketing, loyalty, and new product offerings to drive customer interest and are seeing these initiatives pay dividends in the form of direct or organic search traffic.

The travel industry is shifting and Expedia and Booking are revamping their strategies, but both remain formidable travel competitors.

State of Recovery

Expedia Group and Booking Holdings as the big two online travel agencies in the U.S. and Europe are important bellwethers to understand how the online travel space is recovering from the COVID-19 pandemic. With third quarter 2022 earnings behind us, let’s check up on how these two businesses are performing.

In terms of revenue recovery, online travel stacked up nicely compared to other travel public companies. Airbnb is the superstar leaving all others behind. Hyatt, Choice Hotels, and Ryanair outperformed Booking Holdings to round out the top five. Expedia is slower to recover, but still is above similar 2019 levels of revenue and is outperforming European airlines like IAG Group and Lufthansa, which were plagued by airport backups this summer. The worst ranking are, unsurprisingly, the cruise companies.

While we are comparing online travel agencies to other travel sectors, it is interesting to check in on customer satisfaction scores. The American Customer Satisfaction Index benchmarks how companies and sectors appeal to shoppers over time and relative to one another. Pre-pandemic, the online travel sector had higher satisfaction scores than the broader hotels or airline sector linked to value pricing, online convenience, and predictable experiences.

However, the pandemic appears to have plunged booking sites into a customer service crisis, with scores falling by four percentage points from 79 in 2019 to 75 today. In contrast the overall score for all U.S. businesses only fell by three points to 73. And surprisingly, airline scores grew by one point. Today for the first time ever, customers report the same level of satisfaction using an airline as they do using an OTA.

Online travel receives the lower satisfaction scores for their cancellation policies, promotions, and loyalty programs. We also think that a large part of the issue is that customers don’t trust online booking sites to deliver on complex itineraries when schedules break, as they so often have this summer and during the pandemic broadly.

On the plus side, OTA satisfaction was high with regards to mobile apps and ease of bookings. The ability to deliver a strong customer experience will become an increasingly important tool, in our mind, that booking sites will need to use to stand out from their competitors and peers.

When looking at the big two in aggregate, we can see that the market for online travel gross bookings is reaching the point of full recovery. Together, Expedia Group and Booking Holdings drove $205 billion of gross bookings in the trailing twelve month period ended September 30, 2022. That puts the two just over their 2019 record of $204 billion gross bookings.

However, this top-level trend masks important company differentials. Expedia Group and Booking Holdings historically grew gross bookings at a very similar pace. Each grew at a mid-teens level before the pandemic and both fell by ~60% in 2020. Yet the two have performed quite differently to date with Booking Holdings achieving gross bookings 17% greater than in 2019 while Expedia Group is still 15% below that year.

We attribute this mainly to the different product mixes that each website offers. Booking.com’s inventory is almost entirely accommodations. Further bolstering Booking.com is that 30% of its room nights in Q3 ‘22 came from alternative accommodations – the hottest subsector in the entire travel industry (see Airbnb’s revenue recovery above). In contrast, Expedia has a larger mix of airline tickets in their bookings mix. Air was 6% of Expedia Group’s revenue in Q3 ‘2019 and that segment is still under heavy pressure.

If we examine Expedia’s performance by segment we find that lodging revenue in Q3 2022 was 11% higher than in the same period in 2019, much closer to the performance that Booking Holdings is posting. But Air ticketing is not even half way back to equivalent 2019 levels. Advertising, primarily Trivago, is also holding back Expedia’s recovery.

Let’s look at how other important financial measures stack up at Booking and Expedia in the third quarter of 2022 relative to 2019.

As discussed, Booking Holdings gross bookings are growing while Expedia lags, largely due to the lodging vs air mix. Despite this Expedia’s revenue has been made fully whole, because Lodging carries a significantly higher commission. And so while the shift away from lodging has held back Expedia’s Gross Bookings recovery, the mix has benefited its overall take rate and led to a much smaller differential between Expedia and Bookings on the basis of revenue recovery.

Interestingly, when it comes to operating profit, Expedia is actually outpacing its 2019 earnings by 31% while Booking is up 9%. Booking is still running a higher overall operating margin than Expedia, 42.6% vs. 22.1%, but Expedia was able to generate more incremental operating leverage through expense cuts over the last three years.

This trend of incremental operating leverage at Expedia while Booking retains an overall better margin, shows up clearly if we look at sales and marketing relative to revenue at each company. Sales and marketing is typically the single largest expense line item for an OTA and so examining it closely gives us a good understanding of overall margin.

Over the trailing twelve months leading up to September 2022, Expedia spent 53% of the revenue it earned on sales & marketing. That’s high. More than the equivalent invested by Booking Holdings. But in September of 2019, the same common size S&M metric for Expedia was 54% and in even earlier years like 2017 and 2018 that ratio could be as high as 55%+.

In contrast, Booking Holdings spent 47% of revenue on S&M in TTM Q3 ‘22, up from 43% in Q3 ‘19. Expedia saw a one point gain in S&M leverage while Booking experienced a four point decline – a net differential of 5 percentage points. These seem like small percentages but when multiplied by billions of revenue it adds up to major shifts in operating dollars. This explains why Expedia is at 131% of 2019 operating revenue while Booking is at 109% even as Booking saw a much faster recovery of Gross Bookings and a better overall operating margin.

Common size sales and marketing dating back to 2008 shows a long-term trend of Expedia and Booking slowly converging towards parity on their marketing budgets but Booking still retains the overall edge.

Why is Booking stepping up its sales & marketing in relative terms faster than Expedia? One answer might be that Europe, Booking’s home base, has been slower to recover, thus creating a need for the company to invest in inorganic traffic to bolster sales. Another possibility is that Booking is investing heavily in expanding to the U.S. Booking has made clear it wants to expand even further into Expedia’s home turf but that won’t come fast or cheap.

U.S. desktop traffic data from SimilarWeb suggests that booking.com is making headway against expedia.com. We started by aggregating average monthly U.S. desktop traffic volumes for each site by year. Benchmarked to a 2019 baseline booking.com’s traffic today is 35% higher than pre-pandemic while expedia.com grew by 26%.

To chart that more clearly, we directly compared traffic volumes between the two sites, from 2016 – 2018 expedia.com would regularly receive ~2x as much traffic as booking.com. That dominance fell to 1.7x traffic in 2019. Today expedia.com receives 1.6x more traffic than booking.com

This is a basic analysis and doesn’t include mobile traffic or other Expedia Group domains like hotels.com or Orbitz. However, the directional trend is clear to us that Booking is slowly gaining traffic share over its rival in the U.S. even as it remains quite clearly the second fiddle across the pond.

SimilarWeb is also able to give us a sense of web traffic sources for expedia.com and booking.com in the U.S. which we use as a proxy for their parent company performance.

Its data suggests that unpaid traffic, as a share of total U.S. desktop visits, has grown at both expedia.com and booking.com during the pandemic. Both seem to have reached a parity of ~75% unpaid traffic, a noticeable uptick from the 55-65% traffic share that was the norm pre-pandemic.

This is a positive development for both brands, but just because the traffic is not directly paid for doesn’t mean it has no cost. We combine both organic search engine results and direct brand.com web visits in this bucket. And although neither incur a direct advertising cost paid to Google or other metasearch sites, both can be influenced by brand marketing.

We know that Expedia and Booking have both been leaning heavily into brand marketing on TV, online, and print to drive mindshare amongst consumers. This helps square the circle for us of how sales & marketing spend does not seem to have fallen dramatically even as unpaid traffic sources saw a 10+ ppt share gain. It seems to us that brand awareness marketing campaigns in the U.S. are having their intended effect of driving traffic and searches to these online travel brands without incurring the Google ‘tax.’

Long-Term Business Trend Updates

The travel industry has long been defined by a running series of channel wars between travel operators and their distribution partners. This balance of power is never static and swings back and forth between eras of relative advantages dating back to the start of the jet age.

Suppliers tend to do best in stable, growing economic environments while distributors are often the first to capitalize on disruption – both economic and technological. Distributors tend to move faster on changes in the tech landscape, with online travel agencies, as an example, early to capitalize on the long-term consumer shift to ecommerce. And in moments of economic disruption, recessions tend to make suppliers more willing to pay with margin for the ‘heads in beds’ that third-party channels can deliver.

We would argue that the pre-COVID period was an era of relative supplier strength as brands consolidated and launched book-direct campaigns based around loyalty. Our assumption heading into COVID was that, at a moment of extreme disruption for the travel industry, the pendulum would swing back in favor of third-party distributors.

But this initial assumption has not played out as expected. It is still very much up for debate whether the coming years will see a relative benefit for travel distributors. Brands are now skilled at online marketing. And long-tail platforms, like Google and soft-brand collections, are making it easier for suppliers to reach travelers without paying traditional commissions.

With this historical framework in mind, let’s examine the state of Expedia Group and Booking Holdings, the two largest online travel agencies and how their strategies are evolving to compete in a post-COVID travel world.

We believe Expedia and Booking have several sources of competitive advantage. Some of these sources of business edge are shrinking in the modern environment while new ones are being developed via growth experiments.

Digital-Native // Status: The edge gained by being a digital-native business is shrinking as ecommerce becomes the norm.
Discounting // Status: shrinking as operators drive enforcement of rate parity and incentivize direct booking.
Wide Selection of Inventory // Status: growing as inventory continues to expand and as economic slowdown likely drives operator discounts.
Marketing Economies of Scale // Status: shrinking as brands consolidate, driving ability to compete, and Google secures its place at the top of the funnel.
New Technology and Product Offerings // Status: growing with investment in new technology, such as open APIs and fintech but facing competition from startups.
Cross-Sector Offerings // Status: growing with new STR and tour operator inventory but needs investment and threatens margin dilution.

There was a time when the raison d’etre of an online booking site was simple: bring the largely offline travel industry online. Beginning in the late ‘90s and running well into the 2000s and 2010s, OTAs spearheaded the push to digitize the hotel and airline industry.

Yet while some travel suppliers took embarrassingly long to embrace the web, all the major hotel and airline brands in the U.S. and Europe had done so by 2019. The pandemic forced a major digital upgrade for many remaining offline holdouts.

Bottom line: While there is still opportunity in driving online bookings to offline properties, especially outside of the U.S. and Europe, we think that the days of riding this secular trend to 20%+ gross bookings growth are behind us.

Discounting and Wide Selection of Inventory

The other classical driver of online travel bookings is the perception of value. Online travel agencies aggressively market their ability to offer discounted pricing. Big brand hotels and airlines have in the past decade invested significantly in pushing back against that perception. Hotels, for example, are getting better at enforcing parity and offering the same daily room rate on their website as is available on a booking site. Today, Expedia itself works with Marriott as an exclusive re-distributor of wholesale rates to stamp out non-parity rates. The two companies claim an 80 percent drop-off in Marriott ‘rogue’ rates appearing on metasearch sites. IHG just inked a similar agreement with Expedia.

In fact, in some cases hotels and airlines have managed to flip the script by building significant value into their loyalty programs. Because the hotel will add on free benefits to loyalty members that are charged as separate ancillary fees to third-party customers, some suppliers are effectively offering discounts below OTA pricing even while holding onto the façade of rate parity.

Recent research from Bernstein shows that when consumers search for hotels on Google metasearch that the direct website is most commonly the cheapest available option, in 22% of cases. Booking is tied for the second most common provider of cheapest rates, but that only occurs 11% of the time, a big step down from brand.com. Expedia.com is an even further step down at 4% of the time, but still in the top ten.

This speaks to the growing challenges that online travel agencies face in offering like-for-like discounts. But even if an OTA may not always offer a discount relative to brand.com on the same room at the same property, we need to bear in mind that Expedia and Booking offer comparison shopping tools that can often yield a cheaper rate at a similar property.

The largest hotel company in the world, Marriott, hosted nearly a million room nights in the most recent quarter; Expedia sold 93 million. The chain with the most hotels globally is OYO Rooms, with 15,000 properties; Booking Holdings offers more than 400,000. The scale comparisons are not even close.

This is an important point. The value proposition of an online booking site is increasingly not about providing a Marriott room at a cheaper price but in helping the consumer find a Marriott-like room from a different operator at a better rate.

From the perspective of a branded hotel revenue manager, they have managed to stem the bleeding caused by OTA discounting because perfect parity is maintained. But as far as the consumer is concerned, they still found a discount on the third-party site by booking with a different operator. As Expedia and Booking get bigger, their ability to offer pure discounting is diminishing but their power as comparison shopping platforms increases.

The main pushback against this that brands can offer is loyalty programs. These attempt to lock shoppers into the brands’ ecosystem and prevent cross-shopping. But these tactics are mainly available to branded rooms and independent properties still make up 30% of US and 60% of European rooms, leaving room for the booking sites to drive discounts in the independent space.

Whereas once consumers could reliably find like-for-like discounts on hotel rooms online, those deals are harder to come by today. It also makes it harder for Expedia and Booking to earn the initial click if they cannot offer the cheapest rate for a given property when it is searched.

But shoppers can still expect to save by comparison shopping hundreds, if not thousands, of similar rooms in a given destination. This value-add is not going away, and in fact becoming even larger as both bring alternative accommodations online.

It will also be boosted in the case of an economic slowdown, which looks increasingly likely. The pandemic was a crisis of safety and trust, but not a financial crisis. Thus, hotel groups did an excellent job in maintaining pricing power. But consumer balance sheets are likely to deteriorate in coming years and we suspect that not all hotels will continue to hold the line so firmly on ADRs.

Properties lowering rates to drive ‘heads in beds’ plays nicely into the online travel agency’s strong suit as their price comparison tools can highlight these discounts via the prevailing market rate and drive a race to the bottom that benefits the distributors over suppliers akin to what we saw in 2001 and 2008.

Bottom line: we believe that Booking and Expedia are still able to offer travel savings as part of their value proposition, primarily from comparison shopping, but that their edge here is diminishing as rate parity enforcement is succeeding.

Expedia Group and Booking Holdings are likely the two largest advertisers in the entire travel industry. There was a time when this was a major competitive advantage and central to each companies’ strategy. However, we believe that dynamics are shifting and that returns from marketing economies of scale are diminishing at both.

Expedia and Booking were both some of the earliest businesses to embrace digital performance marketing. This channel is a powerful driver of demand that was initially not well understood and as a result these two OTAs saw outsized advertising return on investment.

Even as competitors wised up to the power of digital marketing, they found it hard to compete. Since performance advertising is sold via auction, having a large advertising budget was a competitive edge. Expedia and Booking built an advantage by leveraging marketing economies of scale. The two OTAs’ bigger budgets meant they were able to consistently outbid smaller hotel operators, driving bookings and margin to their sites, in turn funding larger ad budgets for the next quarter.

Two main factors came together to stop this virtuous cycle. The first was consolidation of travel suppliers. The biggest travel operators, in both hotels and airlines, had grown their market shares substantially by 2019 relative to 2009. This means that the consolidated marketing budgets for the largest brands – Marriott, Hilton, Delta, etc. – are now of the scale to effectively compete against Expedia and Booking. This drives up the cost of the performance ad, and all else being equal, drives down the return on advertising spend.

The second challenge for Expedia and Booking has been Google’s ability to cement itself at the top of the travel marketing funnel . In the past, OTAs had the ability to venue hop to drive up ROIs. If incoming bids from travel suppliers were driving up ad prices at one auction house, say TripAdvisor, an OTA could shift its spend to a more affordable venue, say Trivago.

However, we believe that these travel specific metasearch sites have been losing consumer traffic share to Google metasearch. Data from SimilarWeb backs this up and suggests that Google became even more dominant during the pandemic jumping from a ~51% traffic share in the U.S. to 62%.

It’s not effective to shift your marketing spend to a different venue if it does not receive enough shoppers to provide strong ROI. Following the eyeballs has resulted in most travel advertisers crowding into a single marketplace, namely Google.

This was a bad combination. Larger competitor advertising budgets chasings fewer venues meant that auction prices for clicks on Google had to rise – and ROIs had to fall.

This cost pressure had been building for years but perhaps Expedia and Booking would be able to use the pandemic as a reset and find a way to rebuild advertising ROIs? Our data suggests that, at least so far, this has not been the case.

Both Expedia and Booking continue to rely heavily on Google for their performance marketing. Google ad spend, by our estimates, cost 13% of revenue at these two agencies in 2019. But by 2021, we estimate that figure to have grown to 16% of revenue.

This stands in contrast to Airbnb. Pre-pandemic, the short-term rental site had been investing a similar share of revenue in Google ads. During the pandemic Airbnb shut off much of its performance marketing and saw little impact to its bookings. Airbnb today spends 1% of revenue on Google, a dramatic implied improvement in marketing ROI relative to Expedia and Booking.

Bringing it all together, we have updated our dataset tracking the marketing efficiency of Expedia and Booking. This compares the gross bookings to estimated advertising spend at each company. In effect, we are measuring how many dollars of gross bookings can be bought for one dollar invested in advertising. This is not a perfect measure, for instance there may be timing mismatches or we may be off in our estimate of ad spending, but we believe it gives us a rough sense of how effective the marketing teams are at Booking and Expedia.

