Mobility & Travel of the Future: Company presentation by Tao Tao, GetYourGuide at the NOAH Conference Berlin 2019, 13-14 June, STATION. — NOAH Conference is Europe‚Äôs premier networking conference for the digital ecosystem where senior industry executives, world-class investors and rising startups gather to discuss market trends, form business partnerships and explore the latest innovations. https://www.noah-conference.com Follow #NOAHConference on social media: LinkedIn: https://www.linkedin.com/company/noah-conference/ Twitter: https://twitter.com/NOAHConference Instagram: https://instagram.com/noah_conference/ Facebook: https://www.facebook.com/NOAHConference
Tao please come onstage. I think it’s the sevens conference
Forget your guide it is it is one the startup competition I think
Then was it in?
2014 or 15 in London and what a journey
So proud of you guys. Thank you so much. Well fording as much
Excellent. Good morning everyone. So I’m Thao I’m the co-founder and chief operating officer
I’ve got your guide and in the next 10 minutes, I want to briefly walk you through how we’re building the future of travel
It’s perfect
The key emerging consumer trend that we’re seeing today
across all industries across all spaces but not as profound as in travel is that it is
Experiences that consumers are seeking in fact millenials
which is very well known are buying increasing more experiences over things and it is experiences that our
customers talk about under the Christmas tree when they talk to their families and
Not only is this the most emotional market
We’re also seeing that this is an incredibly huge market something that insiders have known for many years
But that is also known to the broader audiences is that we operate in the third largest category in travel in
Fact it is a hundred seventy billion dollar market and growing at twice the kegger of every other Travel category
What is most fascinating about the travel space versus for example hotels or flights?
Is that only 5% of the market is truly captured online in?
flights and accommodations more than 40% of all consumers spend is captured through aggregators such as
Booking calm or Expedia’s versus in our case
All the aggregators combined is still very early. And this is a massive opportunity that we think we can still capture
I
Think one of the most interesting things is while it is the third largest
Sector in an online travel. It is by far the most
emotional one
In fact when we started get your guide 10 years ago and we were pitching at a travel conference in London the overarching
Reaction that the the travel judges gave us was that maybe experiences can become a nice attached product to flights in hotels
Fast forward 10 years given the consumer trends and our traction
We’re definitely seeing that it is in fact the flights and hotels that are becoming increasingly
Commoditize and that in fact experiences is at the center of why consumers travel and what they do
So for the people in the room
I don’t know if you remember which
Three-star Hotel, you stayed in or well?
Probably not for this audience or which low-cost airline you feel to vacation with but you certainly remember the experiences
And in the tours you’ve booked, so maybe just a quick question
How many of you have maybe used to get your guide in the past?
Fantastic, thank you for your support
So every year it gets increasingly larger and our goal certainly is to capture at least 100 percent market share in this room
The goal of off get your guide and hence fall is today. We’re trying to capture
What is the core sightseeing markets in our space the evolution of our company is to then broaden it into multiple
categories multiple experiences and in fact
We think in the future build a holistic travel company that puts experiences at the center and then puts everything else around it
In order to get there
the key challenge of our space and the reason we’re very few companies in the past have succeeded in doing this is because
The complexity is so huge and you have to master each subcategory in the space
When we talk about day trips walking tourist attractions city cruises
each of these subcategories are 10 20 30 billion dollar Marco markets big enough to sustain most startups and
The key challenge here
Is that for each of these categories you require a separate business model a different technology stack and different operational playbooks and this complexity
Builds immense mode for us in order to capture all of them in
to build differentiation consumer loyalty and growth margins in all of these categories
At the same time our challenge is to take this complexity and truly simplify it for the consumer
One of the key challenges in our space versus for example. The hotel space is the question that customers ask us
When you book a hotel or when you book a flight?
The only question you have to ask is which flight am I booking or which hotel am I staying at in?
Our space the predominant question is what should I do in Paris?
