Arival has released the second edition of its State of Experiences in Australia and New Zealand report, revealing a major shift in how travelers book tours, activities and attractions. Online travel agencies have become the single largest distribution channel across the region, overtaking operator websites and offline direct bookings. This marks a significant turning point for the sector as digital distribution continues to reshape how operators reach travelers.
The findings reflect the importance of experiences to Australia’s tourism, as the Australian Tourism Exchange 2026 wraps up this week. The digitization of experiences will also be a central topic at Arival 360 | Brisbane from 22 to 24 June.
While digital adoption has been rising for years, the new research shows a clear acceleration. Online channels now account for the majority of bookings across the region, with OTAs taking the top spot. Although the exact mix varies by operator type and market, the trend is consistent across Australia and New Zealand and reflects broader shifts in traveler behavior.
“Experiences remain the most dynamic part of travel, but operators across Australia and New Zealand are navigating a tougher environment,” said Bruce Rosard, cofounder of Arival. “OTAs moving into the number one position in distribution is one of the most important developments we’ve seen. It affects margins, marketing and how operators think about their long‑term channel strategy.”
The report shows that operator profitability improved in 2025, with seven in ten operators reporting a profitable year, a significant increase from 2024. However, fewer than half of operators saw bookings growth and one in five experienced declines, indicating a more challenging demand environment across the region.
The research also highlights the fragmented structure of the sector. One in three tour and activity operators serves fewer than 10,000 guests per year, while attractions are far more concentrated, with one in three serving more than 50,000 guests annually. This longtail dynamic continues to shape how operators approach distribution, pricing and technology.
Technology adoption remains uneven. Operators use an average of five systems, many of which are not integrated. Nearly half of operators cite automation as their top technology priority for 2026, followed by system integration. AI adoption is rising quickly, with almost three in four operators researching, experimenting with or using AI, although only one in three reports meaningful results.
“With ATE bringing global buyers and suppliers together this week, the findings underscore the need for operators to strengthen digital capabilities, diversify distribution and prepare for increased competition,” Rosard said. “This is exactly why Arival 360 Brisbane is happening now. The industry needs a place to come together, share solutions and chart a path forward.”
The State of Experiences in Australia and New Zealand is based on two waves of operator research conducted by Arival in 2024 and 2025, with responses from more than 500 tour, activity and attraction operators across the region. The report provides detailed analysis of performance, distribution, technology adoption and operator priorities for 2026.