Given the discussion above, the updated trend is not surprising. Marketing efficiency has been on the decline for the last decade. In 2008 one dollar spent on ads at Expedia brought $26 of bookings in the door. By 2019, that dollar was 17% less effective, buying $21 of bookings. Similarly Booking Holdings saw its marketing efficiency fall 19% from 2008 to 2019.

Interestingly, we believe that YTD Expedia has seen its marketing efficiency decline even further while Booking has recovered from a COVID dip back to its pre-pandemic operating level.

Bottom line: Expedia and Booking are seeing their edge from marketing economies of scale erode as suppliers get better at performance marketing and Google’s metasearch share grows. The pandemic has not reversed this trend but rather seems to have amplified it. While Expedia and Booking remain powerful direct marketing machines this will need to be supplemented by new customer acquisition tactics.

The classic booking site model of online convenience, value pricing, and performance marketing is still powerful but doesn’t drive the results it once did. The key question for both Expedia Group and Booking Holdings today is how they can supplement this core with new tactics that drive customer acquisition and, perhaps even more importantly, customer retention.

Both of these groups are experimenting with new products and technologies to achieve this while minimizing the cost of their Google “tax” bill. Top areas being explored are loyalty, mobile, and B2B partnerships.

As the saying goes, if you can’t beat ‘em, join ‘em. Loyalty programs are huge drivers of business for travel companies . 50-60%+ of passengers on U.S. airlines are loyalty members and these programs contribute 40%+ of room revenue at major global hotel brands. Points programs keep otherwise fickle travelers true to a given brand family. Loyalty membership has been among the most successful tools that travel suppliers used to drive a wedge between customers and online booking sites.

But no online travel agencies loyalty initiatives has yet risen to the level where they are a serious competitor against hotel or airline programs. Booking.com has offered its Genius program for several years now through various iterations, with the most recent update in May 2022 .

The Genius program is simple. It is split into three tiers, each with escalating levels of discounts available, starting at 10% back and growing to 20% off. Any customer that creates a booking.com log-in is automatically enrolled in Genius Level 1 and the more hotel stays booking with the company, the higher the level you qualify for.

The primary goal of this program is to create a closed user group – a contractual loophole that allows properties to avoid rate parity clauses – by requiring a sign in. Hoteliers that want to drive business are then free to offer discounted rates to Booking.com shoppers. The majority of loyalty discounts are funded by the hotels themselves.

The simultaneous biggest strength and weakness of this loyalty effort is its simplicity. Allowing anyone to sign up and qualify makes it a savvy discounting tactic to drive near-term bookings. But the program is too simple for its own good in other ways. The offering is, in our opinion, not robust enough to attract and retain high value travelers – you know the type, credit card toting road warriors. These customers will prefer points based programs run by airlines and hotels that can provide significantly more than 10% savings when used effectively.

That’s what makes Expedia’s latest foray into loyalty so interesting. Expedia previously had four different loyalty programs split across its different brands with separate offerings from expedia.com, hotels.com, Orbitz, and Ebookers. This summer it announced plans to retire each of these plans and replace them with a new offering, called One Key . The new program will be points-based and allow guests to earn and burn across all Expedia Group brands, including Vrbo.

It’s been hard for Expedia to tie these all together because of different tech back-ends at each site. But as Expedia works to break down its internal tech silos, the program is expected to launch in 2023. Details are still scant but we know that it will port over 154 million members aggregated from across all of Expedia’s existing programs. For context, only Marriott would offer a larger loyalty program than Expedia.

Will consumers find this new loyalty to be a value add? It will likely offer less monetary value than a dedicated single-supplier loyalty program. But Expedia will attempt to make up for that by offering greater flexibility to redeem points across brands and product types (e.g. earn on flights and redeem on short-term rentals). It is also likely that Expedia points will let users double dip on earning airline miles, which can be a powerful perk (e.g. when redeeming Expedia points, the user still earns their airline miles for the flight).

Expedia CEO Peter Kern told Skift that this program will be targeted at the mid market of travelers who take several trips a year but not enough to earn top-tier hotel or airline status. “The real point is that most people don’t ever earn enough in rewards programs to get much reward out of it,” he said. “And for us, we have millions of members who can get a benefit, even if they’re traveling one, two, three times a year and … staying in different hotels and needing to take different airlines… So I think we serve a really important role there… and we want people to enjoy our brands as a family of brands and products as opposed to discrete things you just go into and think of as a single brand.”

Unlike the Genius program, Expedia will be funding a lot of these loyalty discounts itself. This should make the program more consistent, and perhaps even more valuable, but it will come with a greater cost than Booking.com pays. Loyalty driven promotions and discounts will likely show up on the income statement as a contrarevenue item, hiding not in the expense line items but as a reduction in Expedia’s take rate.

It’s far too early to judge the success or failure of Expedia’s loyalty initiatives but it speaks to the company’s need to close the back door on customer turnover. “There’s a mass of people that are up for grabs every day.”, Peter Kern, Expedia’s CEO explains. “The challenge hasn’t been buying them… The challenge has been keeping them.”

The new One Key is central to this strategy which in turn all ties back to online advertising return on investment. Lower turnover maximizes customer lifetime value (LTV) and allows Expedia to bid higher on online auctions and still maintain a profitable return on investment. Loyalty becomes the key to Expedia being able to compete effectively in a world of structurally higher online travel performance advertising costs.

Mobile applications are another important strategy being pursued by Expedia and Booking. Shoppers are moving towards a mobile-first world and increasingly prefer the convenience of an app. Today we estimate that a third or more of all hotel and airline revenue is booked via mobile devices. There is even a higher rate of phone usage when browsing and searching for travel, with nearly 50%+ of hotel and airline traffic share coming via phones.

Even better for OTAs, mobile apps are by definition a form of direct traffic that avoids performance marketing costs. This makes apps an easy win-win for Expedia and Booking in that it drives customer satisfaction while avoiding expensive marketing costs.

Booking CEO Glenn Fogel said that, “about 45% of our room nights were booked through our apps in the third quarter [of 2022]”. That is up from ~35% of room nights in 3Q 2019. An even higher share, 60% of room nights sold were via mobile channels in 3Q 2022, with the differential mostly due to mobile web usage outside of the dedicated app. At Expedia Group, CEO Kern disclosed that, “app users drove over 2.5x the gross bookings per customer, 2.5x the gross profit per customer and 2.5x the repeat bookings versus non-app users.”

That’s not to say the mobile channel is completely free. There is still research and development costs that can add up to be quite substantial and both Expedia and Booking have been using direct performance ad campaigns to drive app downloads. Plus if you take bookings via iOS, Apple will take a cut. But even so, the development part of the expense equation still leans into the booking sites’ tech advantage. Their development teams are better positioned to launch and maintain apps than peers.

The most downloaded online travel agency app in the U.S. in the first half of 2022, according to Apptopia , was Vrbo. Booking.com was number three, while brand Expedia took fourth place. Booking.com’s app “was the only online travel agency app to consistently gain market share in the U.S. in 2022,” Apptopia said. Booking.com investing in Snapchat ads may have had a large role to play in driving downloads.

Mobile apps front-load a lot of customer acquisition expenses. You need to spend upfront in R&D and you still will pay via performance advertising to drive downloads. But the hope is that once the app is shipped and downloaded you will be left with a user base of direct shoppers driving repeat visits and bookings.

Partnerships

We have thus far assumed that there are only two options for travel bookings through an online travel agency or direct through a supplier. But the reality is far more complicated than that. Many airlines offer hotel bookings, hotels offer car rentals, and every combo in between.

But it is not just travel companies attempting to up their ancillary game. Travel has a strong lifestyle halo surrounding it that non-travel companies are looking to cash in on. These “non-endemic” businesses have a non-travel core product but want to affiliate their brands with the jetsetter lifestyle in shopper’s minds. Most obvious are credit cards that have built travel platforms but there are many others out there as well.

Online travel agencies have realized that partnering with businesses looking to merchandise travel presents a strong opportunity for a win-win by leaning into each platform’s comparative advantages. OTAs have a true comparative advantage in building travel inventory and online tech tools but their customer acquisition costs are rising. Meanwhile these third-party brands have direct traffic, since the prospective traveler has already landed on their ecommerce portal, but would find building out a wide selection of travel products cost prohibitive.

Both Booking and Expedia have been focused on building B2B solutions to take advantage of this opportunity. It’s true that there is a cost because the OTAs need to split their commission with a partner but on the flip side there is no need to spend any money on advertising since the marketing partner bears the full customer acquisition cost.

Booking doesn’t disclose B2B revenue but did spend $1.2 billion to acquire Getaroom in December 2021 . Getaroom is a B2B distributor of hotels that signs wholesale deals for rooms and distributes them through its affiliate partners. Booking also runs Priceline Partner Solutions, an affiliate program, but out of the big two, Expedia has made the largest push into the B2B space. Expedia now generates 22% of revenue from B2B partnerships, nearly $2B YTD.

Expedia’s B2B sales are primarily driven by its partner solutions business which offers white label and co-branded solutions. The platform allows partners to sell Expedia travel products throughout their checkout process. When an airline offers ancillary sales of hotels or car rentals in a given destination after buying a ticket, the inventory is often offered by a white label third-party like Expedia. For instance, Expedia will partner with Jetblue to sell some hotel rooms.

Outside of travel suppliers, Expedia has also built white label relationships with corporate and offline travel agencies, credit card companies, AARP, and other similar platforms. It will even partner with other OTAs as in a recent deal to provide Vrbo short-term rental inventory to Hopper .

Expedia recently launched a new API platform, called Open World, to drive further bookings. This new API will be based around microservices to deliver “payments, fraud, conversations, and service, that anyone can use to accelerate, enhance, or even enter the travel business.” Rather than simply plugin in inventory as might be the case now, the goal is to offer more ecommerce building blocks to third-parties.

CEO Kern teased it as an entrance into the creator economy. He specifically highlighted the potential for a TikTok influencer to build an online travel booking platform customized to their audience to allow them to monetize travel content.

Kern wants Expedia to, “get to the point… where small entrepreneurs can use our technology to get into the travel business. So if you are an influencer, and let’s say you’ve got 100,000 followers because you write about travel for people with physical disabilities, we can power you to turn those ideas into trips… Not just a link, not just an affiliate deal, but a real ability to sell travel.”

While we suspect the majority of users will be banks, travel agents, loyalty programs, as is the case today, the possibility of building B2B partnerships far outside of typical use cases is intriguing.

It is also worth emphasizing that Partnerships are not a panacea. If Expedia or Booking are not careful they could wind up cannibalizing their own business, and customers that don’t have a direct relationship with a brand don’t repeat, and lower the overall OTA customer lifetime value. Expedia and Booking need to tread lightly to avoid finding themselves in the same situation, reliant on third-parties for bookings, that hotel brands found themselves in a decade ago.

However in the case where the customer was not going to shop via an online booking site in any case, then the B2B partnership is all upside, even if it comes at a lower take rate. A little cannibalization might be an acceptable price to pay for this new audience.

We suspect that, on balance, a large share of B2B2C customers are not being cannibalized since if they are airline or hotel loyalty members or if they are coming via a travel non-endemic then the odds of them booking via an OTA were slim to begin with. And the potential to crack the market for influencers and creators to sell travel via white label could drive major upside. Bottom line: Metasearch is consolidating and returns to scale from marketing are shrinking. Expedia and Booking are turning to innovation and new products to drive traffic and bookings that don’t require paying a performance advertising toll. We see growing potential for new loyalty programs, redesigned mobile apps, and B2B partnerships to drive incremental bookings.

Cross-Sector Offering s

How can online travel agencies drive customer acquisition in new ways that avoid incurring performance marketing costs such as the Google “Tax.” We looked above at new product launches and technology but there is another answer. Build a more holistic travel experience. If you have a genuinely more delightful booking experience than travelers will come to you direct.

Travel suppliers often see themselves in silos, providing just a single service. Airlines specialize in flights, hotels in rooms, and what about the actual day-to-day activities? Travel agencies are one of the few spaces that can see the forest for the trees and look at the whole trip. This is a huge built-in advantage since it aligns with the customers’ vision of the trip. Travelers are frustrated by needing to piece together multiple pieces of their trip from different suppliers. This is where OTAs can stand out by offering all-in-one convenience, like the offline travel agents of old used to do.

Expedia today offers a wide range of travel services including flights, hotels, accommodations, cruises, and day tours. We discussed earlier how that diversification away from hotels has been holding them back during the recovery, but long-term we see a benefit. Expedia’s challenge though has been integrating its many different product offerings across its many brands. Vrbo’s short-term rental inventory, for instance, was long siloed from Expedia’s other offerings.

Booking Holdings on the other hand, has long focused almost entirely on accommodations. At first that was just hotels, but over the last half-decade it has added a substantial amount of alternative accommodation. Today 30% of Booking’s room nights were from short-term rentals.

Booking has big ambitions to launch a more holistic product offering, with the objective of positioning itself as a one stop shop for consumers. They call it the Connected Trip. As early as 2019 CEO Fogel said that, “If you want to create this connected trip that makes [a trip] so much easier, you’ve got to do all parts of it.”

In November 2021, Booking Holdings entered into an agreement to buy flight provider eTraveli for $1.8 billion, although the deal is still under regulatory review. Offering flights seems to be gaining traction with the company reporting Airline ticket sales up 235% in Q3 2022 over 2019 levels and up 45% compared to 2021.

Booking sees flights as an important tool to drive new customers into their ecosystem, especially since so many trips start with purchasing a flight first. Seeming to underscore that it’s strategy is working, 20% of all flight bookings in Q3 2022 were from customers new to booking.com.

Booking is also working to launch a number of other connected trip initiatives such as better integrated ground transport and standing up a fintech unit to allow more suppliers and more sectors to accept customers via booking.com, as well as to upsell products like travel insurance.

Bottom Line: Consumers don’t view the travel industry as divided into the slices that travel insiders carve out. Having a delightful and holistic travel booking experience is a major differentiator and if done successfully can drive direct traffic and repeat business. Ironically, in building out multisector convenience, online travel agencies are following the path of their offline travel agent ancestors. We see both Expedia and Booking investing in building their multi-sector product offerings and driving growth through cross-selling.

Booking and Expedia are both recovering nicely from the depths of the COVID-19 pandemic. Booking Holdings is recovering faster due to its tilt towards hotels while Expedia’s airline exposure is a drag. Expedia has done a better job deleveraging than Booking, though the latter still holds the overall margin advantage.

Booking Holdings continues to make headway in the U.S. and saw notable progress during the pandemic, but Expedia still holds the lead in North America. Sales and Marketing spend continues to be a major expense and we see little signs that performance marketing efficiency is improving post-pandemic. However, both have invested heavily in brand marketing, loyalty, and new product offerings to drive customer interest and are seeing these initiatives pay dividends in the form of direct or organic search traffic.

From a long-term perspective Expedia and Booking are seeing two of their largest tailwinds deteriorate as ecommerce becomes the norm and as suppliers get more savvy about online marketing and rate parity. Instead they will need to invest in driving broader inventory, innovative technology, partnerships, and holistic travel offerings.

Expedia Group and Booking Holdings have invested heavily in many of these initiatives. Expedia is focused on launching loyalty and B2B partnerships. Booking Holdings is investing in new tech, including apps and fintech, and in matching Expedia’s cross-sector offering.

The travel industry is shifting and Expedia and Booking are revamping their strategies, but both remain formidable travel competitors.

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20 largest travel companies in the world.

In this article, we will be covering the 20 largest travel companies in the world. If you want to skip our detailed analysis of the travel and tourism industry, you can go directly to 5 Largest Travel Companies In The World .

The travel and tourism sector plays a vital role in global economies. It creates jobs, fosters cultural exchange, and supports local businesses. It promotes understanding between nations while also contributing significantly to GDP growth. According to the World Travel & Tourism Council (WTTC), travel and tourism accounted for 7.6% of global GDP in 2022 while also creating 22 million new jobs around the world.

An Analysis of the Global Travel and Tourism Industry

The travel and tourism sector plays a crucial role in addressing societal and economic challenges. The industry is now thriving after being severely impacted during the peak of the COVID-19 crisis, which led to travel restrictions, cancellations, and a sharp decline in tourism activities. According to a report by Market Research Future, the global travel and tourism market reached a value of $648.03 billion in 2023. The market is expected to grow at a compound annual growth rate (CAGR) of 5.8% from 2023 to 2032 and reach a value of more than $1.01 trillion by the end of the forecasted period. The North American region leads the global travel and tourism market, while Europe follows as the second-largest market. The Asia-Pacific region is anticipated to exhibit the fastest growth in the industry during the forecasted period.

