Consumers are continuing to spend on experiences over traditional retail goods. According to the U.S. Bureau of Economic Analysis, American consumer spending on experiences grew twice as fast as spending on goods between 2000 and 2019.
Travel experience marketplace GetYourGuide confirms this trend: booking volumes in the first quarter of 2023 are four times higher than in the first quarter of 2019. The travel experiences category is quickly growing, benefiting from a generational shift in consumer spending habits.
Keeping up with the rebounding of the tourism industry, Berlin-based GetYourGuide is announcing today the closing of €182 million in equity and credit financing. The round represents a valuation increase for the company and solidifies its leadership position in the industry. The strategic investment will be deployed to expand GetYourGuide’s marketplace in key geographies such as North America and accelerate product innovation for both travelers and experience creators globally.
Blue Pool Capital led the €80 million Series F funding round, with participation from KKR and Temasek. UniCredit led the Revolving Credit Facility (RCF) of €102 million, with participation from BNP Paribas, Citibank and KfW.
“In the current market, we view this as a vote of confidence from our investors who believe passionately in unlocking unforgettable experiences for travelers around the globe,” said Johannes Reck, CEO and co-founder of GetYourGuide. “We are still early in the transformation of our category and the larger $300 billion category and the even larger $1.5 trillion experiences market. And our technology is poised to help drive innovation and growth for our partners and customers alike,” added.
Reck has always chosen to learn from every step of their entrepreneurship journey. He said to EU-Startups in an interview in 2018 they credited their success to their dedication to infinite learning. “In the early days, our only advantage was our ability to learn fast and turn those learnings into growth. Today, a lot has changed at GetYourGuide, but that advantage remains the core of our success, and one of our most highly-prized core values”, said back in the day.
This new investment will help increase the pace of innovation for travelers and supply partners, leveraging the rapidly progressing capabilities of AI and Large Language Models (LLMs). The acceleration of product investment will not only help travelers make the most of their travels, but also empower supply partners to manage and grow their businesses on the platform with intuitive tools. Back in October 2020, the company raised €114 million in convertible note financing led by Searchlight Capital.
“There is immense opportunity in the digitization of the experiences industry, and we believe GetYourGuide’s global leadership and market-leading customer-centricity in the category stems from its deep expertise in this complex space,” said Oliver Weisberg, CEO of Blue Pool Capital. “We believe GetYourGuide is uniquely positioned to be the global leader in the category; we are pleased to lead the equity financing given the strength of the business,” added Weisberg.
The funding comes in time to kick off peak travel season, where record-breaking engagement is expected on GetYourGuide’s platform. Part of driving this increased engagement are Originals by GetYourGuide, the company’s signature co-created tours with exclusive activities and access, such as NYC: MoMA Before Hours Tour with Art Expert; London: Coronation Tour; Milan Cathedral & Terraces Exclusive After-Hours Tour; and Turning the Lights on at the Vatican Museums.
Read the orginal article: https://www.eu-startups.com/2023/06/berlin-based-getyourguide-secures-e182-million-to-further-digitize-travel-experiences-with-ai-and-llms/