What should I do in Bali this presents a fundamentally more difficult and more challenging problem that we are investing heavily into with
Artificial intelligence with our machine learning teams to create truly personalized
Recommendations through an online experience, but also creating a personalized experience in the offline experience, which I will talk about in a minute
The goal here is really to make it really simple for the customers the discovery piece is a highly complex one
Whether a customer wants to do an attraction a walking tour, we have to solve that one. We’re also solving the trust issue
Particularly because we’re operating in a service sector
Customers don’t associate the experience they do with the local partners or the local suppliers
But they really associate the experience they do with us in
the early days when customers would leave a negative customer review such as my get yoga tour guide sucked or my get yogurt erga was
Amazing. We wanted to educate our customers and tell them hey, don’t you understand? We’re a marketplace
but however
We saw this as a blessing and their curse because the opportunity here is that if customers truly associate us with the experience
this is a tremendous opportunity to build brand loyalty and
In fact was taken this learning to push the next stage in our evolution
Which is what we’ve called get your guide originals get your guide originals are our branded vertically integrated fully controlled
walking tours in
20 cities in Europe. We launched this last year with the idea to innovate truly not only on the online experience
Which is what most online travel agencies do but truly innovate on the often experience our key insight
Is that if you think about tours if you think about experiences there has been no innovation
Frankly since every tourist were invented the operating model was you hire someone who speaks English and hope it works out
We however found that by looking at all the different customer data and all the different customer complaints
What are the things that truly delight customers and have built the experiences around them?
Which now scale tests over twenty cities
We’ve sold close to a hundred thousand tickets through our branded experiences and more importantly we’ve seen that the customer
Satisfaction is 30% higher on these original experiences than our regular tours and these 30%
Presents an amazing value add that we reap in terms of consumer loyalty
Get your originals is just one example of how we’re pushing the envelope on innovation and execution over the last 10 years
We’ve led the way in connecting more than 25 million customers to more than 50 thousand experiences worldwide
We have a team that is today more than 500 folks in
17 offices around the world and have received more than 650 million in funding in order to sustain our long-term vision
that we have for the business and
The idea is very simple. We think that not only do we want to become a European champion
But we want to follow the example of so many travel companies in the past
But should we build a global champion that is made in Europe?
Travel inherently has tremendous global network effects
It is very very hard to build a moat
but then also very hard to dislodge the global leader in any given category and
This is already evidently shown in our growth in our emerging markets such as the United States or the aedra regions were recurring
North of 100 percent in each of these markets
Last but not least I think
The exciting thing over the last 10 years is that we’ve really pushed not only in capturing market share
But also truly pushing on the innovation
We believe we’re on a 100 year journey to build a company that is giving consumers truly access to incredible experiences
This is the last frontier of travel and we think it is the most exciting one
So whether you are partner an investor or a customer, we believe we are creating a journey that we can all look forward to
Thank you very much
One question when you guys started there was a rebook question because you travel like two three times a year and people
Remember, maybe not that they used get your guide. Have you thought about launching like a bucket list product where the
Traveler locks in and can scratch off like the topsides by city to build some
long-term engagement
Absolutely. So we’ve created since then a wishlist feature. Yeah, where consumers can can save their things
But really when we talk to our technology teams internally one of the jokes that we say is you know
We want to create a version of catchy God that works like a Spotify playlist the moment you land in Paris?
You just hit play and then the moment you depart you hit stop
so the goal is really to how do we capture the entire consumer wallet off the entire trip so we know
Consumers do more than 15 activities per year whether it’s attraction tickets or experiences today
We’re only capturing a small minority of that and so even increasing the share of wallet within that trip and on the next trip
That’s where we see the big opportunity and have you integrated like concert organizers like a CTS event term
The live events. You also have them which are not like sites but more like sporadic. Absolutely
I think you’re pointing to this incredible opportunity that we have when it comes to multiple categories
Yeah today we extremely focused on the core categories that we do which is around core sightseeing attraction tickets
Walking tourist day trips and hop on them off tours
We think that expansion into a category such as shows and events outdoor expenses
maybe restaurants rentals boat rentals massive massive markets
But it’s requires this really really incredible focus on technology
And on your operations to do one category really well
Because if there’s one thing we’ve seen is that you must master the consumer experience to create multi and brand
Fantastic, thank you so much to say hi to your harness. I will
you