The travel and tourism market is undergoing a digital transformation with online booking platforms, travel agencies, mobile apps, and online travel-related services driving growth by enhancing connectivity and providing convenient and personalized traveler experiences. The trend of cultural and experiential tourism, with travelers seeking authentic, immersive experiences, unique destinations, and local experiences, is also a key factor driving market growth. Moreover, the rise in disposable incomes, especially in emerging markets, is leading to increased tourism. More people have the means to explore domestic and international destinations. According to the World Travel & Tourism Council (WTTC), domestic visitor spending saw an increase of 20.4% in 2022. On the other hand, international visitor spending went up by 81.9% in 2022.

What are Some of the Biggest Companies in the Travel and Tourism Industry Up To?

Prominent companies in the travel and tourism industry are actively pursuing various strategies to expand their global presence and increase their profitability. Some of the most notable names are Marriott International Inc. (NYSE: MAR ), Hilton Worldwide Holdings Inc. (NYSE: HLT ), and Booking Holdings Inc. (NASDAQ: BKNG ).

Booking Holdings Inc. (NASDAQ:BKNG) is one of the world’s largest providers of online travel and related services. It provides online travel services in more than 220 countries through its brands which include Booking.com, Priceline, Agoda, KAYAK, and OpenTable. Booking Holdings Inc. (NASDAQ:BKNG) is also one of the best travel stocks to buy . On February 22, Booking Holdings Inc. (NASDAQ:BKNG) reported strong earnings for the fiscal fourth quarter of 2023. The company reported earnings per share (EPS) of $32, surpassing EPS estimates by $1.95. The company’s revenue for the quarter grew by 18.15% year-over-year and amounted to $4.78 billion, ahead of market consensus by $73.37 million. Here are some comments from Booking Holdings Inc.’s (NASDAQ:BKNG) Q4 2023 earnings call:

“As we look to the year ahead, we see strong growth on the books for travel that’s scheduled to take place in 2024, which gives early indications of potentially another record summer travel season. As we’ve noted previously, a high percentage of these bookings are capable and what is on the books today for the summer period represents a small percentage of the total bookings that we expect to ultimately receive. David will provide further details on fourth quarter results and on our thoughts about the first quarter and full year 2024. Looking back at the full year of 2023, I am proud of our efforts to drive more benefits to our travelers and supply partners while also delivering record-setting industry-leading financial results. We reached a significant milestone last year with our customers’ booking an all-time high of over 1 billion room nights on our platform, which was an increase of 17% versus 2022.”

As the demand for travel and tourism continues to grow, companies operating in this space are launching new products, engaging in mergers and acquisitions, increasing investments, and forming contracts and collaborations. Marriott International Inc. (NYSE:MAR) is an American multinational hospitality company. It operates and franchises hotels and licenses vacation ownership resorts in more than 130 countries around the world. On March 7, Marriott International Inc. (NYSE:MAR) announced that it has entered into an agreement with Victoria Park Hotels Ltd. to launch The Park Lane Hong Kong, Autograph Collection. This new addition is set to become part of Autograph Collection Hotels by early 2025. Autograph Collection Hotels’ portfolio includes more than 300 independent properties in some of the most desirable locations around the world. Situated within a 28-story mixed-use complex featuring retail spaces on the lower floors, the new hotel is projected to have 820 guest rooms, an executive lounge, 3 unique dining venues, extensive event spaces spanning over 1,700 square meters, and various recreational facilities. Some of the guest rooms will boast stunning views of Victoria Harbour, while others will overlook the city or Victoria Park in Hong Kong.

On February 7, Hilton Worldwide Holdings Inc. (NYSE:HLT) announced an exclusive strategic partnership with Small Luxury Hotels of the World (SLH) that will introduce guests of Hilton Worldwide Holdings Inc. (NYSE:HLT) to a wide range of hotels in some of the most popular destinations around the world. This collaboration will significantly enhance Hilton Worldwide Holdings Inc.’s (NYSE:HLT) luxury offerings as unique SLH properties become part of the esteemed Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, and LXR Hotels & Resorts brands.

Now that we have discussed what’s going on in the global travel and tourism industry, let’s take a look at the 20 largest travel companies in the world.

A line of travellers queuing for a commercial flight, emphasizing the airport management operations.

Methodology

In this article, we have listed the 20 largest travel companies in the world. To find the top travel companies in the world, we sifted through various sources including industry reports, our own rankings in addition to rankings available on various websites, and consulted stock screeners from Yahoo Finance and Finviz. For companies that are publicly traded, we decided to rank them according to their market capitalization as of March 9. We used fiscal year revenues to rank the companies that are not publicly traded. For foreign companies, we converted the market caps and revenues to US dollars according to their respective exchange rates, as of March 9. Finally, we narrowed down our selection to rank the 20 largest travel companies in the world based on their market capitalization and revenues, which are listed below in ascending order.

20. Host Hotels & Resorts Inc. ( NYSE: HST )

Market Capitalization: $14.9 Billion

Host Hotels & Resorts Inc. (NYSE:HST) is a major American lodging real estate investment trust (REIT) that invests in hotels. It owns a diverse portfolio of luxury and upper-upscale hotels. Host Hotels & Resorts Inc. (NYSE:HST) has a market capitalization of $14.9 billion as of March 9, 2024.

19. Hyatt Hotels Corporation ( NYSE: H )

Market Capitalization: $16.12 Billion

Hyatt Hotels Corporation (NYSE:H) is an American multinational hospitality company. As one of the world’s top hospitality companies, it manages and franchises luxury and business hotels, resorts, and vacation properties in more than 70 countries across 6 continents. As of March 9, 2024, Hyatt Hotels Corporation (NYSE:H) has a market capitalization of $16.12 billion.

18. InterContinental Hotels Group PLC ( NYSE: IHG )

Market Capitalization: $17.4 Billion

InterContinental Hotels Group PLC (NYSE:IHG) is a British multinational hospitality company. With more than 6,000 hotels in over 100 countries, it is one of the world’s leading hotel companies. InterContinental Hotels Group PLC (NYSE:IHG) has a market capitalization of $17.4 billion as of March 9, 2024. It ranks 18th on our list of the 20 biggest travel companies in the world.

17. Expedia Group Inc. ( NASDAQ: EXPE )

Market Capitalization: $18.5 Billion

Expedia Group Inc. (NASDAQ:EXPE) is an American travel technology company. As one of the top travel agencies in the world, it owns and operates various brands including Expedia, Hotels.com, CarRentals.com, Vrbo, Travelocity, Trivago, Orbitz, Ebookers, CheapTickets, and Expedia Cruises. As of March 9, 2024, Expedia Group Inc. (NASDAQ:EXPE) has a market capitalization of $18.5 billion.

16. Southwest Airlines Co. ( NYSE: LUV )

Market Capitalization: $20.44 Billion

Southwest Airlines Co. (NYSE:LUV) is an American airline company. It offers low-cost air travel service with frequent flights of mostly short routes. As one of the biggest travel companies in the world, Southwest Airlines Co. (NYSE:LUV) has a market capitalization of $20.44 billion as of March 9, 2024.

15. Qatar Airways Group

Revenue: $21 Billion

Qatar Airways Group is the flag carrier of Qatar. Owned by the Government of Qatar, it is one of the world’s top airlines and it currently flies to over 170 international destinations. Qatar Airways Group generated an annual revenue of $21 billion in the year 2022-2023. It ranks among the top 15 on our list of the 20 largest travel companies in the world.

14. Carnival Corporation & plc (NYSE: CCL )

Market Capitalization: $21.38 Billion

Carnival Corporation & plc (NYSE:CCL) is a British-American cruise operator. As one of the world's largest leisure travel companies, it owns some of the most well-known cruise line brands in North America, the United Kingdom, Germany, Italy, and Australia. Carnival Corporation & plc (NYSE:CCL) has a market capitalization of $21.38 billion as of March 9, 2024.

13. Galaxy Entertainment Group Limited (SEHK:0027)

Market Capitalization: $21.83 Billion

Galaxy Entertainment Group Limited (SEHK:0027) is one of Asia’s top developers and operators of integrated entertainment and resort facilities. It owns and operates a broad portfolio of integrated resort, retail, dining, hotel, and gaming facilities in Macau. As one of the top travel companies in the world, Galaxy Entertainment Group Limited (SEHK:0027) has a market capitalization of $21.83 billion as of March 9, 2024.

12. Delta Air Lines Inc. ( NYSE: DAL )

Market Capitalization: $27.17 Billion

Delta Air Lines Inc. (NYSE:DAL) is one of America’s major airlines. It is also one of the world’s largest airlines by number of passengers carried. As one of the top travel companies in the world, Delta Air Lines Inc. (NYSE:DAL) has a market capitalization of $27.17 billion as of March 9, 2024.

11. Amadeus IT Group S.A. (BME:AMS)

Market Capitalization: $27.31 Billion

Amadeus IT Group S.A. (BME:AMS) is a Spanish multinational technology company that develops technology and software for airlines, travel agencies, hotels, payment providers, and other travel-related businesses to enhance their operations and customer experiences. With a presence in more than 190 countries, the company provides software solutions for the global travel and tourism industry. As of March 9, 2024, Amadeus IT Group S.A. (BME:AMS) has a market capitalization of $27.31 billion.

10. Trip.com Group Limited ( NASDAQ: TCOM )

Market Capitalization: $28.27 Billion

Trip.com Group Limited (NASDAQ:TCOM) is a multinational travel service company that ranks among the top 10 on our list of the largest travel companies in the world. It owns and operates several travel agencies and travel fare aggregators including Ctrip, Qunar, Trip.com and Skyscanner. As of March 9, 2024, Trip.com Group Limited (NASDAQ:TCOM) has a market capitalization of $28.27 billion.

9. Ryanair Holdings plc ( NASDAQ: RYAAY )

Market Capitalization: $32.3 Billion

Ryanair Holdings plc (NASDAQ:RYAAY) is an Irish airline company. As one of Europe's largest airline groups, it is the parent company of Ryanair, Ryanair UK, Buzz, Lauda, and Malta Air. With a market capitalization of $32.3 billion as of March 9, 2024, Ryanair Holdings plc (NASDAQ:RYAAY) ranks 9th on our list of the 20 largest travel companies in the world.

8. Emirates Group

Revenue: $32.6 Billion

Emirates Group is Dubai’s state-owned international aviation holding company. It owns Dubai National Air Travel Agency (dnata), an airport and ground services company, and Emirates Airline, one of the largest airlines in the Middle East. Emirates Group generated an annual revenue of $32.6 billion in the year 2022-2023.

7. Royal Caribbean Cruises Ltd. ( NYSE: RCL )

Market Capitalization: $32.71 Billion

Royal Caribbean Cruises Ltd. (NYSE:RCL) is a global cruise holding company that owns and operates cruise brands including Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. As one of the world’s largest cruise line operators, Royal Caribbean Cruises Ltd. (NYSE:RCL) has a global fleet of 65 ships traveling to around 1,000 destinations around the world. The company has a market capitalization of $32.71 billion as of March 9, 2024.

6. Las Vegas Sands Corp. ( NYSE: LVS )

Market Capitalization: $38.81 Billion

Las Vegas Sands Corp. (NYSE:LVS) is an American casino and resort company that owns and operates integrated resorts in Macao and Singapore. As a driver of valuable leisure and business tourism, it is one of the world’s largest hotel and casino companies. With a market capitalization of $38.81 billion as of March 9, 2024, Las Vegas Sands Corp. (NYSE:LVS) ranks 6th on our list of the 20 largest travel companies in the world.

Click to continue reading and see 5 Largest Travel Companies In The World .

TripAdvisor: Business Model, SWOT Analysis, and Competitors 2023

Inside This Article

TripAdvisor is a renowned online travel platform that allows users to find, research, and book various travel-related services. This blog article will delve into the business model of TripAdvisor, examining how it generates revenue and creates value for its users. Additionally, a SWOT analysis will be conducted to evaluate the company's strengths, weaknesses, opportunities, and threats in the dynamic travel industry. Furthermore, the article will shed light on TripAdvisor's key competitors in 2023, exploring how they stack up against this industry giant.

What You Will Learn:

Who owns TripAdvisor and how its ownership structure impacts its operations and decision-making process.
The mission statement of TripAdvisor and how it guides the company's goals and strategies.
The various revenue streams and business models employed by TripAdvisor to generate profits and sustain its operations.
An in-depth understanding of the TripAdvisor Business Model Canvas and how its different elements contribute to the company's success.
A comprehensive overview of the key competitors in the market, their strengths, weaknesses, opportunities, and threats (SWOT) in comparison to TripAdvisor's position.

Who owns TripAdvisor?

Ownership of tripadvisor.

TripAdvisor is a publicly traded company, which means it is owned by shareholders who hold shares of its stock. The company went public in 2011 and is listed on the NASDAQ stock exchange under the ticker symbol "TRIP."

As of [current year], the ownership of TripAdvisor is distributed among a diverse group of institutional and individual investors. The largest shareholders include mutual funds, pension funds, and other investment firms. These institutional investors typically hold significant portions of the company's shares.

Some of the notable institutional shareholders of TripAdvisor include [name of institution]. These institutions have a vested interest in the success and growth of the company and often play an influential role in its decision-making processes.

In addition to institutional investors, individual investors also own shares of TripAdvisor. These individual shareholders can range from small retail investors to high-net-worth individuals who believe in the potential of the company.

It is worth noting that the ownership of TripAdvisor can change over time as investors buy or sell shares in the market. The company's stock price and performance can influence the ownership structure as well. Major events, such as acquisitions or mergers, may also impact the ownership landscape of TripAdvisor.

Overall, the ownership of TripAdvisor is spread among a diverse group of investors, both institutional and individual, who collectively shape the future of the company through their shareholdings.

What is the mission statement of TripAdvisor?

The mission statement of tripadvisor: empowering travelers.

TripAdvisor, the world's largest travel platform, is driven by a clear and distinctive mission statement - to empower travelers. The company's aim is to assist travelers in uncovering the best experiences, accommodations, and attractions that suit their individual preferences and needs. By providing a platform for reviews, recommendations, and bookings, TripAdvisor enables travelers to make well-informed decisions and plan unforgettable trips.

Enabling Informed Decisions through Reviews and Recommendations

At the core of TripAdvisor's mission lies the belief that every traveler should have access to unbiased, reliable, and up-to-date information. Through its extensive database of user-generated content, TripAdvisor offers millions of reviews and opinions on hotels, restaurants, attractions, and destinations worldwide. This wealth of information allows travelers to gain insights into other visitors' experiences, helping them make informed decisions about where to stay, dine, and explore.

Inspiring Exploration and Discovery

TripAdvisor recognizes that travel is not just about ticking off destinations from a checklist but also about the transformative experiences and connections made along the way. The mission statement reflects the company's commitment to inspiring travelers to explore new horizons, discover hidden gems, and immerse themselves in diverse cultures. By providing a platform that showcases a wide range of travel options and itineraries, TripAdvisor encourages travelers to step outside their comfort zones and embark on unique journeys.

Simplifying Travel Planning and Bookings

In addition to providing valuable insights and inspiration, TripAdvisor aims to simplify the process of travel planning and bookings. The platform offers a comprehensive suite of tools and features, including price comparison, availability checks, and seamless booking options. By consolidating all the necessary information and resources in one place, TripAdvisor ensures that travelers can efficiently plan their trips and secure the best deals without the hassle of navigating multiple websites.

Fostering a Community of Travelers

The mission statement of TripAdvisor extends beyond being a mere travel resource; it aims to create a global community of travelers. Through its platform, users can connect with like-minded individuals, exchange travel advice, and share their own experiences. TripAdvisor actively encourages community engagement by allowing users to contribute their reviews, photos, and recommendations. By fostering this sense of community, the company strives to create a supportive and collaborative environment where travelers can learn from each other and build lasting connections.

In conclusion, the mission statement of TripAdvisor revolves around empowering travelers by providing them with comprehensive and reliable information, inspiring exploration, simplifying travel planning, and fostering a community of like-minded individuals. Through its dedication to these principles, TripAdvisor remains committed to making travel experiences more enjoyable, memorable, and accessible for all.

How does TripAdvisor make money?

Advertising revenue.

One of the primary ways TripAdvisor generates revenue is through advertising. The platform offers various advertising solutions to businesses in the travel industry, including hotels, restaurants, and tour operators. These businesses can pay to have their listings featured prominently on TripAdvisor's search results and pages.

TripAdvisor's advertising model operates on a cost-per-click (CPC) basis, where businesses are charged each time a user clicks on their advertisement. The CPC rates vary depending on factors such as the location and popularity of the listing. This advertising revenue contributes significantly to TripAdvisor's overall income.

Hotel Booking Commission

Another significant source of revenue for TripAdvisor is its hotel booking commission. Through its website and mobile app, TripAdvisor allows users to search for and book accommodations directly. When users make a hotel booking through TripAdvisor, the platform earns a commission on the transaction.

TripAdvisor has partnerships with various online travel agencies (OTAs), such as Expedia, Booking.com, and Hotels.com. When users book a hotel through TripAdvisor, they are often redirected to one of these partner sites to complete the reservation. TripAdvisor earns a commission from the partnering OTA for each successful booking made through its platform.

