Posted by: Tyson | October 24, 2008

Differentiation

One thing I find particularly interesting about the Adventure travel industry is that so many seemingly outlandish things turn into viable  businesses.  I’m constantly impressed by the audacious trips adventure travel entrepreneurs come up with, and always intrigued when they find willing and excited customers to pay for the adventure.

A couple of interesting articles that exemplify the spirit of “invent a crazy trip that isn’t offered anywhere else and the customers will come”:

This CNNMoney article profiles an entrepreneur who takes customers 600 feet underwater in his homemade, uninsured submarine!  The trips take place in Honduras, because that is one of the few places he can operate without insurance.  In order to attract sharks, he takes DEAD HORSES to the bottom of the ocean.  He has developed an enthusiastic client base who is excited about paying $1,500 for a 5 hour dive.  When they raise questions about the safety of riding in his sub he responds “Your only insurance is that I’m going with you.”

Also, this article in the UK Globe and Mail highlights a few unique tours including skydiving in front of Everest (for $27,500), and a company who puts clients (some as young as 6!) in a sharkproof cage and lowers them into the ocean for face-to-face encounters with sharks.

These stories are intriguing, but there are also some important takeaways:

  • Differentiated offering is key: Part of the reason these outlandish ideas are so successful is that they are different.  The tour operator only needs to find a couple dozen people to make a trip successful.  It’s probably easier to find a dozen people excited to skydive in front of Everest than compete with the hundreds of providers offering the same African Safari.
  • From the G & M article referenced above - “Research by the Adventure Travel Trade Association suggests that mainstream resort-style holidays are losing some ground to other trips – and many in the industry see edgier travel as an important slice of the pie.” I tend to agree with this sentiment.  People are continually looking for more real and engaging experiences and are willing to pay for those experiences.

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