Tao Tao, co-founder & COO, GetYourGuide
Tao Tao will take part in Executive Roundtable: New Activities In The Destination Sector at Phocuswright Europe.
Ahead of the event, he discusses the problem with overtourism and the opportunities that still exists in the fragmented attractions space.
What topic should we be discussing right now, and why?
I’ll tell you which topic we should be discussing differently: overtourism. I was at ITB Berlin a few weeks back, where it was the word on everyone’s lips.
It’s true that overtourism is already a problem today, and one that will only grow in severity in the years ahead, but I was disappointed to hear far too many solutions being discussed that depended on restricting or discouraging travel.
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That is a missed opportunity, and we can do better. We should be having deeper conversations about how technology, regulation and education can help more people travel, and travel more sustainably. And this conversation must be had with all stakeholders, including OTAs, suppliers, customers and local communities.
What is the most misunderstood element of your role and your company?
I think the travel industry is just beginning to wake up to the enormous diversity that exists within our “in-destination activities” segment in the industry. On a purely product level, the difference between any two given hotels or flights is nothing compared to the difference between museum tickets, wine-tasting experiences, outdoor excursions, day trips… the list goes on.
What is the biggest opportunity in online travel in 2018?
Bringing more of it online. Period. This might not be as sexy as saying “machine learning,” but the truth is that there are still a few $10 billion-plus travel market segments that are transacted largely offline, including our own.
It’s been our central mission to change this since we started GetYourGuide almost a decade ago, and we still have a long way to go.
What single piece of advice would you give a new business entering the travel industry?
Don't worry if people tell you that it's going to be hard (that's what everyone told us at the beginning). Worry that your addressable market is big enough.
What accounts for the fragmentation in the attractions space, and how can technology be part of the solution?
It’s a numbers game: The attractions space is fragmented because there are thousands upon thousands of attractions, and even more “things to do” that may be fully or partially related to those attractions (or not related at all).
I’ll tell you which topic we should be discussing differently: overtourism.
Tao Tao - GetYourGuide
Compare that to the fact that there are about 360 commercial airlines worldwide. The more fragmented the market, the more value a digital marketplace like ours can bring.
How does competition in the attractions space change as companies like Airbnb advance their offerings, particularly on the peer-to-peer level?
At the moment, competition with Airbnb or other OTAs ranks low on the things we think about. As Phocuswright’s research has shown, all of us combined have captured only a tiny fraction of the total market.
The real competition is against prevailing traveler behavior: Too many travelers still wait until the last minute in deciding on tours and attractions, too many still think they need to make those purchases offline after standing in line for hours — and too many decide not to do anything at all.
What are the opportunities and challenges when looking at supply vs. demand?
The biggest opportunity we see is that there is no brand today that customers truly associate with in-destination experiences. We want to be that brand.