Non-Hotel Revenue

In addition to hotels, TripAdvisor also generates revenue from other travel-related sectors. The platform offers advertising and booking options for restaurants, attractions, and vacation rentals. Similar to its hotel booking commission model, TripAdvisor earns a commission when users book these non-hotel services through its platform.

Furthermore, TripAdvisor offers subscription-based services to businesses in the travel industry. For example, it provides a Business Advantage program that allows accommodation providers to enhance their listings with additional features, such as special offers and increased visibility. Businesses pay a subscription fee to access these premium services, contributing to TripAdvisor's revenue stream.

Display and Sponsored Content

TripAdvisor also monetizes its platform through display and sponsored content. The website features various ad placements, including banner ads, sponsored listings, and sponsored articles. Businesses can pay to have their content displayed to TripAdvisor users, increasing their visibility and brand exposure.

Moreover, TripAdvisor partners with destination marketing organizations (DMOs) and tourism boards to promote specific destinations. These partnerships often involve sponsored content collaborations, where TripAdvisor showcases curated travel guides, articles, and recommendations for a particular location. These collaborations provide an additional source of revenue for TripAdvisor.

In summary, TripAdvisor generates revenue through advertising, hotel booking commissions, non-hotel bookings, subscription services, and display/sponsored content. These diverse revenue streams enable the platform to maintain its operations, continue providing valuable travel resources, and offer a free user experience to its millions of users.

TripAdvisor Business Model Canvas Explained

Introduction to the business model canvas.

The Business Model Canvas is a strategic management tool that helps visualize and analyze the key components of a business model. It provides a framework for understanding how different aspects of a business interact and contribute to its overall success. In this blog post, we will explore the TripAdvisor Business Model Canvas and shed light on its key elements.

Key Partnerships

One of the essential components of TripAdvisor's business model is its network of key partnerships. These partnerships play a vital role in enabling the platform to provide comprehensive and reliable information to its users. TripAdvisor collaborates with various stakeholders, including hotels, restaurants, airlines, and other travel-related businesses.

By partnering with these entities, TripAdvisor gains access to a vast database of information, including hotel room availability, pricing, and customer reviews. These partnerships are mutually beneficial, as TripAdvisor offers increased visibility and exposure to its partner businesses, while also providing users with a one-stop platform for all their travel needs.

Key Activities

The key activities of TripAdvisor revolve around aggregating and curating travel-related information. The platform collects data from its partner businesses, including hotel and restaurant listings, user reviews, and ratings. TripAdvisor's team ensures the accuracy and reliability of this information through a rigorous verification process.

In addition to data collection, TripAdvisor also invests significant resources in maintaining and improving its website and mobile applications. This includes developing user-friendly interfaces, enhancing search algorithms, and implementing features that enhance the overall user experience.

Value Proposition

TripAdvisor's primary value proposition lies in its ability to provide users with reliable and comprehensive travel information. By leveraging its extensive network of partnerships and user-generated content, TripAdvisor offers a platform where users can access and compare hotel prices, read reviews, and make informed decisions about their travel plans.

The platform's value proposition extends beyond just information. TripAdvisor also offers a range of additional services, such as flight and hotel bookings, travel forums, and a personalized recommendation engine. These additional features aim to enhance the overall user experience and provide added convenience to travelers.

Customer Relationships

Building and maintaining strong customer relationships is crucial for TripAdvisor's success. The platform relies heavily on user-generated content, with millions of travelers sharing their experiences and opinions on hotels, restaurants, and attractions. This user engagement fosters a sense of community and trust among users, creating a valuable feedback loop that enhances the platform's reliability and credibility.

Furthermore, TripAdvisor emphasizes the importance of customer support and engagement. The platform provides various channels for users to seek assistance or provide feedback, ensuring that their concerns are addressed promptly. By prioritizing customer satisfaction, TripAdvisor aims to foster long-term loyalty and repeat usage.

The TripAdvisor Business Model Canvas provides a comprehensive overview of the key components that drive the platform's success. From its extensive network of partnerships to its focus on user-generated content and customer relationships, TripAdvisor has established itself as a leading platform for travel information and services. By continuously refining its business model and adapting to evolving user needs, TripAdvisor continues to thrive in the highly competitive travel industry.

Which companies are the competitors of TripAdvisor?

Expedia group.

One of the main competitors of TripAdvisor is Expedia Group. As a global travel technology company, Expedia offers a wide range of online travel services, including hotel bookings, flight reservations, car rentals, and vacation packages. Expedia operates several popular travel booking platforms, such as Expedia.com, Hotels.com, Orbitz, and Travelocity.

Booking Holdings

Booking Holdings, formerly known as Priceline Group, is another significant competitor of TripAdvisor. It is a leading provider of online travel and related services, connecting travelers with various accommodation options, flights, rental cars, and more. Booking Holdings owns and operates popular travel websites like Booking.com, Agoda, Kayak, and Priceline.com, catering to different types of travelers and offering competitive deals.

While not a traditional travel booking company, Airbnb has emerged as a strong competitor for TripAdvisor in the accommodation sector. Airbnb is an online marketplace that allows people to rent out their homes, apartments, or spare rooms to travelers looking for unique and personalized accommodations. With a vast inventory of diverse lodging options worldwide, Airbnb has gained popularity among travelers seeking a more authentic and local experience.

Although not exclusively a travel company, Google has become a significant player in the online travel market, posing a competitive challenge to TripAdvisor. Through its Google Travel platform, Google provides users with various travel-related services, including flight and hotel search, travel guides, and personalized recommendations. With its extensive reach and integration into other Google products, such as Google Maps and Google Search, the company has the potential to capture a significant share of the travel planning market.

Kayak, a subsidiary of Booking Holdings, is a travel search engine that helps users compare prices across multiple travel sites. It allows travelers to search for flights, hotels, rental cars, and vacation packages, providing a comprehensive overview of available options and prices. Kayak's user-friendly interface and advanced search features make it a popular choice for travelers looking for the best deals and convenient booking options.

As a leading online travel platform, TripAdvisor faces fierce competition from various companies in the industry. Expedia Group, Booking Holdings, Airbnb, Google, and Kayak are just a few of the notable competitors vying for the attention and loyalty of travelers worldwide. With each company offering unique strengths and different approaches to travel planning, the competition among these players continues to shape and drive innovation within the travel industry.

TripAdvisor SWOT Analysis

Large User Base: One of the key strengths of TripAdvisor is its massive user base, which consists of millions of travelers from around the world. This extensive user base enables the platform to gather a vast amount of data and reviews, providing users with a comprehensive and diverse range of opinions and insights.

Trusted Reviews: TripAdvisor has built a reputation for providing reliable and trustworthy reviews. Users can read authentic feedback from fellow travelers, helping them make informed decisions when planning their trips. This trust factor sets TripAdvisor apart from other review platforms and contributes to its strong brand loyalty.

Global Presence: With a presence in over 49 markets and offering content in 28 languages, TripAdvisor has established itself as a global leader in the travel industry. Its extensive reach allows travelers to access information and reviews for destinations and accommodations worldwide, making it a go-to resource for planning trips across different countries and cultures.

Diverse Offerings: In addition to user-generated reviews, TripAdvisor offers a wide range of features and services. These include flight and hotel bookings, vacation rentals, restaurant reservations, and travel forums. By providing a comprehensive suite of tools and resources, TripAdvisor aims to cater to all aspects of a traveler's journey, enhancing the overall user experience.

Quality Control Challenges: While TripAdvisor's user-generated content is one of its strengths, it can also be a weakness. The platform heavily relies on the authenticity and accuracy of user reviews, leaving room for fraudulent or biased submissions. Despite implementing verification systems, fake reviews can still slip through, potentially misleading users and impacting their trust in the platform.

Limited Control over Pricing: Although TripAdvisor allows users to compare prices and book accommodations and flights, it does not have direct control over the pricing set by hoteliers or airlines. This lack of control can result in inconsistencies and discrepancies in the prices displayed on the platform, potentially leading to dissatisfaction among users who expect accurate and up-to-date information.

Overreliance on Online Advertising: TripAdvisor heavily relies on online advertising as a revenue source. This dependence on advertising revenue can be a weakness, as shifts in the online advertising landscape or changes in user behavior could impact the platform's financial performance. Additionally, excessive advertising could negatively affect the user experience, leading to frustration and a decline in user engagement.

Opportunities

Mobile App Expansion: With the growing popularity of mobile devices, TripAdvisor has the opportunity to further expand its mobile app offerings. By enhancing the app's features and usability, the platform can tap into the increasing number of users who prefer to access travel information and make bookings on their smartphones. This expansion can help solidify TripAdvisor's position as a leading travel app and attract a wider audience.

Partnerships with Travel Industry Players: TripAdvisor has the potential to form strategic partnerships with airlines, hotel chains, and other travel industry players. Collaborations could allow for seamless integration of booking services, exclusive offers, and enhanced user experiences. By leveraging these partnerships, TripAdvisor can extend its reach and provide added value to its users, ultimately driving more traffic and revenue to the platform.

Competition from Other Review Platforms: TripAdvisor faces stiff competition from other review platforms, such as Google Reviews, Yelp, and Booking.com. These competitors offer similar functionality and have their own user bases, posing a threat to TripAdvisor's market share and user engagement. To stay ahead, TripAdvisor must continuously innovate and differentiate itself in terms of features, user experience, and reliability.

Changing Travel Industry Landscape: The travel industry is constantly evolving, influenced by factors such as geopolitical events, economic downturns, and shifts in consumer behavior. These changes can have a significant impact on the demand for travel services and the way people plan and book their trips. TripAdvisor must remain adaptable and responsive to these shifts in order to stay relevant and competitive in the ever-changing travel landscape.

Key Takeaways

TripAdvisor is owned by the Expedia Group, a leading online travel company.
The mission statement of TripAdvisor is to help people around the world plan and book the perfect trip.
TripAdvisor primarily generates revenue through advertising and partnerships with hotels, restaurants, and other travel-related businesses.
The Business Model Canvas of TripAdvisor involves providing a platform for users to share reviews, recommendations, and ratings, while also offering advertising opportunities for businesses.
The main competitors of TripAdvisor include platforms like Booking.com, Expedia, Google, and Yelp.

In terms of SWOT analysis, the strengths of TripAdvisor lie in its extensive user-generated content and its strong brand recognition. However, weaknesses include the potential for biased or unreliable reviews. Opportunities for TripAdvisor include expanding into new markets and diversifying its revenue streams, while threats include increasing competition and potential regulatory challenges in the travel industry.

In conclusion, TripAdvisor is a popular online travel platform that provides a wealth of information and reviews for travelers worldwide. While it is a publicly traded company, no single entity owns the majority of its shares. Its mission statement revolves around helping people plan and have the perfect trip, focusing on being the best travel companion.

TripAdvisor primarily generates revenue through advertising and partnerships with hotels, restaurants, and other travel-related businesses. This is evident in their business model canvas, which highlights key activities such as content creation, advertising, and customer relationship management. By offering a free platform for users and charging businesses for exposure, TripAdvisor has found a successful way to monetize its services.

Despite its dominance in the travel industry, TripAdvisor faces competition from other online travel agencies such as Expedia and Booking.com, as well as review platforms like Yelp and Google Reviews. These competitors constantly push TripAdvisor to improve its offerings and maintain its position as a trusted source for travel information.

In terms of strengths, TripAdvisor benefits from its vast user-generated content, extensive global reach, and strong brand recognition. However, it also faces weaknesses such as the potential for biased or inaccurate reviews and its dependence on advertising revenue. Opportunities for growth lie in expanding into new markets and diversifying revenue streams, while threats include intense competition and potential disruptions in the travel industry.

Overall, TripAdvisor has established itself as a key player in the travel industry and continues to evolve and adapt to the ever-changing needs of travelers. With its mission to provide valuable information and help people have unforgettable trips, TripAdvisor remains a go-to resource for travel enthusiasts worldwide.

What is SWOT analysis in tourism industry?

SWOT analysis is a strategic planning tool used in the tourism industry to evaluate the strengths, weaknesses, opportunities, and threats involved in a specific destination, tourism product, or tourism organization. It helps identify internal and external factors that can impact the success and competitiveness of the tourism industry.

Strengths: These are the unique characteristics or resources that give a competitive advantage to a tourism destination or organization. It may include natural attractions, cultural heritage, infrastructure, skilled workforce, strong branding, or favorable government policies.

Weaknesses: These are the internal factors that hinder the competitiveness or growth of a tourism destination or organization. It may include outdated infrastructure, lack of skilled workforce, limited marketing budget, poor customer service, or negative perception.

Opportunities: These are the external factors that can be leveraged to enhance the tourism industry's performance. It may include emerging markets, changing consumer preferences, technological advancements, new transportation routes, or government initiatives to promote tourism.

Threats: These are the external factors that pose challenges or risks to the tourism industry. It may include political instability, natural disasters, economic downturns, competition from other destinations, changing regulations, or negative media coverage.

By conducting a SWOT analysis, tourism industry stakeholders can gain valuable insights into their current position, identify areas for improvement, and develop strategies to capitalize on opportunities and mitigate threats. It helps in making informed decisions, developing effective marketing campaigns, improving service quality, attracting investment, and fostering sustainable tourism development.

What are the 4 quadrants of the SWOT analysis?

The four quadrants of the SWOT analysis are:

Strengths: Internal factors that give an advantage to an organization over its competitors. These can include resources, expertise, capabilities, brand reputation, and competitive advantages.

Weaknesses: Internal factors that put an organization at a disadvantage compared to its competitors. These can include lack of resources, poor management, outdated technology, limited market presence, or any other internal limitation.

Opportunities: External factors that could be favorable to an organization's growth or success. These can be new market trends, changes in legislation, emerging technologies, untapped customer segments, or any other external factor that could provide an advantage.

Threats: External factors that could hinder an organization's growth or success. These can be new competitors entering the market, changing consumer preferences, economic downturns, regulatory changes, or any other external factor that poses a risk to the organization.

What are 3 examples of opportunities in SWOT analysis?

Market expansion: SWOT analysis can help identify opportunities for businesses to expand into new markets or target new customer segments. For example, a clothing retailer may identify an opportunity to expand into the online market and reach a wider customer base.

Technological advancements: SWOT analysis can highlight opportunities arising from technological advancements. For instance, a software company may identify an opportunity to develop a new product or service utilizing emerging technologies such as artificial intelligence or blockchain.

Changes in regulations or policies: SWOT analysis can help identify opportunities that arise from changes in regulations or policies. For example, a renewable energy company may identify an opportunity to expand its operations due to favorable government policies and incentives promoting clean energy sources.

How can I find a SWOT analysis on a company?

There are several ways you can find a SWOT analysis on a company:

Company website: Start by checking the company's official website. Some companies publish their own SWOT analysis in their annual reports, investor presentations, or corporate responsibility sections.

Business databases: Utilize business databases such as Bloomberg, Hoovers, or MarketResearch.com. These platforms often contain SWOT analyses or industry reports that include SWOT analysis for various companies.

Financial websites: Websites like Yahoo Finance, MarketWatch, or Reuters often provide financial analysis of companies, which may include a SWOT analysis or discussions about the company's strengths, weaknesses, opportunities, and threats.

Business news sources: Look for news articles or reports from reputable business news sources such as Forbes, Bloomberg, or CNBC. These sources often provide insights and analysis on various companies, which may include SWOT analysis.

Academic journals and publications: Search academic databases like JSTOR, EBSCO, or Google Scholar for research papers, case studies, or academic publications that discuss the company you are interested in. These sources may include SWOT analysis as part of their analysis.

Industry reports: Check industry-specific reports from consulting firms, market research companies, or industry associations. These reports often contain SWOT analysis for major companies within the industry.

Remember, while searching for a SWOT analysis, it is important to consider multiple sources and ensure that the information is recent and reliable.

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Elsevier - PMC COVID-19 Collection

An analysis of the competitiveness of the tourism industry in a context of economic recovery following the COVID19 pandemic

José antonio salinas fernández.

a Dpt. of International and Spanish Economy, Universidad de Granada, c/ Paseo de Cartuja, 7, 18011 Granada Spain

José Manuel Guaita Martínez

b Department of Economics and Social Sciences, Universitat Politècnica de València, c/ Camino de Vera s/n, 46022 Valencia Spain

José María Martín Martín

Business activities within the tourism industry are especially suffering from the consequences of the COVID19 pandemic. Those countries whose economy depends largely on tourism will experience a troublesome situation for years to come. Their return to a normal situation will be conditioned by the competitiveness of their tourism sector. The study begins by pinpointing the countries that have been more hardly stricken by the pandemic and in which tourism accounts for a greater share of the GDP. A comparative analysis of the competitiveness of these countries with that of world-leading countries will be carried out so as to conclude which will face the recovery period in a more vulnerable situation. The measurement of tourism competitiveness will be supported by the creation of a synthetic indicator based on the P 2 distance method. A group of 13 countries has been identified as the most vulnerable, and it is advisable to act urgently in the following areas: the promotion of cultural elements and the historical and artistic heritage, the protection of natural areas, the availability of information and communication technologies, the international openness of the destination, and the availability of transportation infrastructures and tourist services.

