GetYourGuide widens its horizons, will expand its Originals short tours into day trips and more

GetYourGuide has made a name for itself as the startup that helped the stale idea of guided tours for travellers on its head. Tapping into the generation of consumers who think of travel not just as going somewhere, but having an “experience” (and, ideally, recording it for Insta-posterity), it has built a marketplace to connect them with people who will help guarantee that this is what they will get. It’s a concept that has helped it sell more than 25 million tickets, hit a $1 billion valuation, and raise hundreds of millions of dollars in VC funding.

And the startup has grown quite a lot since passing the 25 million mark in May. “We’ve had 40 million travelers over the last 12 months. We’re the market leader in every European geography. We’re #2 in the U.S. and about to become #1,” co-founder and CEO Johannes Reck said at TechCrunch Disrupt Berlin.

Now GetYourGuide is taking the next step in its strategy to expand its touchpoints with users, and grow and diversify its business in the process. The company is expanding its “Originals” business — its own in-house tour operation — into one-day tours and other longer journeys, with the aim of hitting 1 million sales of Originals this year. It will kick off the effort with a small number — between five and 10 — one-day tours in different exotic locations. Examples will include “dune-bashing in Dubai,” glacier excursions from Reykjavik, and trips to Bali’s “most instagrammable hidden spots.”

GetYourGuide Originals have been working well. “We’ve had tremendous success, we have an average score of 4.8 [out of 5] compared to 4.4 for the other marketplace activities,” Reck said. Originals have a 40% higher repeat rate than other activities.

“And we’re now extending it to day trips. For those who are not familiar with the travel experience, day trip is the single biggest vertical inside of experiences,” Reck said.

Originals was launched a year and a half ago as a way for GetYourGuide to build its own tours — which it kicked off first with shorter walking tours — as a complement to the marketplace where it offers travellers a way of discovering and purchasing places on tours organised by third parties. Today it offers 23 different Originals in 17 cities like Paris, London, Berlin and Rome.

Up to now, GYG has sold some 200,000 places on its Originals tours — which is actually a tiny proportion of business, when you consider that the number of tours booked through the platform has passed 25 million.

The startup likes to describe its own Orignals as “like Netflix Originals, but in the real world!” And that analogy is true in a couple of ways. Not only does it give GYG more curatorial control on what is actually part of the tour, where it’s run, who guides it and more; but it gives the company potentially a bigger margin when it comes to making money off the effort, and means it does not have to negotiate with third parties on revenue share and other business details.

That’s, of course, not considering the challenges of scaling in this way.

Adding in more Originals and extending to transportation to get to the destination (and potentially staying overnight at some point) will mean taking on costs and organizational efforts, and risks, around more operational segments: making sure vehicles are safe and working, that hotels have clean sheets (and rooms), and more. More things can go wrong, and customers will have many more reasons to complain (or praise). It will be one of those moments when the startup will have to rethink what it’s core competency is, and whether it can deliver on that.

On the other side, if it works, GYG will diversify its the business while finding new revenue streams. But the strategy to grow Originals is a logical next step for other reasons, too.

The most important of these is probably competition: GYG may have been the pioneer of hipster travel experiences, but today it is by no means the only company focusing on this segment. Companies like Airbnb and TripAdvisor have tacked on tours and “Experiences” as a complement to their own offerings, as ways of extending their own consumer touchpoints beyond, respectively, booking a place to say or finding a cool place that popular with locals, or figure out what attractions to see.

Get Your Guide needs to find ways of keeping existing and new users returning to its own platform, rather than simply tacking on its tour packages while organising other aspects of their vacation.

The other is that, as Get Your Guide continues to break ground on changing the conversation around travel, building its own content rather than relying on others to fulfil its vision will become ever more essential, and paves the way for how the company will approach adding ever more components into the chain between your home and your destination.

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