Experiences Tech & Distribution. And Maybe Some Other Travel Industry Stuff #3
Welcome to the third edition of the Magpie Newsletter, covering technology and distribution in the experiences sector of travel.
1. Peek Raises $80 Million
Peek secured $80 million in Series C funding, up significantly from its $23 million Series B in 2018. This represents one of the largest reservation technology investments to date, with only KKDay's $75 million round coming close (though KKDay operates primarily as an OTA). Founder and CTO Oskar's vision focuses on a distinctive strategic direction rather than global expansion or competitor acquisitions.
2. Magpie Announces Google Things-to-Do Integration
Google Things-to-Do continues to generate significant industry interest and some confusion. The program is already live and driving substantial traffic, particularly to OTAs. Operators can receive free traffic without commission costs, with some products generating 100-200 free clicks per day and conversion rates between 10-20%. The recommendation is to register and optimize listings now rather than waiting for perfect conditions.
3. COVID Efficiencies
A major global sightseeing operator revealed striking efficiency gains from pandemic-driven restructuring. When comparing staffing levels, current global headcount sits at roughly 50% of 2019 levels -- and projected staffing at full 2019 occupancy would remain at 50%. This suggests permanent cost reductions achieved through operational changes during lockdowns.
4. Data Standards
Industry discussions around data standardization gained momentum following commentary on GTFS standards in ground transportation. A standards forum was planned for Arival in San Diego to drive innovation and establish common frameworks for the experiences sector.
5. Viator Accelerator
TripAdvisor's CEO confirmed that increasing commission rates improves organic placement on Viator. While commission-based algorithm sorting is not new in practice, offering this adjustment at scale to multiple operators represents a notable shift in transparency.
6. GetYourGuide's Ecosystem Pivot
GetYourGuide signaled a transition from a pure OTA model toward an ecosystem player, with expanded technology offerings including website solutions, ticketing systems, and in-destination merchandising software. This vertical integration approach differs from their previous "Originals" strategy of acquiring and branding operator experiences, which appears to have been deprioritized.
7. Travel Conferences and Trade Shows
Three major events took place:
- WTM London -- Approximately 30-40% of normal attendance
- Tourism Innovation Summit Seville -- Full Arival programming included
- Phocuswright Fort Lauderdale -- Well-attended with content available on YouTube
8. Tourpreneur Podcast
Shane Whaley's Tourpreneur podcast surpassed 200,000 downloads, providing valuable resources for tour operators through episodes and a companion Facebook Group at tourpreneur.com.
9. Fundraising Roundup
- FunNow (South Korea): $15 million Series B with KKDay participation
- Connect&Go (Canada): $3 million for attraction software solutions
- Borrow a Boat (London): $1.4 million through crowdfunding
Events
Arival -- San Diego: February 1-4, 2022