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New Study Shows Importance of In-Destination ActivitiesFebruary 18, 2011 By: George Dooley
The U.S. travel activities market totaled nearly $27 billion in 2009, making it almost twice as large as the car rental segment, according to a new report from travel industry research firm PhoCusWright. While less than one-third of all travel activities, events, attractions and tours were booked online in 2009, a growing aggregator network and advancements in technology and commercial models will power significant growth in advance bookings and online distribution.
When They Get There (and Why They Go): Activities, Attractions, Events and Tours reveals a diverse travel activities market that is increasingly connected to the broader travel distribution ecosystem. PhoCusWright projected double-digit growth for travel activities bookings via traditional online travel channels through 2012.
"The challenges of connecting to myriad small providers with limited technical capability and a low average transaction value have inhibited online distribution of travel-related activities," said Douglas Quinby, senior director of research at PhoCusWright. "But while the market remains highly fragmented, key activity aggregators and a flood of innovation related to local search, social media and mobile devices are creating unprecedented opportunities."
When They Get There (and Why The Go): Activities, Attractions, Events and Tours attempts to unravel the complexities of the U.S. travel activities market, providing data and analysis to help travel companies understand its unique challenges and opportunities. Key topics include:
• Market sizing and forecasts for the U.S. travel activities market from 2008-2012, including breakouts by activity type
• Traveler behavior in relation to in-destination services, including research, shopping and booking trends; key drivers and inhibitors; and demographic patterns
• The role and impact of emerging technologies, including reservation and distribution technologies, social media and mobile
• Challenges and opportunities for travel suppliers, distributors and technology providers
The study drew from 45 in-depth interviews with senior executives across the activities and travel distribution landscapes; quantitative surveys of both consumers and activity/event suppliers; and analysis of extensive third-party data across 20 activity types.