Travel – be it international or domestic; business or leisure – came to a grinding halt as a result of the spread of COVID-19. In the first four months of the year, Europe reportedly witnessed a 44% decline in international tourist arrivals compared to the same period last year. Tourism job losses in Europe in 2020 could be massive – ranging between 14.2M to 29.5M.
The uncertainty in the sector still remains as COVID-19 cases have started to surge again in Europe. Many countries such as the UK and France have imposed nation-wide lockdown again, to curb the spread. The struggling sector is currently trying to offer all sorts of precautions in order to revive its consumer confidence. However, some travel startups are still proving to be quite resilient.
Travel booking company raises €114M
In a recent development, a Berlin-based online travel booking company GetYourGuide has raised €114M via a convertible loan led by Searchlight Capital.
Existing investors including SoftBank Vision Fund, KKR, Battery Ventures, Highland Europe, Spark Capital, Lakestar, Heartcore Capital, and NGP Capital, as well as the company’s own founding team and others have also participated in this round.
According to the UN World Tourism Organisation, forecast scenarios indicate that 2021 and 2022 will feature a double-digit rebound for global tourism after the pandemic resolves, traveler confidence increases, and pent-up demand is unlocked.
To capture the market opportunity, GetYourGuide plans to continue to invest in strategic initiatives, develop its digital product and signature Originals experiences, and build out its global inventory to cater to post-pandemic travelers’ latest preferences and hygienic standards.
About GetYourGuide
Berlin-based GetYourGuide operates an online platform for booking tours, attractions, and activities worldwide. The platform sells tours and excursions, activities including cooking classes, and tickets to many tourist attractions. The company also runs its business by curating, selling tickets for running walks, and other exploration experiences for people touring different parts of the world.
The business model for GetYourGuide stipulates that it does not offer its own tours or activities, but rather, acts as a mediator between customers and providers. The service is free for customers, but the provider of the tour has to pay GetYourGuide a percentage of its revenue.
GetYourGuide also offers a customer review system that enables potential customers to assess the quality of tour providers. Additionally, the platform removes providers who consistently get bad reviews from its inventory.
The company was founded in 2009 by Jochen Mattes, Johannes Reck, Martin Sieber, Pascal Mathis, Tao Tao and Tobias Rein.
Travel & Tourism sector gearing for revival
Tourism businesses are looking to resume activities and destinations across Europe, after the pandemic.
“After the pandemic, people will travel again, and experiencing the sights and culture of the world’s iconic destinations will be what they crave the most,” says Johannes Reck, CEO, and co-founder of GetYourGuide.
He further adds, “As the global tourism industry prepares to rebuild, GetYourGuide’s mission to give the whole world access to incredible experiences matters more than ever.”
According to the company, travelers from over 170 countries have booked more than 45 million tours, activities, and attraction tickets through the platform. The company has a global team of over 550 travel experts and technologists and has offices in 14 countries around the world.
LionTree, Latham & Watkins, and Walder Wyss acted as advisors to GetYourGuide on this transaction.
Previously raised capital
Earlier this year in May, the company had bagged $484M (approx €416M) in its Series E round of funding led by the SoftBank Vision Fund. Co-investors Temasek, Lakestar, Korelya Capital, and Heartcore Capital (formerly Sunstone Capital), as well as existing investors such as Swisscanto Invest by Zurcher Kantonalbank, also participated in this round.
Back in 2017, GetYourGuide secured $75M (approx €64.4M) in its Series D round of funding led by Battery Ventures. Besides, all of the company’s existing venture partners also participated in the round.
Prior to that in 2015, the company had raised $50M (approx €42.9M) in funding led By KKR, a global investment firm. New investor Nokia Growth Partners (NGP), joined this round. The company’s existing investors, Spark Capital, Highland Capital Partners, and Sunstone Capital also invested in the round.
In 2013, the platform had raised $14M (approx €12M) in its Series A round of funding from Spark Capital and Highland Capital Partners Europe. And in 2014, it raised an extension of the same round of $4.5M (approx €3.8M) led by Kees Koolen, (former CEO of Booking.com), and Fritz Demopoulos (founder and former CEO of Qunar.com). Sunstone Capital, a European venture capital firm, also participated in the round.
The company claims to have a global team of over 550 travel experts and technologists. It is headquartered in Berlin, Germany, and has offices in 14 countries around the world.
Image credit: GetYourGuide
