A new report from the Adventure Travel Trade Association (ATTA), QuickLook: Adventure Travel Business Health (December 2020) (the full download is only available to ATTA Business and Professional Members), has found that the industry’s 2021 outlook remains relatively optimistic. In a November and December 2020 survey, tour operators, accommodations, travel agencies, and other adventure travel businesses shared their current business outlook and future plans.
Of the 237 respondents surveyed, 25% are confident in their ability to weather the storm without any external intervention, 50% expressed interest in being acquired by another company or receiving investment, and 34% would be interested in merging with another company.
Those interested in being acquired or receiving investment are primarily interested in continuing the brand they built, giving team and travelers the opportunity to continue on (85%). Adventure travel businesses looking for financial assistance in the form of a low-interest loan that would need to be paid back within 3 years would benefit most from $50,000 to $300,000 ($USD).
Although 15% of the respondents may need to close down, only 1% are definitely shuttering their doors. If the current environment continues, most respondents in danger of closing do not expect to make it through 2021. If they do shut down, 38% hope to hibernate and return someday, 14% would close for good, and 41% do not know what the future will hold.
On a positive note, 23% of respondents indicated that they are interested in acquiring or investing in another company. 30% of this group have $250,000 or less to invest, and 20% have $10 million or more ($USD).
This report summarizes the results and provides another benchmark of the current status of the adventure travel industry. ATTA Business and Professional Members can download the full report here: QuickLook: Adventure Travel Business Health (December 2020).