1. Introduction

COVID-19 was officially declared a pandemic by the World Health Organization (WHO) on March 12, 2020. This pandemic has had significant impacts on the global economy, as a result of the containment measures adopted ( Sigala, 2020 ). One of the most affected sectors has been tourism, at the end of December 2020 it was confirmed that international tourist arrivals fell by 72% in the first ten months of 2020 ( UNWTO, 2020 ). The tourism industry has traditionally been highly sensitive to socio-economic, political and environmental risks, yet it is also a very resilient industry ( Novelli, Gussing, Jones and Ritchie, 2018 ; Jiménez, Martín and Montero, 2014 ). It is true that, in recent decades, the tourism industry has faced several crises —terrorism, earthquakes, Ebola, SARS, Zika— but it is understood to some extent that the current crisis is not comparable to those mentioned. The reason behind this is that, in previous pandemics, mass tourism was not developed in the way it is today and it was not until the 1960s that it became a global phenomenon ( Menegaki, 2020 ). Additionally, a number of health crises that have affected the tourism industry in recent years, such as SARS, did not develop into a pandemic ( Chen, Jang and Kim, 2007 ; Henderson and Ng, 2004 ). The unfolding events make us think that this crisis, besides being different from the previous ones, can bring about deep long-term changes in tourism ( Sigala, 2020 ). Some researchers have pointed out that a crisis like this may lead to the emergence of nationalist sentiments or a rejection of foreigners ( Donthu and Gustafsson, 2020 ), even fear associated with the transmission of pathogens by tourists ( Hall, 2020 ; Seong and Hong, 2021 ). In this regard, media broadcasting can influence the behavior of tourists and citizens’ attitudes during the recovery process. ( Kantar, 2020 ).

Based on the scientific production on the impact of Covid-19 on economic activities, three main lines of research can be defined: "Changes in society's consumption habits", "Impact on the public health management model" and "Economic effects of Covid-19 on business organisations" ( Carracero et al., 2021 ). The far-reaching changes that the tourism industry is undergoing and the expected long -term repercussions point towards a major economic impact. The decrease in tourism activity is expected to be the most intense in history, seven times greater than that resulting from the September 9 th terrorist attacks ( UNWTO, 2020 ). This impact, although unpredictable, derives from the great importance of tourism as an economic activity for many countries, given that it is a great source of employment and wealth: 1 out of every 10 jobs are directly or indirectly related to tourism ( UNWTO, 2020 ) and responsible for 10.3% of the world's GDP ( WTTC, 2020 ). This figure is much higher in the countries that have turned this activity into the center of their development strategy, which has resulted in a great dependence upon such an activity ( Martín, Salinas, Rodríguez and Ostos, 2020 ; Martín and Guaita, 2019 ). The strong growth of tourism at an international level ( Gómez-Vega and Picazo-Tadeo, 2019 ), has made this activity surpass economic sectors that had traditionally been the economic backbone of some countries ( Mendola and Volo, 2017 ). In fact, tourism plays a central role in the development strategies of many developing countries ( Joshi, Poudyal and Larson, 2017 ; Martín, Guaita and Burgos-Mascarrell, 2019 ). As such, the collapse of tourism as a result of the pandemic and its consequences in the medium and long term will strongly impact the economies that are highly dependent on tourism.

The competitiveness of the tourism sector in each country determines the strength of this activity, its capacity to attract flows of visitors, and, ultimately, its ability to generate wealth ( Guaita, Martín and Salinas, 2020 ). Therefore and, now more than ever, the degree of competitiveness of the different countries will be key for the recovery of the tourism industry. The pandemic has increased the gap between countries and it is expected that those with a better competitiveness will be facing the outcome of the pandemic with greater guarantees ( Sigala, 2020 ). This paper focuses on this issue, as it aims to identify which countries are the most vulnerable in view of the crisis in the tourism industry and the expected recovery. To this end, we will use three separate datasets: the weight of tourism in the country's economy, the impact of COVID19 in the country, and the degree of competitiveness of its tourism industry. This analysis will make it possible to point out the main weaknesses of the countries in terms of tourism competitiveness, but it also proposes to identify the dimensions of competitiveness on which the most vulnerable tourism destinations should focus their efforts in order to improve their position. This analysis, not carried out so far, offers a valuable contribution to the academic literature as well as contributing to the improvement of the knowledge needed for the recovery phase. In relation to previous academic literature, this analysis provides the first assessment of tourist destinations by comparing the data on competitiveness, the weight that tourism has on their GDP and the impact of the pandemic. This study identifies the specific areas that need strengthening in order to improve the situation of the most vulnerable countries. This is an entirely new contribution to the literature, as well as the way in which this analysis is carried out. In particular, it is based on a synthetic DP2 indicator designed to measure tourism competitiveness. This study provides both a framework for future analysis and an opportunity to monitor the situation. It also offers a clear contribution to the academic literature on the vulnerability of tourist destinations and their recovery after crisis situations. This can be of great use in defining public policies to strengthen the situation of the most vulnerable destinations, even ahead of crisis situations.

Measuring tourism competitiveness is a controversial and complex issue ( Abreu-Novais, Ruhanen and Arcodia, 2018 ; Salinas, Serdeira, Martín and Rodríguez, 2020 ). Several proposals have been made without a clear consensus ( Mazanec and Ring, 2011 ). In this work, we have chosen to measure tourism competitiveness based on the pillars indicated by the Travel & Tourism Competitiveness Index (TTCI) ( World Economic Forum, 2017 ). Although the final model for aggregating information is based on the P 2 Distance (DP2) method defined by Pena (1977) . This method allows for the creation of a synthetic indicator that overcomes many of the problems associated with this kind of procedure ( Rodríguez, Martín and Jiménez, 2018 ) and has been used in several studies related to the tourism industry (Rodríguez, Aguilera, Martín and Fernández, 2018 ). Based on this proposal, two research questions are posed. RQ1: Which countries are the most vulnerable in a context of crisis in the tourism industry? RQ2: In what dimensions of competitiveness should they work to improve such a situation? This will help to bridge the research gap identified in the academic literature, which advises to conduct studies that include proposals to manage this crisis ( Sigala, 2020 ). Academic research should provide useful information on the necessary transformations to be made in the tourism sector so as to address the sanitary crisis ( Lew, 2020 ).

The paper is structured as follows: first, after outlining the research gap and the research questions in the introduction, a review of the academic literature on the role of competitiveness in the tourism industry is provided. Next, we describe in detail the methodology used to create the synthetic indicator and the procedure to determine which variables offer the greatest discriminatory power. In the following section, we report on the results obtained in accordance with the initial objectives. Finally, the conclusions section presents the implications of the results of the study, its limitations, recommendations, and future lines of research.

2. Competitiveness as a vaccine for the crisis of the tourism industry

Once acknowledged the historical crisis that the tourism industry is and will continue to experience, some authors point it out as a transformative opportunity ( Mair, 2020 ). As seen in other sectors, tourism should be re-imagined and reshaped for the new normal ( McKinsey and Company, 2020 ). Crises can be a trigger for change, but no crisis has meant to date a significant transitional event for tourism ( Hall, Scott and Gössling, 2020 ). It is estimated that the tourism industry has lost 2.7 trillion USD in 2020. The most affected region is Asia-Pacific, with 63.4 million jobs lost. In Europe, job losses are estimated at 13 million ( European Data Portal, 2020 ). We can expect the pandemic to have a more lasting effect on international tourism, while other sectors will recover more quickly. Things will be especially sensitive in the countries whose economies are highly dependent on tourism, where it is crucial to monitor the situation closely and implement measures to protect this industry and mitigate the impact of the crisis ( European Data Portal, 2020 ). Therefore, it is important to generate helpful knowledge in order to promote transformations that strengthen the tourism sector and make it more competitive, otherwise it will simply be hit by successive crises ( Lew, 2020 ; Sigala, 2020 ). The crisis derived from this pandemic is highlighting weaknesses and bad practices in the tourism industry; indeed, the way in which its effects are felt could be associated with the characteristics of the growth model itself ( Ötsch, 2020 ). The chain of events that has occurred since the beginning of the crisis can be traced back to processes of large-scale urbanization, changes in the environment, and a highly interconnected world, among others (Allen, Murray, Zambrana-Torrelio, Morse, Rondinini, Di Marco, Breit, Olival, and Daszak, 2017 ). The future of the tourism industry is uncertain, given that the real impact of the pandemic in the medium and long run has yet to be determined. It is possible that a feeling of rejection towards tourism and the tourists themselves may arise from sanitary concerns. ( Donthu and Gustafsson, 2020 ; Hall, 2020 ; Seong and Hong, 2021 ). Hence the importance of planning adequate and effective recovery policies that address aspects related to the very nature of this pandemic, which is different from previous crises in the sector ( Strielkowski, 2020 ; Lew, 2020 ). In fact, one of the main lines of research that has gained momentum in the context of the pandemic focuses on the study of its economic impact ( Carracero et al., 2021 ). Therefore, at this point in time, the revival of the tourist activity is highly conditioned by the attitude of citizens and tourists ( Sigala, 2020 ; Seong and Hong, 2021 ). This differs from what has been observed in other periods of recovery, when tourist activity was linked only to economic recovery. Current forecasts point to the beginning of the recovery in the second half of 2021 ( UNWTO, 2020 ), as conditioned by the speed of vaccination and the effects of potential variants of the virus. The duration of the crisis may require profound changes in the sector, improvements in sanitation protocols and a strengthening of communication ( Chang et al., 2020 ), something for which the most competitive destinations will be better prepared. In fact, this paper's initial hypothesis assumes that: destinations that are more competitive will face the recovery in better conditions.

Bearing in mind the above, the years marked by the pandemic and the coming years after the start of mass vaccination campaigns will be extremely negative for the tourism sector. Such years will put the competitiveness of the countries to test, as it will have much to say in the race for recovery among countries. In order to progress on improving competitiveness, this concept must be correctly understood. Although it is a widely analyzed concept, there is a great deal of controversy surrounding its definition ( Mazanec, Wöber and Zins, 2007 ). The fact that there are numerous factors influencing the competitiveness of a destination makes it difficult to come up with a definition ( Gooroochurn and Sugiyarto, 2005 ; Croes and Kubickova, 2013 ). The different definitions proposed have focused on a number of aspects associated with the competitiveness of a destination. Thus, a destination will be more or less competitive depending on its ability to generate long-term benefits ( Buhalis, 2000 ), to maintain a favorable market position ( Hassan, 2000 ) and increase the economic welfare of the population ( Crouch and Ritchie, 1999 ). An updated perspective of competitiveness, which serves as a reference for this study, identifies tourism competitiveness as the optimization of the destination's resources, allowing for its development in a way that is compatible with the well-being of the locals and the preservation of resources ( Dupeyras and MacCallum, 2013 ; Martín, Guaita, Molina and Sartal, 2019 ). These same authors identify competitiveness with the optimization of the destination attractiveness, so as to gain market share. Based on this perspective, this paper analyzes the best optimization of resources for an appropriate development of tourism.

The analysis of tourism competitiveness, and therefore the assessment of the countries' situation, should consider the following dimensions: attractiveness and satisfaction with the destination, economic dimensions, dimensions associated with the well-being of the local population and sustainability ( Abreu-Novais et al ., 2018 ). In a context where it is key to reflect on the most appropriate strategies to gain in competitiveness, it is necessary to identify the factors that foster it ( De Castro, Fernández, Guaita and Martín, 2020 ; De Castro, Pérez-Rodríguez, Martín and Azevedo, 2019 ). The academic literature has described numerous factors that influence competitiveness, such as the following: basic resources and attractions, culture and the historical-artistic heritage, geography, climate or the planning of cultural or leisure events, tourism destination accessibility, transport and accommodation infrastructures, services for tourists, the willingness of the political authorities to implement a tourism-developing strategy, strategic management of the destination, human resources, service quality, marketing policies, investment-seeking, research and data treatment, international image, the level of security and safety, its location and proximity to other destinations, the cost-benefit relation, the carrying capacity, healthcare, political stability, socioeconomic relations with markets, cultural and religious matters, language, hospitality of the local residents, service excellence, quality experiences, the participation and involvement of all public and private agents in an efficient manner, the existence of continuous and transparent channels of communication, the balance between involvement and benefits for stakeholders, information management, tracking and monitoring competitiveness indexes, sustainable development policies, global strategic and marketing management, resources created by men, private competitiveness, government support, tourism demand-awareness, perception and preferences, among others (Ritchie and Crouch, 2003, 2010 ; Crouch and Ritchie, 2005 ; Heath, 2003 ; Dwyer and Kim, 2003 ). Although a long list of factors have been identified as influencing tourism competitiveness, there is no general consensus as to which are the most important ( Crouch, 2011 ).

If the definition of tourism competitiveness is not a simple task, even less so is its analysis. In the context of a crisis in the tourism industry —and subsequent recovery— it seems important to measure the level of competitiveness. At the same time, it is important to analyze which elements contribute to increasing the overall level of competitiveness, so that recovery policies take these factors into account and optimize resources ( Barbosa, Oliveira and Rezende, 2010 ). The problem of this type of analysis lies in the large number of variables that must be handled, some qualitative and others quantitative ( Kozak and Rimmington,1999 ; Guaita, de Castro, Pérez-Rodríguez and Martín, 2019 ). Usually, measuring tourism competitiveness has been based on the construction of synthetic indicators, which integrate the information of the variables with which we work ( Croes and Kubickova, 2013 ). The problems in this respect are related to the selection of the variables to be included and how they are aggregated, the availability of data, and the weighting of each variable. One of the most widespread proposals for analysis was issued by the World Economic Forum, which calculates the Travel & Tourism Competitiveness Index every year (TTCI). This synthetic indicator is made up of 90 variables organized in 14 pillars. One of the shortcomings of this methodology is that it assigns the same weight to all variables, regardless of their importance or impact. In addition, this methodology does not reveal which factors have the strongest influence on the improvement of competitiveness, something that this work aims to accomplish. In this sense, several authors have noted the importance and usefulness of highlighting the factors that drive competitiveness ( Abreu-Novais et al ., 2018 ).

3. Methodology

Three data sets were used. First, the data needed to construct the synthetic indicator of tourism competitiveness (TTCI), provided by the World Economic Forum (WEF) in the 2019 edition. It provides 90 variables in total, all of which have been used for this study. The second data set refers to the impact of COVID19 in each country. The official data from the European Centre for Disease Prevention and Control, up-to-date at the time of writing, were used for this purpose. These data reflect the cumulative incidence of the number of infected persons in relation to the country's population. The last set of data refers to the weight of the tourism industry in each country's GDP. Again, the data have been obtained from the WEF, and indicate the weight of tourism and transportation services in the total GDP of each country.

3.1. The DP 2 synthetic indicator

In this paper, Pena's P 2 distance method ( 1977 ) will be used to build a synthetic indicator of tourism competitiveness. In doing so, we will be able to classify a group of 80 countries whose tourism industry has a relevant presence in their economy. This indicator will identify the countries with the greatest vulnerability in the short and medium term, as a result of a higher number of cases of COVID-19 and for registering low levels of tourism competitiveness. The DP2 synthetic indicator —based on Ivanovic's (1974) distance— was developed by Pena (1977) by modifying the weighting of simple variables. To do so, the correlation coefficient was replaced by the determination coefficient, which operates as a corrective factor. As Somarriba and Pena (2009) point out the main advantages of the DP 2 synthetic indicator, compared to other aggregation methods such as Principal Components Analysis (PCA) or Data Envelopment Analysis (DEA), are: it eliminates the redundant information that simple variables incorporate when integrated into a synthetic indicator, it also avoids the arbitrary assignment of weights to simple variables, and solves problems related to the addition of variables expressed in different units ( Ribeiro-Navarrete, Marqués-Palacios, Martín and Guita, 2021 ). This methodology can be consulted in detail in Pena's ( 1977 ; 2009 ), Zarzosa's (1996 ; 2005 ) and Somarriba's ( 2008 ) publications and has been used by many researchers since then. Among the extensive collection of works that have used the P 2 distance method to construct synthetic indicators, those focused on welfare, quality of life, and economic and social development are the most relevant. However, in recent years, new applications have emerged in other fields or subjects, including tourism, mainly applied to the measurement of seasonality, sustainability, and competitiveness of tourist destinations. Among these works we find those of Pérez et al. (2009) , Lozano-Oyola et al. (2012) , Martín et al. (2017 , 2019 , 2020 ), Guaita et al. (2019) and Salinas et al (2020) .

Since one of the aims of our work is to measure the competitiveness of tourist destinations, the DP 2 synthetic indicator is best suited to determine the differences at a country level, since the deviation to a minimum is used as distance. This means that each country will be compared with a hypothetical baseline reference; that is, an imaginary country that shows the minimum value for all the variables —or simple indicators— thus yielding a value of zero on the DP 2 synthetic indicator. To solve the problem of variables expressed in different units of measurement, the standard deviation is used, converting them into abstract units ( Somarriba and Zarzosa, 2016 ).

