Oliver Batten
Lead – Destination Strategy & Sustainability
Embracing Verticalisation and Building Long-term Consumer Relationships
Okay, real talk – I didn’t even know what ‘verticalisation’ was until just a couple of hours ago. But after catching up on Johannes Reck’s (co-founder of GetYourGuide) interview at Skift’s Megatrends event in New York last year, my mind is ticking.
So, what is it exactly?
In short, verticalisation is about diving deep instead of going wide. Forget trying to be all things to all people; it’s about being the thing for your people. It’s like levelling up your business by focusing on one specific game – becoming the best in that niche.
The Rise of Vertical Search Platforms
Johannes spilled the beans on how the tourism industry is evolving, big time. Thanks to tech and the ever-changing wants of today’s savvy travellers, there’s a shift towards vertical search platforms – think GetYourGuide for travel experiences or Airbnb for places to crash.
Unlike your traditional search engines that try to cover everything (cough, Google, cough), vertical platforms are all about being niche. They give you exactly what you’re looking for, no fluff. This is where the future’s headed – specialised, tailored experiences that make the old one-size-fits-all approach look like yesterday’s news.
For tourism businesses, this is both a challenge and a goldmine. On the one hand, it requires a deep understanding of the platform’s algorithms, user behaviours, and trends within the niche. On the other hand, it offers the chance to connect with consumers who are already interested in what the business has to offer, making it easier to convert leads into loyal customers.
Johannes Reck, CEO and Co-founder at GetYourGuide, and Skift’s Sean O’Neill, Senior Hospitality Editor, at the Skift Megatrends event in New York, 2023.
Focusing on the Consumer Problem
In this new landscape, success is increasingly tied to a business’s ability to solve a specific consumer problem in unique and purposeful ways. Rather than trying to be everything to everyone, tourism businesses should concentrate on identifying a particular need or pain point within their target audience and developing offerings that address these issues directly.
For example, a travel company might specialise in eco-friendly tours for environmentally conscious travellers, or a hotel chain could focus on providing accessible accommodations for travellers with disabilities. Narrowing your focus lets you shine in a crowded marketplace.
And here’s the kicker: this approach not only helps in attracting the right customers but also in creating meaningful connections with them. When consumers feel that a business truly understands and caters to their specific needs, they are more likely to become repeat customers and advocates for the brand.
The Power of Personalisation
“Personalisation” might be a buzzword, but don’t sleep on it. In a world flooded with generic ads and cookie-cutter offers, giving your customers a truly personalised experience is the ultimate power move. Whether it’s customised travel itineraries or spot-on recommendations, personalisation is your ticket to a deeper connection with your audience.
However, the key to successful personalisation lies not in simply collecting and analysing customer data, but in using that data to enhance the overall customer experience. It’s about anticipating the needs of the traveller and delivering solutions that exceed their expectations.
Cue AI and machine learning…
AI & Machine Learning
With AI and machine learning, businesses can analyse mountains of data to uncover patterns and insights that would be impossible for humans to spot. It’s like having a crystal ball that helps you predict what your customers want before they even know it themselves. Imagine being able to suggest the perfect travel experience based on someone’s past behaviour or even their current mood. That’s the kind of hyper-personalisation that turns casual customers into raving fans.
And it’s not just about making things easier – it’s about making things better. AI-driven personalisation can enhance every touchpoint in the customer journey, from the moment someone first lands on your site to the follow-up emails that keep them engaged long after their trip is over.
So, while not everyone has the resources to make big investments in these new tech solutions, you can certainly invest some time into understanding their importance and how to work towards integrating them into your business processes – you’d be silly not to.
So, what does this all mean?
Here’s my thoughts…
While verticalisation might have gained traction through the rise of online search platforms, its principles extend far beyond the digital realm. At its core, verticalisation is about clarity – identifying the unique value you can bring to the table and focusing relentlessly on delivering it. It’s a mindset that applies to any business, in any industry.
When you’re genuine in your approach, smart in your execution, and committed to offering stellar service, you’re not just building a business – you’re creating a thriving community. Consumers today crave authenticity and are drawn to brands that truly understand and meet their specific needs. By narrowing your focus and going deep rather than wide, you connect with your audience on a level that transcends mere transactions.
In the end, verticalisation is more than just a trend; it’s a strategy for sustainable success. It’s about being the best at what you do, fostering real relationships, and making a lasting impact on your customers and your community. When you get that right, you’re not just participating in a market – you’re leading it.
Finally, a quick shout out to Skift’s Sean O’Neill for facilitating an awesome interview and for asking the big questions. You can watch the full interview online here or on YouTube.
