Should GetYourGuide prioritize expanding its tour inventory or improving the existing booking experience for popular attractions?

Introduction

The trade-off between expanding GetYourGuide's tour inventory and improving the existing booking experience for popular attractions presents a critical strategic decision. This scenario involves balancing growth through increased offerings against enhancing user satisfaction and conversion rates. I'll analyze this trade-off by examining key business factors, user impact, technical considerations, and resource allocation.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming GetYourGuide is facing increased competition in the tour booking space. Could you provide more context on our market position and recent growth trends?

Why it matters: Helps determine if expansion or optimization is more critical Expected answer: Moderate growth, increasing competition Impact: High competition would lean towards improving existing experience

• Business Context: Based on our revenue model, I'm thinking commissions from bookings are our primary income. What percentage of our revenue comes from the top 20% of attractions?

Why it matters: Indicates potential impact of focusing on popular attractions Expected answer: 60-70% of revenue from top attractions Impact: High percentage would prioritize improving booking experience

• User Impact: Considering user behavior, I'm curious about our current conversion rates for popular vs. less known attractions. Can you share any insights on this?

Why it matters: Helps identify where improvements could have the most impact Expected answer: Higher conversion for popular attractions, but with room for improvement Impact: Low conversion on popular attractions would prioritize experience improvements

• Technical: Regarding our current platform, I'm wondering about the scalability of adding new inventory. What's our current capacity for onboarding new tours?

Why it matters: Determines feasibility of rapid inventory expansion Expected answer: Moderate scalability with some technical debt Impact: Low scalability would favor improving existing experience first

• Resource: Thinking about our team structure, how are our product and engineering resources currently allocated between new feature development and optimization?

Why it matters: Indicates our ability to tackle both initiatives simultaneously Expected answer: 70% new features, 30% optimization Impact: Heavy allocation to new features might suggest a need to balance with optimization