According to Pena (1977) , the DP 2 indicator for a j th country is as follows:

X ij is the value of i th variable in the j th country .
d ij = ࣦ x ij – x i* ࣦ is the difference between the value taken by i th variable in the j th country and the minimum of the i th variable in the whole set of countries.
n is the number of variables.
σ i is the standard deviation of i th variable.
R i , i −1, i−2, ……, 1 2 , is the determination coefficient in the regression of variable x i over x i -1, x i-2 , ….., x 1 already included, where R 1 2 = 0.

By using the determination coefficient ( R i , i − 1 . i − 2 , … 1 2 ) , we are measuring the proportion of the total variance of the variable x i explained by the linear regression with respect to the variables x i-1 , x i-2 ,…., x 1 , which are previously integrated in the synthetic indicator. As a result, Pena (1977) defined the "correction factor" as ( 1 − R i , i − 1 . i − 2 , … 1 2 ) , with the purpose of eliminating the duplicated information produced by the simple variables when they enter the synthetic indicator with respect to the preceding variables, due to the existing correlation between them. As Somarriba, Zarzosa and Pena (2015) report, the DP 2 indicator only includes the new information provided by each variable or simple indicator, eliminating that which is redundant. Therefore, the correcting factors act as weights for the variables, avoiding the need to assign weights arbitrarily. If there were no correlation between the variables, the weighting of these within the synthetic indicator DP 2 would be identical. Pena's works in 1977 and 2009 show that the DP 2 synthetic indicator verifies all the mathematical properties demanded by aggregation methods. For these properties to be fulfilled, all the simple variables must progress in the same direction, so that an increase in their value always means an improvement in the objective they intend to measure, in our case, tourism competitiveness. For this purpose, the variables whose increase implies a worsening of competitiveness must be multiplied by -1 before being incorporated into the synthetic indicator. The calculation of the DP 2 indicator follows an iterative process, whereby the entry of variables or partial indicators is ordered according to the amount of information they provide with respect to the phenomenon to be measured. To do this, the absolute correlation coefficient of each variable is used in relation to the constructed synthetic indicator, ordering the variables from highest to lowest correlation, following a series of iterations until a convergence is reached in the values of the DP 2 synthetic indicator, as described by Zarzosa (1996 and 2005 ).

3.2. Discrimination power of the variables and amount of individual relative information provided to the DP2 synthetic indicator

In addition to measuring the level of competitiveness of a group of tourist destinations, another important contribution of this methodology is the possibility of identifying the variables that provide greater individual relative information to the DP2 synthetic indicator. In so doing, it is possible to identify which dimensions of competitiveness are more decisive for explaining the variability of the indicator between the countries analyzed and, consequently, implement specific policies to make the tourist destination more competitive ( Rodríguez, Martín and Salinas, 2019 ). In order to calculate the amount of individual relative information provided by the variables, it is necessary to previously determine their discrimination power. For this purpose, we will use Ivanovic's Discrimination Coefficient (1974) , which expresses the degree of inequality in the distribution of the values of each simple variable for the 80 selected countries. It is defined as follows:

m is the number of countries in the set P

x ji is the value of the variable X i in country j and x li is the minimum value taken by variable X i in country l

m ji is the number of countries where the value of X i is x ji

X ¯ i is the average of X i

k i is the number of different values that X i takes in the set P.

The "Ivanovic-Pena Global Information Coefficient" is then calculated, combining the Ivanovic Discrimination Coefficient ( 1974 ) and the Pena correction factor ( 1977 ). With this coefficient, it is possible to know the global information provided by the simple variables to the synthetic indicator DP2, defined as

where n is the total number of variables —or partial indicators— DCi is Ivanovic's discriminant coefficient and (1- R i , i − 1 , i − 2 , . . . . . . , 1 2 ) is Pena's correction factor.

Finally, in accordance with Zarzosa (1996) , we define the “individual relative information coefficient” as:

This coefficient measures the relative weight of each simple variable included in the DP 2 synthetic indicator, considering both the useful information provided by each variable and its discrimination power. The values range from 0 to 1, allowing the identification of the variables that contribute most to explaining the differences between countries in the measurement of a pre-established objective ( Rodríguez, Jiménez, Salinas and Martín, 2016 ).

3.3. The process of construction of the TTCI according to the P 2 distance method

The synthetic indicator of tourism competitiveness proposed in this study follows a two-step construction process, as described in Salinas et al . (2020) . The goal is to integrate every useful piece of information provided by the 90 variables that make up the Travel & Tourism Competitiveness Index, featured in the last report published by the World Economic Forum in 2019. The data have been downloaded from the website of this organization; whose link can be found in the bibliography ( World Economic Forum, 2019 ).

In a first stage, we have developed the partial synthetic indicators corresponding to each of the 14 pillars that make up the TTCI by taking into account all the simple variables and in accordance with the P 2 distance methodology. In a second stage, a synthetic global indicator of tourism competitiveness has been constructed, named Travel & Tourism Competitiveness Index - DP 2 (TTCI-DP2), which integrates the 14 pillars previously calculated with the same methodology. Likewise, we calculated the coefficients of individual relative information for all the variables that comprise both the partial synthetic indicators of the 14 pillars and the global synthetic index of tourism competitiveness TTCI-DP 2 . This has allowed for the identification of the key variables of competitiveness, which will have to be emphasized so as to improve the competitive situation of tourist destinations.

4. Results and discussion

Following the methodology described above, a synthetic indicator of tourism competitiveness (TTCI-DP 2 ) has been calculated for a total of 80 countries, all of which hold top positions in the international ranking. Therefore, tourism and traveling have a relevant impact on their GDP. The advantages of the indicator created in comparison with WEF's TTCI reside in the greater precision in measuring the level of competitiveness of tourism destinations, as it only takes in the non-redundant information of the simple variables and avoids the arbitrary weighting of the same. Table 1 shows the pillars or dimensions of tourism competitiveness, which represent the variables forming part of the synthetic indicator. These variables follow an entry order that is determined by the values of the absolute correlation coefficients, ordered from highest to lowest. Likewise, Table 1 also shows the corrective factors, which reveal the new, non-redundant information provided by the variables when entering the synthetic indicator with respect to previous ones. As can be seen, pillar 5 "ICT readiness" enters first into the synthetic index with the highest correlation coefficient, which means that 100% of the information provided by this variable is incorporated into the TTCI-DP2. The rest of the variables contribute less information to the synthetic indicator, although in no case is their contribution less than 30%. The pillars that contribute more new information when entering the synthetic indicator are "P7. International openness" (72.24%) and "P2. Safety and security" (63.52%), while in last place is "P1. Business environment" (30.97%).

Structure of the Travel & Tourism Competitiveness Index - DP 2

Source: own elaboration

Once the structure of the TTCI-DP 2 indicator has been examined, the following step is to determine which are the pillars or dimensions that explain, to a greater extent, the differences in tourism competitiveness of the countries. For this purpose, the Individual Relative Information Coefficient (α), defined by Zarzosa (1996) , will be calculated. This coefficient combines the useful information provided by each variable —through corrective factors— to the synthetic indicator with their discrimination power, as calculated by Ivanovic's Discrimination Coefficient. Table 2 shows the values of the Individual Relative Information Coefficient for each of the 14 pillars of competitiveness analyzed. Such a coefficient determines the importance of each pillar in the TTCI-DP2. As can be seen, the first seven pillars contribute a total of 75.6% of individual relative information to the synthetic indicator, while the remaining seven only contribute 24.4%. Therefore, the differences in competitiveness of the countries whose tourism sector accounts for the largest share of GDP are explained, to a greater extent, by the first seven dimensions. Consequently, these dimensions are key factors in the design of policies, strategies and measures to improve the competitiveness of tourism destinations.

Coefficient of individual relative information contributed by each pillar to the TTCI-DP 2 .

Source: own elaboration.

The two most relevant pillars are related to the supply of cultural (pillar 14) and natural resources (pillar 13) available at the destination. Table 3 shows in detail which variables make the greatest individual relative contribution to each pillar. Regarding Pillar 14, it is important for tourist destinations to have "Oral and intangible cultural heritage" and a high number of "World Heritage cultural sites", while in Pillar 13, the presence of "World Heritage natural sites" and protected natural areas is fundamental.

Contribution of information by variable to the key pillars of competitiveness in the TTCI-DP 2 indicator.

The next pillars that best explain the variability of the synthetic indicator TTCI-DP 2 are related to the availability of information and communication technologies (ICT), to the international openness of the destination and to the supply of transportation infrastructure and tourist services. In Pillar 5 "ICT readiness", the variables "Individuals using Internet", "Active mobile broadband Internet subscriptions" and "Fixed broadband Internet subscriptions" are decisive, which together explain more than 70% of the differences between the countries analyzed. In "P7. International openness", the "number of regional trade agreements in force" is key, as this variable contributes almost 50% of the information related to the synthetic indicator of this pillar. The territorial differences in "P12. Tourist service infrastructure" are mainly explained by the variables "Presence of major car rental companies" and "Hotel rooms", which together contribute slightly over 60% of the total information of this pillar. Then, there are two pillars related to land and port (pillar 11) and air transportation infrastructures (pillar 10). The determining variables in Pillar 11 have to do with rail network density and the efficiency of land transportation. In Pillar 10 stand out those related to the capacity of airlines to transport passengers, both domestically and internationally, and to the number of aircraft departures. The information provided in Tables 2 and and3 3 allows for the identification of the pillars or dimensions that most influence the level of tourism competitiveness of destinations, as well as the particular variables to be addressed to help countries climb up the international rankings and become more competitive.

The analysis will now focus on identifying which countries are more vulnerable in the short and medium term, as they have suffered more intensely the effects of COVID-19 and have a more tourism-dependent economy. To this end, we took into account at the same time the virus incidence —in terms of cumulative number of cases per million inhabitants up to December 31 st , 2020— with the relevance of tourism in the economy of the country and with the degree of tourism competitiveness, as measured by the synthetic indicator TTCI-DP 2 . Countries whose economies are more tourism-dependent, have suffered a greater impact from COVID-19 and have a medium or low level of competitiveness will find it more difficult to return to their previous growth and employment rates in the coming years, which places them in a more vulnerable position.

The impact of the pandemic on the countries analyzed has been measured by setting a threshold of 10,000 cases per million inhabitants; above this level, the incidence is considered high. As for tourism, it is considered that its contribution to the economy is medium-high when its weight exceeds 5% of GDP. Finally, in order to classify countries according to their level of tourism competitiveness, the average of the synthetic indicator TTCI-DP 2 has been taken as a reference value, namely 21.01 points, so that those countries above that figure will be the most competitive. Based on these criteria, Table 4 has been created. It shows 8 groups of countries according to their degree of vulnerability. Similarly, Table 5 in the Annex shows the complete ranking of the 80 countries selected, according to their level of tourism competitiveness and the vulnerability group in which they fall. These 80 countries account for 95% of the industry production out of a total of 140 countries included in the latest edition of the Travel & Tourism Competitiveness Report, as well as hosting 91% of international tourist arrivals ( World Economic Forum, 2019 ). As shown in Table 4 , 13 countries with very high vulnerability and 31 countries with medium-high vulnerability have been identified. The rest of the countries are in a more favorable position with regard to the recovery of tourism activity, as their degree of vulnerability is relatively low.

Criteria for classifying countries according to their degree of vulnerability when facing the recovery of the tourism industry

Classification of countries in Travel & Tourism Competitiveness Index - DP 2 and degree of vulnerability to recover tourism activity

Source: World Economic Forum – TTCI Report 2019 (T&T share of GDP). European Centre for Disease Prevention and Control (COVID-19 cases). The authors.

Among the 13 most vulnerable countries are Mexico and Morocco, two of the tourist destinations that receive the most international travelers (around 40 and 11.5 million per year, respectively), and whose tourism sector accounts for more than 8% of their GDP. The tourism industry of three other countries has a significant presence in their economy, such as Cape Verde (18.39% of GDP) and Montenegro and Georgia, where tourism accounts for more than 10% of their GDP. Tunisia and the Dominican Republic, which receive 6-7 million international travelers every year, are also worth mentioning. The remaining six countries with the greatest vulnerability (Albania, Bahrain, Honduras, Jordan, Lebanon and Panama) receive less than 5 million international travelers per year, although the weight of tourism in their GDP ranges between 5 and 10%. In the medium-high vulnerable countries, there are some of the world's main tourist destinations in terms of the number of international arrivals and, although they occupy the top positions in the world ranking of competitiveness, their vulnerability is due to the fact that they have been strongly affected by the pandemic. Given that the tourism industry also has a significant weight in the GDP of these countries, they are expected to experience a slow recovery due to the mobility restrictions imposed to control the spread of the coronavirus. It is worth mentioning in this group the European Mediterranean countries (Spain, Italy, Greece, Portugal, Croatia and Malta), as well as Austria and the United Arab Emirates. Other relevant tourist destinations, which stand out in terms of number of international arrivals and exhibit medium-high vulnerability, are Egypt, the Russian Federation, Saudi Arabia, South Africa, Turkey, Vietnam, Seychelles, Cambodia, Philippines, and Jamaica should also be mentioned for the considerable weight of their tourism sector in GDP.

In addition to identifying the countries that show the greatest vulnerability to recover economic activity derived from tourism in the short and medium term, it is essential to examine toward which pillars or dimensions of tourism competitiveness these countries should devote the greatest efforts in order to become more competitive at the international level. Undoubtedly, only those destinations that reinforce their competitiveness will be able to face the difficult recovery of the tourism industry in the coming years. Figure 1 shows the degree of competitiveness of the most vulnerable countries for each of the 14 pillars included in the ITPGR-DP 2 .

Degree of competitiveness, by pillar, of the most vulnerable countries (Percentage reached with respect to the maximum value recorded for each pillar).

For each pillar, the average value of the most vulnerable countries has been calculated, divided by the maximum value recorded in each pillar and expressed as a percentage. As the data reveal, the most vulnerable countries perform worse in the key pillars of competitiveness, as shown in Table 2 , most of them scoring below 60%. The greatest distance from the maximum value is found in the pillars "P14. Cultural resources and business travel" (15.1%); "P10. Air transport infrastructure" (29.3%), and "P13. Natural resources" (40.6%). Therefore, these countries should focus on developing policies aimed at improving the worst aspects of the pillars that have the greatest impact on the competitiveness of tourism destinations. To do so, countries should prioritize improving the indicators shown in Table 3 , since they are the ones that explain the greatest territorial differences in each pillar.

5. Conclusions

As a consequence of the COVID-19 pandemic, the tourism industry has been significantly affected. This crisis situation is expected to continue in the medium and long term, so those countries where tourism is one of the main sources of income will take longer to recover. The impact on economies will depend partially on the competitiveness of each country's tourism sector. The most competitive destinations will be in a better position to face the recovery process and will even be more robust in withstanding the crisis. This situation can generate an opportunity, as long as tourist destinations opt for improving their competitiveness and move towards a transformation that will make them stronger. Thus, identifying the most vulnerable countries and the variables that explain their vulnerability is a very interesting contribution to support crisis response policies. This study focuses on such an objective. Basically, it seeks to identify the most vulnerable countries as regards their tourism industry in the context of a pandemic. This pioneering contribution to the academic literature will make it possible to understand the character of these countries' vulnerability and thus facilitate the development of public policies to promote tourism. Therefore, this research, in addition to being innovative, is of great social utility.

The proposed study has grouped countries according to their vulnerability. Said vulnerability is determined by combining several characteristics: low competitiveness, a high incidence of COVID19 and a high weight of tourism in its economy. As a result, we have identified the 13 most vulnerable countries, namely: Panama, Georgia, Bahrain, Morocco, Montenegro, Albania, Mexico, Dominican Republic, Jordan, Tunisia, Cape Verde, Honduras, and Lebanon. This answers RQ1: Which countries are the most vulnerable in the context of the crisis in the tourism sector? It should be borne in mind that maximum vulnerability is reached when the country is highly dependent on tourism activity, has poor levels of competitiveness and a high incidence of the pandemic. The countries mentioned above comply with these criteria, so that the most effective action in the short term would be to control the incidence of the pandemic and improve tourism competitiveness, since diversification policies would take longer to be effective.

These countries show a very negative situation in the pillars or dimensions that have been identified as key to tourism competitiveness, most of them being below 60% with respect to the value achieved by the best positioned country. The pillars with the greatest distance in relation to the maximum value are "P14. Cultural resources and business travel" (15.1%); "P10. Air transport infrastructure" (29.3%), and "P13. Natural resources" (40.6%). Thus, the most vulnerable countries should define policies to improve their situation in these competitive factors, since, in addition to having been identified as key elements, they are the weakest in these areas. Specifically, the determining elements of competitiveness on which it is possible to work more effectively in the short/medium term would be those related to the enhancement of cultural elements and historical-artistic heritage; the protection of natural areas; the availability and improvement of information and communication technologies; the international opening of the destination, which, in turn, would promote regional trade agreements; and the increase in the supply of transport infrastructure, especially rail and air transport, as well as tourist services. This would answer RQ2: In which dimensions of competitiveness should they work to improve this situation? The above outlines three strategic elements for improving competitiveness. The first focuses on the management and protection of tourism resources, both cultural and natural. The second involves improving transportation and telecommunications infrastructures. And third, improving the country's external openness. The most vulnerable countries should design strategies focused on these lines, or at least on those on which they can work more effectively in the short term.

