Table Of Contents
Roshan Deshmukh
Akhilesh Animesh Prabhugaonkar
Why Adventure Tourism is a Good Option to Boost Your Travel Business?
Key takeaways
- Introduction
- Evolution of adventure tourism
- Reason behind the rising popularity of adventure tourism
- Dynamics of the adventure tourism industry
- Mergers and acquisitions in the industry
The tourism industry is an extremely important component of the service sector of the economy. Many countries and island nations depend on the tourism industry for increasing their gross domestic product. Moreover, the global demography is tilted in the favor of people aged between 18-35. Adventure tourism is a widely popular activity in this age group; catering to the demands of this age group, thus becomes a profitable proposition for any tourism business. Adventure travel or tourism refers to exploring remote and hostile locations which might involve certain risks and require physical endurance. Many-a-times, cultural activities also form a part of adventure travel, especially when the location is an exotic one.
How did adventure tourism evolve in modern times?
The advent of adventure tourism can be traced to 1865, when a group of travelers attempted the ascent of the Matterhorn. Subsequently, the Colorado river descent became a popular adventure activity among the locals. As the enthusiasm regarding adventure tourism spread, two institutions viz., The Explorers Club and The National Geographic Society shot to prominence.
These two institutions brought the adventure tourism industry into limelight, with many people in Europe and Asia-Pacific undertaking daring expeditions. The Himalayas gradually became the hotspot of adventure travelers. Maurice Herzog, in 1950, became the first human to successfully climb a peak over 8000m, the Annapurna. However, the biggest catalyst which pushed the youth towards adventure tourism was the successful ascent of the highest peak in the world, Mount Everest. Sir Edmund Hillary and Tenzig Norgay, in 1953, became the first to climb the Everest which opened the gates for adventure tourism.
Reasons behind the increasing preference for adventure tourism and travel
The most obvious feature of adventure tourism is that, unlike leisure tourism, it tests the physical endurance levels of the traveler. Naturally, adventure travel helps in improving physical health. The risks involved in this type of travel also help in developing mental fortitude. Building physical and mental strength ultimately helps in boosting self-confidence and cultivates a feeling of freedom. Moreover, since adventure travel spots generally have a connection with nature, it helps the traveler to get away from the routine city life. Hence, adventure tourism is also called ecotourism. Additionally, cultural activities help in understanding how different societies go on with their daily lives, along with their norms and values.
Factors influencing the growth of the industry
The rising number of travelers across the world is predicted to be the primary growth driver of the global adventure tourism industry. Moreover, the growing disposable incomes of the global population are expected to augment the growth rate of the adventure tourism sector. Furthermore, an increasing shift towards online vacation planning is estimated to play a huge role in the expansion of the industry.
The adventure tourism industry is classified on the lines of type, activity, type of traveler, age group, and sales channel. Based on the type, the soft segment is expected to garner an absolute revenue of $198.2 million from 2022 to 2032. At the same time, the hard segment is likely to amass $78.4 million. Regional analysis shows that the industry in China is expected to have the highest CAGR of 21.7% during the forecast period.
Mergers, acquisitions, and collaborations
One striking feature of the adventure tourism industry is its dynamic nature, which is the result of different strategic alliances between the leading companies. For instance, Active Adventures, in July 2021, announced the acquisition of Austin Adventures, a tour operator based in the US. The acquisition is expected to help Active Adventures to increase its footprint across the world.
In January 2023, Desert Adventures, a travel company with operations in different Middle East countries, announced a partnership with Global Destinations, an Indian travel firm. The statement from Desert Adventures highlighted that the partnership would help the company to expand its base in India in the coming period.
The global adventure tourism industry is, to summarize, anticipated to rise due to the increasing number of global travelers. The advantages associated with adventure travel will further create favorable growth conditions for the ecotourism sector.
For more suggestions on how to capitalize on the opportunities provided by the adventure tourism industry, feel free to contact us. Moreover, we also offer actionable data on how different companies are engaging in strategic alliances, thus helping your business thrive in this competitive sector.
