Who Prefers Paying for Outdoor Activities?

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46 Views November 29, 2024

In recent months, the health and wellness segment has seen a remarkable surge in the popularity of outdoor activities across various apps, particularly within the European and American marketsEmerging trends indicate significant increases in both revenue and download numbers for applications dedicated to outdoor sports, highlighting a growing public interest in outdoor recreation.

A prime example of this trend is the running app Runna, which reported over 200,000 global downloads in August alone, showcasing a year-on-year growth of nearly 20%. With total revenues reaching approximately $2 million for that month, Runna is making substantial inroads into a competitive market.

Similarly, for cycling enthusiasts, the app Ride with GPS also experienced a commendable increase, with downloads rising by 3.8% in August and revenue hitting around $360,000. Furthermore, the well-known outdoor application AllTrails saw an impressive 900,000 downloads accompanied by a hefty $4 million in revenue during the same timeframe

The data clearly points to a boom in outdoor health-related applications and an uptick in outdoor tourism applications receiving heightened attention.

On September 20, the AI travel planning platform Mindtrip announced its successful raise of $12 million in seed fundingEstablished in January 2023, Mindtrip enables members of outdoor travel groups to share trip plans and customize itineraries, reflecting the increasing fusion of technology and adventure tourism.

The financial success witnessed by these applications piques curiosity about the current trends in the outdoor and travel market, particularly in North AmericaAmong these apps, Runna stands out, having launched in December 2021. Although not yet three years old, its performance in terms of both downloads and revenue has been impressiveOver the past three months, the United States, the United Kingdom, Australia, Canada, and the Netherlands have emerged as the primary regions for Runna's downloads, with the U.S

and U.Kaccounting for over 50% of total downloads, clearly illustrating a strong demand for outdoor-related applications in these markets.

Delving into the revenue details, a notable finding is that the U.Kusers contributed the highest income share to Runna, surpassing that of U.Susers by almost 10 percentage pointsSpecifically, the U.Kaccounted for 37.07% of Runna's total revenue, while U.Susers contributed 27.52%. Furthermore, the average daily revenue from U.Kusers stood at around $20,000, compared to $15,000 from the U.S., demonstrating that British consumers are more willing to spend on running-related initiatives.

Runna primarily focuses on outdoor running, and within this domain, it offers exceptionally tailored features, including personalized training plans and specialized guidance for marathonsThe app includes pace support, helps optimize running form, provides injury management resources, and draws on exercises for strength and endurance training

In essence, Runna is a highly specialized and vertical running app catering to a dedicated user base that exhibits high engagement and willingness to invest financially in their sport.

This stickiness among users is vital; those who adopt running as a habitual activity often possess a certain level of expertise, as running requires enduring stamina and perseveranceConsequently, retaining user activation and loyalty becomes critical once a running application earns user trust and recognition.

Moreover, a key feature of Runna is its built-in community aspectThis community is characterized by a plethora of functionalities, facilitating communication among club members and providing exclusive discounts on sports gear and nutritional productsIt features a diverse range of running-related courses and events to meet the outdoor activity needs of its users, further enhanced by professional coaches who are available for guidance

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The professional club courses are typically behind a paywall, ensuring that the offerings maintain a high level of expertise, an essential factor that draws users willing to spend on premium experiences.

On the other hand, the operational strategy of Ride with GPS bears many similarities to that of Runna, albeit targeting cycling enthusiasts insteadAs a GPS tool, Ride with GPS allows users to access live maps, guiding them along popular cycling routes and assisting in tracking performance data, thus elevating the overall quality of their cycling training.

Interestingly, a significant portion of Ride with GPS's downloads comes from the U.Sand Canada, with American users constituting over 40% of total downloadsIn terms of revenue contribution, recent months have seen U.Susers accounting for an impressive 79.25% of total revenues, while Canada follows at a distant 6.49% — revealing that Americans have a marked preference for spending on cycling applications.

This contrast highlights a key behavioral difference: British users appear to favor investing in running apps, while Americans seem more inclined to spend on cycling

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