This research contributes, in the first place, to identifying the countries with the worst departing point in the process of recovery after the peak of the pandemic. Secondly, it sets out a roadmap of factors on which the countries should focus in order to improve the competitiveness of tourist destinations. It would be interesting to continue this research by carrying out a follow-up study during the recovery period, the recovery period, related to the evolution of arrivals to each of the destinations defined as vulnerable. It would also be very interesting and useful to compare the nature of the policies adopted by the countries to support their tourism sector with the factors on which intervention has been recommended.

Declaration of Competing Interest

Biographies.

Jose Antonio Salinas Fernández is a senior lecturer at the University of Granada, Spain, Department of Spanish and International Economics. The interests of his research focus on tourism management, economic impact, social and economic indicators. He holds a Ph.D. in Economics and Business and a MA in Economy of the European Union. He has worked as an economic analyst and consulting projects director for various companies and financial institutions.

José Manuel Guaita Martinez has been the Director of the master's degree in Business Administration at the Valencian International University since 2014 until 2020. He received a PhD in Economics after completing a degree in Business Administration and Contemporary History. He has also been the head of the international financial markets department at several banking institutions. He conducts basic research into financial markets, sport, entrepreneurship, innovation, sustainability, and tourism economics. He has guest edited special issues in Journal of Business Research and Technological Forecasting and Social Change. He belongs to the editorial review board of top journals such as Journal of Business Research, Journal of Innovation & Knowledge, and International Journal of Entrepreneurial Behavior & Research. He is currently a senior lecturer at Universitat Politècnica de València

Jose María Martín Martín is a senior lecturer at University of Granada, Spain, Department of Spanish and International Economics. The interests of his research focus on tourism economics, economic and social sustainability, seasonality and sustainable development. He holds a Ph.D. in Economics and Business and a MA in International Business. He has worked as an economic analyst and consulting projects director for various companies and financial institutions. He has collaborated with the Spanish government in the development of public policies in the tourism sector. He has also led the Business Area for the International University of La Rioja.

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US travel industry leader downplays the idea high prices are driving away international visitors

The leading lobbying group for the U.S. travel industry this week claimed inefficient policies like long tourist visa wait times and friction points like lagging security screening technology are causing the United States to lose its competitive edge when it comes to attracting international visitors — not high prices on airfare and hotel rates .

A study out this week from the U.S. Travel Association and Euromonitor International claims the U.S. is at risk of losing 39 million visitors with a combined $150 billion in spending power over the next decade due to "excessive" visitor visa wait times. The study also ranked the U.S. 17th out of 18 top travel destinations like the U.K. (ranked first), France (ranked second) and Turkey (ranked third) in terms of overall global tourism competitiveness. China was the only country to rank lower than the U.S. in the top 18.

"The competition is outperforming us," said U.S. Travel Association president and CEO Geoff Freeman in a press conference Thursday. "The economic cost of these failures is in the billions of dollars."

Why the lagging competitiveness?

The U.S. Travel Association commissioned the report to better understand the slow return of international travel to the U.S. following the end of pandemic-related restrictions. According to the study, the U.S. in 2023 was estimated to only be at 84% of its international tourism levels.

While the U.S. remains the most-desired destination for global travelers, it ranks third (behind Spain and France, respectively) in terms of actual international visitor count. Spain, France, Turkey, Mexico, the U.K., Greece and the United Arab Emirates all had international visitor totals last year that exceeded prepandemic levels.

In what areas is the U.S. as a brand scoring low, per the report? Government leadership on travel-related issues , national travel strategy, safety and security, visa wait times and visa waivers. The U.S. only grants 42 countries visa-free travel privileges compared to the U.K., which designates 102 countries with visa-free travel designation. The U.S. also scores in the middle in terms of biometric security screening capabilities, which can make air travel more efficient when used to its maximum potential.

The study does not say either of the main U.S. political parties is a problem, but it notes that most major markets have a minister of tourism. The U.S. does have an assistant secretary of commerce for travel and tourism position, but that job has not been filled or funded by Congress.

The U.S. does get high marks for its destination marketing, air connectivity and Trusted Traveler Programs .

The costly elephant in the room

Curiously, the high cost of hotels and airfare in the U.S. wasn't mentioned as a potential deterrent for driving international visitors away from the U.S.

While a press release from the U.S. Travel Association indicated the report was commissioned to study why international visitors were slow to return following the end of pandemic-related restrictions, Freeman noted the organization was looking at factors that were "decades in the making."

"We've seen these issues rear their ugly head for many, many years and be a deterrent for travelers. We've had other points in time where our market share has slipped, although not in the sustaining way that it is right now," Freeman said. "So when you look at the period of time of 2023, I'm sure costs played a role for some; although, as we look at inflation around the world, the U.S. is actually quite moderate compared to the inflationary pressures that people are feeling in countries all around the world."

Freeman later said that the market will naturally take care of pricing issues for consumers. But it is the role of the government to smooth out some of these longer-term factors driving visitors away.

"We will continue to look at the roadblocks we put in place that can be addressed, and those are, by and large, the roadblocks that are created and perpetuated by government," Freeman said.

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No matter what is your domain in the travel industry, there is always competition out there. There are other businesses out there that are keen to capture your target audience as well. The competition is simply cutthroat and the travel agents need to devote considerable time to competitive analysis. The advantages of competitor analysis are many but still, it is one of the neglected aspects in the travel industry.

Apart from offering critical insights into the ways and practices of the competitors, it also helps to briefly understand their behavior which enables the travel agents to anticipate their next moves and strategies. It will further help them to stand among the competition. Today, when we look at the internet, the place is full of e-commerce sites, but only those manage to remain on top which do extensive competitor research to develop their services and promotions.

It is important to analyze the competition at different stages of the travel business to ensure that it is providing the best possible services at remarkable prices. Competitive analysis can help the travel business to learn about the ins and outs of how the competition works and identify potential opportunities where you can out-perform them. For that, it is important to understand how to do competitive analysis in the travel industry .

Tips to Perform Effective Competitive Analysis

Competitive market research basically focuses on finding and comparing the key market metrics that help to identify the differences between the services and prices offered by the competitors. Comprehensive market research helps to establish an effective sales and marketing strategy and helps to analyze the tips to prepare a marketing plan for the travel business which further helps the travel business stand out from the crowd.

Competitive analysis helps the travel business size up the competition by identifying their strength and weaknesses. In order to know how the competitors are performing in the travel industry, it is important to know about the tips to conduct competitor research.

Determine the Competitors

If you want to know how to become a successful travel business owner , it is important for travel agents to know more about their competitors so that they can analyze and compare the data accurately. To do so, here are following things you can do.

Divide the competitors into two categories: Direct and Indirect.

Direct competitors are travel businesses and companies that offer services that could pass as a similar substitute and work in the same geographical areas.

On the other hand, indirect competitors provide products and services that are not the same but could satisfy the same customer needs and requirements and solve the problem.

When comparing the travel business, the travel agents should focus on both direct and indirect competitors.

It is important for travel agents to frequently run the competitive analysis. The market can and will shift anytime and the trends can change, and if you are not constantly scoping it out, you won’t be aware of these changes until it’s too late.

Determine the Services Offered by Competitors

After analyzing the competitors, the next step is to determine the services they are going to provide and whether it is a good place to start. One of the best tips to introduce travel business services online is to analyze how the competitors are showcasing their business online.

It is important to analyze the complete product line and the quality of the services the competitors are offering.

It is also important to note how they are offering the price and discounts from time to time to the customers. It will help the travel agents to introduce the offers and remarkable costs accordingly and the business can attract potential customers as well.

Research about Competitors’ Sales Tactics and Output

Running a sales analysis on competitors is quite tricky but is one of the most effective parts of competitive analysis. It is a helpful piece of information that will give the travel agents an idea of how competitive the sales process is and analyze the effective sales tips to grow business in the travel industry .

The travel agents can also take the feedback from their clients who mentioned they were considering the competitors before and analyze what made them choose you.

When the travel company identifies the competitor, it becomes more important for them to know more about them and offer effective services.

Asking open-ended questions to the prospects and getting honest feedback about what customers find appealing will lead your travel business to achieve remarkable growth.

Once you have got the answer to these questions, you can start scoping out the competitors’ marketing efforts.

Take Note of Competitor’s Content and Graphics

It is important for the travel business to analyze the quality and quantity of the content and graphics they are using in social media marketing. Depending on the topics they are discussing, the content may help the travel business to hone in on their lead generation strategies. Also, don’t forget to evaluate the quality of the content and the visuals.

Instead of going through everything in one go, just pick a small number of the latest samples and analyze how the competitors attract more customers with visuals and graphics as well as the content.

When you have a solid understanding of how the competitors are using content and visuals to engage the customers, you can finally customize a well-organized social media marketing plan to grow your business by facing every obstacle proficiently.

When the travel business knows how to do competitive analysis in the travel industry , they can create a more informed and effective marketing plan to grow the business. Researching about the competitors in the travel industry can help the travel agents clearly evaluate the competitive scenarios and what your travel brand needs to stand out in the travel industry.

Published On : 03-Feb-2024

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Market cap of leading online travel companies worldwide 2023

As of September 2023, Booking Holdings was the online travel company with the highest market cap worldwide. As of that month, Booking Holdings - the leading online travel agency (OTA) worldwide by revenue - recorded a market cap of roughly 112.8 billion U.S. dollars. Airbnb and the Trip.com Group followed in the ranking, with a market cap of around 91.1 and 23.2 billion U.S. dollars, respectively.

Market cap of leading online travel companies worldwide as of September 2023 (in million U.S. dollars)

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September 2023

as of September 18, 2023

Statistics on " Online travel market worldwide "

Travel and tourism revenue worldwide 2019-2028, by segment
Distribution of sales channels in the travel and tourism market worldwide 2018-2028
Online travel market size worldwide 2017-2028
Revenue of the travel apps industry worldwide 2017-2027
Estimated EV/Revenue ratio in the online travel market 2024, by segment
Estimated EV/EBITDA ratio in the online travel market 2024, by segment
Travel product online bookings in the U.S. 2024
Travel product online bookings in Canada 2024
Travel product online bookings in the UK 2024
Travel product online bookings in China 2024
Travel product online bookings in India 2024
Importance to book a trip fully online among travelers worldwide 2023, by generation
Revenue of leading OTAs worldwide 2019-2023
Marketing expenses of leading OTAs worldwide 2019-2023
Marketing/revenue ratio of leading OTAs worldwide 2019-2023
Number of employees at leading travel companies worldwide 2022
Number of aggregated downloads of leading online travel agency apps worldwide 2023
Most popular travel and tourism websites worldwide 2024
Number of bookings through Booking Holdings worldwide 2010-2023, by segment
Operating income of Booking Holdings worldwide 2007-2023
Net income of Booking Holdings worldwide 2007-2023
Revenue of Expedia Group, Inc. worldwide 2017-2023, by business model
Operating income of Expedia Group, Inc. worldwide 2007-2023
Net income of Expedia Group, Inc. worldwide 2007-2023
Airbnb revenue worldwide 2017-2023
Airbnb revenue worldwide 2019-2023, by region
Airbnb operations income worldwide 2017-2023
Airbnb net income worldwide 2017-2023
Total revenue of Trip.com Group 2013-2023
Revenue of Trip.com 2013-2023, by product
Revenue of Trip.com 2017-2023, by region
Net income of Trip.com 2013-2023
Revenue of Tripadvisor worldwide 2017-2023, by business segment
Revenue of Tripadvisor worldwide 2012-2023, by region
Operating income of Tripadvisor worldwide 2008-2023
Net income of Tripadvisor worldwide 2008-2023

Other statistics that may interest you Online travel market worldwide

Industry overview

Premium Statistic Market size of the tourism sector worldwide 2011-2024
Premium Statistic Travel and tourism revenue worldwide 2019-2028, by segment
Premium Statistic Distribution of sales channels in the travel and tourism market worldwide 2018-2028
Premium Statistic Online travel market size worldwide 2017-2028
Premium Statistic Revenue of the travel apps industry worldwide 2017-2027
Premium Statistic Estimated EV/Revenue ratio in the online travel market 2024, by segment
Premium Statistic Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Online bookings

Premium Statistic Travel product online bookings in the U.S. 2024
Premium Statistic Travel product online bookings in Canada 2024
Premium Statistic Travel product online bookings in the UK 2024
Premium Statistic Travel product online bookings in China 2024
Premium Statistic Travel product online bookings in India 2024
Premium Statistic Importance to book a trip fully online among travelers worldwide 2023, by generation

Market leaders

Premium Statistic Revenue of leading OTAs worldwide 2019-2023
Premium Statistic Marketing expenses of leading OTAs worldwide 2019-2023
Premium Statistic Marketing/revenue ratio of leading OTAs worldwide 2019-2023
Premium Statistic Number of employees at leading travel companies worldwide 2022
Basic Statistic Market cap of leading online travel companies worldwide 2023
Premium Statistic Number of aggregated downloads of leading online travel agency apps worldwide 2023
Premium Statistic Most popular travel and tourism websites worldwide 2024

Booking Holdings

Basic Statistic Revenue of Booking Holdings worldwide 2007-2023
Premium Statistic Number of bookings through Booking Holdings worldwide 2010-2023, by segment
Premium Statistic Operating income of Booking Holdings worldwide 2007-2023
Premium Statistic Net income of Booking Holdings worldwide 2007-2023

Expedia Group

Premium Statistic Revenue of Expedia Group, Inc. worldwide 2007-2023
Premium Statistic Revenue of Expedia Group, Inc. worldwide 2017-2023, by business model
Premium Statistic Operating income of Expedia Group, Inc. worldwide 2007-2023
Premium Statistic Net income of Expedia Group, Inc. worldwide 2007-2023
Premium Statistic Airbnb revenue worldwide 2017-2023
Premium Statistic Airbnb revenue worldwide 2019-2023, by region
Premium Statistic Airbnb operations income worldwide 2017-2023
Premium Statistic Airbnb net income worldwide 2017-2023

Trip.com Group

Premium Statistic Total revenue of Trip.com Group 2013-2023
Premium Statistic Revenue of Trip.com 2013-2023, by product
Premium Statistic Revenue of Trip.com 2017-2023, by region
Premium Statistic Net income of Trip.com 2013-2023

Tripadvisor

Premium Statistic Revenue of Tripadvisor worldwide 2008-2023
Premium Statistic Revenue of Tripadvisor worldwide 2017-2023, by business segment
Premium Statistic Revenue of Tripadvisor worldwide 2012-2023, by region
Premium Statistic Operating income of Tripadvisor worldwide 2008-2023
Premium Statistic Net income of Tripadvisor worldwide 2008-2023

Further related statistics

Basic Statistic Leading online classifieds worldwide 2023, by market cap
Premium Statistic Share of population purchasing travel services online in Finland 2018, by category
Premium Statistic Reasons for using a smartphone or tablet for online shopping in Finland 2018
Premium Statistic Regional travel industry conversion rates worldwide 2015, by device
Premium Statistic Reach of the most popular online travel sites in Asia Pacific 2014
Premium Statistic Online travel agency share of gross bookings in Europe 2015
Premium Statistic OTA market share in the hotel industry in the Nordics 2013-2021
Premium Statistic Skyscanner funnel sessions 2015-2021
Premium Statistic Unique visitors to most popular online travel sites in Asia Pacific 2014
Premium Statistic EBITDA of Skyscanner 2012-2020
Premium Statistic Global revenue of trivago 2019-2023, by geographical segment
Premium Statistic Revolve Group annual net sales 2016-2017
Premium Statistic Ranking of online travel agencies based on revenue in the Netherlands 2017
Premium Statistic Asia Pacific digital travel sales growth 2014-2019, by country
Premium Statistic Mexico: Black Friday average online order value 2016-2017
Premium Statistic Most common duration before a trip to purchase travel tickets on OTAs in Taiwan 2023
Premium Statistic Most common duration before a trip to book accommodation on OTAs in China 2023
Premium Statistic Reasons for not using OTAs for purchasing tickets or services Singapore 2023
Premium Statistic Time of booking other travel services on OTA-platforms India 2023, by age group
Premium Statistic Online travel agency usage India 2023, by age group

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24 Top-Performing Travel and Tourism Corporations

The travel and tourism industry is a bustling market, encompassing a wide array of enterprises that offer both national and international travel services. This industry includes, but is not limited to, online marketplaces for short-term accommodations, hotel booking platforms, and comprehensive travel agencies that offer customizable holiday packages. Companies in this sector strive to provide a seamless experience for travelers, from booking the perfect lodging to planning an entire trip. As the world becomes increasingly digital, these companies are focusing on enhancing their online features and accessibility, creating interactive platforms to engage customers and meeting the demands of the modern-day traveler.

