The State Of The OTAs Today & What It Means For Tour Operators
Airbnb spent ten years swearing it would never be another OTA. It just started buying its experiences from Viator.For twenty years the industry has argued about whether anybody can build a real marketplace for experiences. Mitch Bach and Pete Syme think the Airbnb deal settles it. The companies with the deepest pockets have looked at the category, done the arithmetic, and decided to rent someone else's supply rather than build their own. The ones still committed to building are running on economics that get worse every year, even while the market underneath them grows. None of that stays inside the marketplaces. A business under margin pressure has only so many places to find money, and the commission operators pay is the one that moves the dial.Pete's answer for operators is not a new tactic, and he says so plainly. What has changed is the price of ignoring the old ones. Discovery sits underneath every other question an operator has, and more money flowing into the platforms meant to solve it has made it harder, not easier. His argument is that operators keep chasing discovery where it costs the most to win while walking past the customers already sitting in their own city, the corporates and schools and universities that book fifteen times instead of once. Mitch pushes on what that leaves for anyone running a general tour for a general audience. They land in the same place: the only bagel tour in New York gets found, and the two hundredth walking tour in Madrid does not.Resources:Peter Syme on LinkedIn, where he posts his breakdowns of the Viator and GetYourGuide numbersTourpreneur business retreats in PortoTourpreneur CONNECT
