Skift Take
In a world increasingly valuing experiences over possessions, the potential rewards of selling travel experiences online are substantial.
The playbook for selling flights and hotels is pretty well known. But selling experiences—where the growth is now — is still being figured out.
Take search, for example. “When it comes to flights or hotels, everyone has a fixed mental model of how online search should work,” said Nils Chrestin, Chief Financial Officer for GetYourGuide. “But with experiences, that’s not the case. It’s one of the areas that excites me the most because nobody else has done that yet, and it’s up to us to innovate.”
Chrestin discussed GetYourGuide’s growth plans in an interview at the Skift Global Forum in New York.
The company and its rivals continue to grapple with a fragmented market dominated by small businesses. Many travel experiences operators have fewer than five employees and limited digital savvy.
The Berlin-based startup works with 30,000 operators but is exploring how to add listings in under-indexed experience categories.
It also strives to develop intuitive online tools to simplify supplier onboarding and management, encouraging small operators of niche experiences to list their inventory.
GetYourGuide plans to release new product features in early October, including AI-powered tools to help suppliers simplify and differentiate their businesses.
“There are tons of opportunities to serve our supply partners better with dashboards, business intelligence, and tools to manage and grow their businesses more effectively,” Chrestin said.
Travel Experiences as a Growth Category
For now, there’s plenty of growth to go around.
Earnest Analytics estimated that sales across GetYourGuide, Viator, Tiqets, and Klook were collectively 188% higher in the 12-month period through August 31 than in 2018, according to a report published Monday that GetYourGuide commissioned.
Since 2019, spending on travel experiences — booked online or offline — has risen by a third, Earnest Analytics estimated. That outstripped consumer goods by 8 percentage points.
These statistics echoed trends summarized in a newly released McKinsey and Skift Research analysis about the evolving role of experiences in travel.
Marketing Tests
GetYourGuide has been seeking cost-effective marketing strategies to associate its brand with people who like live entertainment, sports, and activities. It’s ramping up marketing in the U.S., where Tripadvisor’s Viator leads in sales, and Airbnb and Expedia have established name recognition.
In October, players on the Brooklyn Nets basketball team will begin wearing patches on their uniforms with the GetYourGuide logo. The online travel agency will run ads in the stadium during the season home opener and online featuring players enjoying their favorite local experiences.
The company ran national TV ads during the March Madness basketball tournament and the Academy Awards earlier this year.
IPO Plans Remain on Hold
GetYourGuide, founded 15 years ago, appears to be taking a patient, post-pandemic approach to potential exits, despite CEO Johannes Reck having speculated years ago that the company might go public in 2024. While many tech startups have recently felt pressure to seek exits, GetYourGuide now appears in no hurry.
“Earlier this year, we closed a secondary transaction, with new investors buying shares from older investors,” Chrestin said. “It was oversubscribed on the buyer side, suggesting strong investor confidence in the company’s trajectory.”
“We’re not in need of new capital, nor will we be in need of new capital to invest in growth,” he said. “And there’s no pressure from our investors to liquidate.”