Top 24 Travel and Tourism Companies

Website: airbnb.com
Headquarters: San Francisco, California, United States
Founded: 2007
Headcount: 5001-10000
Latest funding type: Ipo

Airbnb is an online marketplace and hospitality service that enables people to rent or lease short-term lodging including vacation rentals, apartment rentals, homestays, hostels, and hotel rooms.

Website: hotels.com
Headquarters: Dubai, Dubai, United Arab Emirates
Founded: 1993
Latest funding type: Acquired

Hotels.com is a leading online travel company that offers a wide range of hotel bookings and vacation rentals worldwide. They provide users with easy access to hotel discounts, cheap hotels, hotel rates, and hotel reservations. With a large inventory of accommodations and a user-friendly platform, Hotels.com is a trusted choice for travelers.

3. Thomas Cook India Limited

Website: thomascook.in
Headquarters: Mumbai, Maharashtra, India
Founded: 1841
Headcount: 1001-5000

Thomas Cook is a travel company that offers holiday packages and travel services. They provide customizable domestic and international tour packages, including honeymoon packages and adventure trips. Thomas Cook also offers currency exchange, travel insurance, visa services, and international money transfer.

4. TUI Nederland

Website: tui.nl
Headquarters: Rijswijk, Zuid-Holland, Netherlands
Founded: 1995

TUI is a travel company offering a wide range of vacation packages, including flights, accommodations, and activities. They provide various options for different types of travelers and destinations.

5. Alpitour

Website: alpitour.it
Headquarters: Torino, Italia, Italy
Founded: 1947

Alpitour is a trusted company that offers secure and guaranteed vacation packages. They provide inclusive travel insurance and 24/7 assistance for a worry-free trip. With destinations in Capo Verde, Messico, Repubblica Dominicana, Maldive, and Madagascar, Alpitour offers discounts and a variety of packages. They specialize in resorts and top-rated hotels worldwide. Alpitour also offers gluten-free options and a range of travel services, such as catalogs, rules for traveling, and insurance.

6. Travelocity

Website: travelocity.com
Headquarters: Dallas, Texas, United States
Founded: 1996
Headcount: 51-200

Travelocity.com is a travel booking platform that offers a wide range of services including hotel bookings, vacation rentals, vacation packages, domestic flights, car rentals, and travel blog. Customers can find unique places to stay and access special discounts and features. The company values privacy and offers support for booking cancellations and refunds.

Website: orbitz.com
Headquarters: Chicago, Illinois, United States
Founded: 1999

Orbitz.com is an online travel agency that offers flights, hotels, rental cars, vacation packages, and activities at competitive prices.

Website: sunsail.co.uk
Headquarters: Surbiton, Surrey, United Kingdom
Founded: 1974
Headcount: 501-1000

Sunsail.co.uk is a company that offers yacht charter and sailing holidays. They provide bareboat and skippered sailing holidays in various destinations around the world. Their services include flotilla charters, sailing schools, and yacht ownership options. Customers can choose from a range of boats, including catamarans and monohulls. Sunsail.co.uk is a trusted and reliable provider of sailing vacations for individuals, families, and groups.

9. Teletext India Private Limited

Website: teletextholidays.co.uk
Headquarters: Hyderabad, Telangana, United Kingdom
Founded: 1992

Teletext Holidays is a travel agency offering a wide range of holiday packages to various destinations. They provide customers with the opportunity to book all-inclusive, self-catering, and other types of holidays. With a user-friendly website and a mobile app, they aim to make the holiday booking process stress-free and convenient.

10. Panorama Leisure (PT Panorama Sentrawisata Tbk)

Website: panorama-group.com
Headquarters: West Jakarta, Jakarta Raya, Indonesia
Founded: 1972

Panorama Group is an integrated tourism company that offers exceptional services to travelers exploring the world. They provide tour packages, transportation services, and hospitality solutions to make their customers' adventures convenient, enjoyable, and memorable.

11. The Moorings Yacht Charters

Website: moorings.com
Headquarters: Clearwater, Florida, United States
Founded: 1969

The Moorings is a company that offers a variety of charter options for sailing and powerboat vacations in idyllic coastal regions worldwide. They provide sail yachts, catamarans, monohulls, and crewed yachts for charter, along with essential extras and skippered vacations. With their innovative fleet, industry-leading service, and stunning destinations, The Moorings ensures unforgettable yacht charter experiences.

12. Dream Yacht Charter

Website: dreamyachtcharter.com
Headquarters: Annapolis, Maryland, United States
Founded: 2001
Headcount: 201-500

Dream Yacht Charter is a leading company in the yacht charter industry, offering a wide range of sailing vacations to various destinations. They provide fully crewed and bareboat charters, as well as by the cabin charters. With a diverse fleet of monohulls and catamarans, customers can sail their dream vacation in the Caribbean, Europe, and other beautiful locations. Whether experienced or new to sailing, Dream Yacht Charter has options for everyone.

13. Pitchup.com

Website: pitchup.com
Headquarters: London, England, United Kingdom
Founded: 2009

Pitchup.com is a website that offers a wide range of accommodation options for outdoor enthusiasts, including camping pods, caravans, and lodges. They have a vast selection of locations across various countries, providing a convenient platform for customers to find and book their ideal outdoor getaway.

14. Minar Travels (India) Pvt. Ltd.

Website: minartravels.com
Headquarters: New Delhi, New Delhi, India

Minar Travels is a travel company that has been providing unique and unforgettable experiences to travelers for over two and a half decades. With a commitment to excellence in every aspect, the company has earned numerous honors and accolades. Their goal is to create remarkable journeys and incredible experiences for their clients.

15. Berge & Meer Touristik GmbH

Website: berge-meer.de
Headquarters: Rengsdorf, Rheinland-Pfalz, Germany

Berge & Meer is a travel company offering a wide range of luxury vacation packages to various destinations around the world. They specialize in providing unique and memorable experiences for their customers.

16. Christian Tour

Website: christiantour.ro
Headquarters: Sectorul 1, Bucureşti, Romania
Founded: 1997

Christian Tour is a travel agency that offers a wide range of vacation packages to various destinations. They provide all-inclusive, full board, half board, and bed and breakfast options. Their offerings include beach resorts, city breaks, cruises, and adventure tours.

17. Join UP!

Website: joinup.ua
Headquarters: Kyiv, Ukraine
Founded: 2010

JoinUP is a company offering travel services, including tours, flights, and hotel reservations. They provide a wide range of vacation options for various destinations.

18. AAT Kings

Website: aatkings.com
Headquarters: Alexandria, Nsw, Australia
Founded: 1925

AAT Kings is a company that offers exciting and adventurous small group tours in Australia and New Zealand. They are committed to the wellbeing of their customers and provide a range of guided vacations, short breaks, and day tours. With experienced Driver Guides, they offer immersive experiences in stunning landscapes and rich cultural destinations.

19. Exoticca

Website: exoticca.com
Headquarters: Barcelona, Barcelona, Spain
Founded: 2013
Latest funding type: Debt Financing

Exoticca.com is a travel company offering curated, unique and luxury travel experiences to exotic destinations around the world. With a focus on personalized itineraries and high-quality service, Exoticca.com provides customers with unforgettable adventures.

20. ruf Jugendreisen GmbH & Co. KG

Website: ruf.de
Headquarters: Bielefeld, Nordrhein-Westfalen, Germany
Founded: 1981

RUF.DE is a company offering a wide range of youth trips and holidays, including beach and sport camps, party clubs, language experiences, and city trips. They provide various activities and programs, allowing young people to learn, have fun, and make new friends while enjoying their vacation. With a focus on affordability and quality, RUF.DE offers a diverse selection of destinations and accommodations for youth travel.

21. Inside Travel Group

Website: insideasiatours.com
Headquarters: Bristol, Bristol, United Kingdom
Founded: 2000

InsideAsia Tours offers custom holiday and vacation planning services for various destinations in Asia. They provide personalized travel consultants to help create perfect trips.

22. Marvel Tours

Website: marveltours.in
Headquarters: Kochi, Kerala, India

Marvel Tours is a company that offers personalized travel experiences to individuals and groups. They provide a wide range of travel services, including customized itineraries, accommodation bookings, transportation arrangements, and guided tours. With a focus on delivering exceptional customer service and creating unforgettable travel memories, Marvel Tours aims to make every trip a truly unique and enriching experience.

23. Phil Hoffmann Travel

Website: pht.com.au
Headquarters: Glenelg, South Australia, Australia
Founded: 1990

Phil Hoffmann Travel is a travel agency that offers a wide range of travel services and experiences. They specialize in luxury travel adventures and provide personalized travel planning, including flights, accommodations, tours, and more.

24. Creatur Viajes

Website: creaturviajes.com
Headquarters: Mexico, Maine, Mexico
Founded: 1980

Creatur Viajes is a travel agency specializing in adventure tourism, offering exciting and unique vacation packages. With a focus on providing unforgettable experiences, they cater to a wide range of travelers, including young adults and honeymooners.

Want to find more travel and tourism companies?

If you want to find more companies that offer comprehensive travel-related services and accommodations you can do so with Inven . This list was built with Inven and there are hundreds of companies like these globally.

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Increased competition in the travel industry means more focus on consumers

In the most recent development in the battle between Airbnb and the hotel industry, AirDNA has developed a market intelligence tool to provide Airbnb hosts with unprecedented access to market data such as seasonality trends, revenue growth, and demand (among many others).

While AirDNA is not associated with Airbnb, the company aims to put key business intelligence directly in the hands of the hosts, allowing them to make informed pricing and investment decisions.

Scott Shatford- Founder & CEO of Airdna

Previously, hotels held the advantage with respect to such business intelligence, as a proper platform for analyzing market-wide Airbnb data was unavailable. Scott Shatford , CEO of AirDNA, is quoted saying, “Airbnb hosts have been operating in an informational vacuum” — a trend that his company is looking to change with its new offering, Market Minder .

Now with a more level playing field between Airbnb hosts and hotels, the two competitors will find themselves needing to differentiate their offerings and tailor a unique customer experience to each of their guests in the midst of radically changing customer expectations. For customers, this means that we should expect continuously improving levels of service between these providers as their competition heats up.

According to a recently released report by Deloitte , travel and hospitality brands that are “able to capitalize on these changing expectations with speed and agility are more likely to capture their share of the billions of dollars in 2017 global travel growth.” The report continues by describing four areas within the travel and hospitality industry that hosts will need to focus on to win the attention of the consumer: authenticity, personalized experiences, removal of friction (in terms of booking), and on-demand functionality.

Perhaps the most apparent or obvious of the four areas mentioned above is authenticity. The desire for “real” experiences has surged with consumers placing a much higher value on authentic experiences over tourist traps in recent years. In fact, this was one of the initial draws to Airbnb, as it offered customers the ability to experience life more like a local and less like a tourist — with local hosts providing local recommendations.

Alonso Franco- CEO of Arrivedo

While Airbnb used to have a leg up in this regard, hotels have begun changing this image by using companies like Arrivedo which helps hotels build Neighborhood Guides to provide unique local recommendations to travelers. Services such as this have enabled hotels to — as CEO Alonso Franco puts it — “bridge this gap for independent hotels by building a technology that fosters community and dialogue between hotels and their guests.”

Given that Airbnb can no longer claim autonomy in the sense of authenticity, and hotels can no longer are the only hosts with advanced business intelligence tools at their disposal, we, as customers, are likely to be the ones who realize the benefit of this increased competition. Accommodation providers will begin to personalize our experiences more and more with both technological and “authentic” offerings.

For these providers moving forward, the difficulty will be accurately interpreting consumer tastes and crafting exciting offers for travelers from across the globe.

Zac Laval An explorer of the ambiguous and the uncertain, Zac is driven by technology's role in shaping the future. VIEW ALL POSTS

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PRESS RELEASES

Travel advisor tech startup tern wins entrepreneur of the year competition and $10,000 prize.

Three finalists competed at the Travel Advisor Conference May 29-31 in Dallas, TX, where audience members voted for the award winner.

Alexandria, VA, June 5, 2024 —The American Society of Travel Advisors (ASTA) congratulates the three finalists who participated in the annual Entrepreneur of the Year competition during the annual Travel Advisor Conference.

“Congratulations to all the finalists of this year’s Entrepreneur competition, each one deserves recognition for innovating while taking risks as they built a creative business,” said Gloria Bohan Founder, President & CEO at Omega World Travel. The competition is sponsored by the Dan and Gloria Bohan Foundation, “Finding new ways to apply technology solutions in our industry is going to make a big difference, and I’m delighted to be a part of it. Along the way to entrepreneurship, one needs the support of likeminded people who cheer you on. It is important, too, to develop an entrepreneurial spirit in others. Large companies need to innovate and develop the mindset of an entrepreneur within their teams."

This year’s finalists; Lisa Watson, Founder & Owner of FyndTravel , Richard Earls, President of Arqiteqt Software , and David Shull, CEO & Co-Founder of Tern , each presented their three-minute ‘pitch’ to the General Session audience members, vying for their votes. The winner was David Shull of Tern, a software company built for travel advisors that streamlines business workflows for maximized growth.

“Winning the ASTA Entrepreneur of the Year award is a tremendous honor,” said David Shull. “My team and I flew to the ASTA conference in San Francisco in 2022. While there, we heard firsthand the intense need from advisors for one system that could power their travel businesses. We committed then and there to building something that would transform the way industry uses technology. This award is a powerful testament to the impact we’ve had to date, and we’re just getting started. We’re incredibly grateful for this award and opportunity and are excited for what the future holds for the travel industry.”

ABOUT ASTA Rebranded in 2018 as the American Society of Travel Advisors, ASTA is the leading global advocate for travel advisors, the travel industry and the traveling public. Its members represent 80 percent of all travel sold in the United States through the travel agency distribution channel. Together with hundreds of internationally-based members, ASTA’s history of industry advocacy traces back to its founding in 1931 when it launched with the mission to facilitate the business of selling travel through effective representation, shared knowledge and the enhancement of professionalism. For more information about the Society, visit our mission statement .

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Tourism Market Research: Trends 2023 in the UK
US Online Travel & Tourism Industry: Who Are The Top Players?
These are the top countries for travel and tourism in 2019
6 Ways To Stand Out Among Competitors in the Travel Industry
Travel And Tourism Business Swot Analysis
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Global Business Travel Market to Reach $829.5 Billion by
Complimentary updates for one yearGlobal Business Travel Market to Reach $829.5 Billion by 2027. - In the changed post COVID-19 business landscape, the global market for Business Travel estimated ...
US travel industry leader downplays the idea high prices are driving
The leading lobbying group for the U.S. travel industry this week claimed inefficient policies like long tourist visa wait times and friction points like lagging security screening technology are causing the United States to lose its competitive edge when it comes to attracting international visitors — not high prices on airfare and hotel rates.. A study out this week from the U.S. Travel ...
How to Do Competitive Analysis in Travel Industry
To do so, here are following things you can do. Divide the competitors into two categories: Direct and Indirect. Direct competitors are travel businesses and companies that offer services that could pass as a similar substitute and work in the same geographical areas. On the other hand, indirect competitors provide products and services that ...
Top online travel companies by market cap 2023
Published by Statista Research Department , May 22, 2024. As of September 2023, Booking Holdings was the online travel company with the highest market cap worldwide. As of that month, Booking ...
24 Top-Performing Travel and Tourism Corporations
Airbnb is an online marketplace and hospitality service that enables people to rent or lease short-term lodging including vacation rentals, apartment rentals, homestays, hostels, and hotel rooms. 2. Hotels. Hotels.com is a leading online travel company that offers a wide range of hotel bookings and vacation rentals worldwide.
Travel Industry: One of the Largest Service Industries
The travel industry is concerned with providing services related to travel from one location to another.
Increased Competition in the Travel Industry Means More Focus on
Increased competition in the travel industry means more focus on consumers. August 23, 2017. In the most recent development in the battle between Airbnb and the hotel industry, AirDNA has developed a market intelligence tool to provide Airbnb hosts with unprecedented access to market data such as seasonality trends, revenue growth, and demand ...
Travel Advisor Tech Startup Tern Wins Entrepreneur of the Year
Three finalists competed at the Travel Advisor Conference May 29-31 in Dallas, TX, where audience members voted for the award winner. Alexandria, VA, June 5, 2024 —The American Society of Travel Advisors (ASTA) congratulates the three finalists who participated in the annual Entrepreneur of the Year competition during the annual Travel Advisor Conference.
Competition and exemptions
Competition and exemptions. Competition leads to lower prices and more choice for consumers. It also inspires better quality products and services. The Competition and Consumer Act 2010 bans business behaviours that damage competition. A business can seek an exemption if it is planning conduct that will or may breach competition law.