In this conversation, Rod Cuthbert, the founder of Viator, shares his journey of transforming travel booking online. He reveals how Viator was born from a failed partnership and his foresight regarding the decline of traditional travel agents. Rod discusses navigating startup challenges, securing investment, and the eventual acquisition by Tripadvisor. He emphasizes the importance of innovation and personal connections in the travel industry while reflecting on the joy of discovering local cultures through food.
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Quick takeaways
Rod Cuthbert transformed the travel booking landscape by leveraging the internet to pre-book experiences, anticipating the decline of traditional travel agents.
Viator faced significant challenges securing funding in its early days, highlighting the precarious nature of startup life and investor skepticism.
The introduction of 'skip-the-line' tours by Viator significantly enhanced traveler convenience, responding to a growing demand for unique and immediate experiences.
Deep dives
Founding Viator and Identifying an Opportunity in Travel
Rod Cuthbert recognized the challenges of booking travel experiences and sought to create a solution through Viator, a platform designed for tourists to pre-book tours and activities. During the late 1990s, he saw the potential to leverage the internet to simplify the booking process, which traditionally required travelers to book experiences only upon their arrival at the destination. His background as a web designer for travel agencies in Australia informed his approach in establishing a business that could streamline reservations for activities globally. Despite initial struggles to make the concept resonate with consumers, Cuthbert remained persistent, laying the groundwork for what would become a significant travel brand.
Navigating Financial Challenges and Near Collapse
Viator faced significant cash flow issues by 2005, threatening its survival just as it was gaining traction in the market. Rod Cuthbert spent months attempting to secure funding in Silicon Valley, where he encountered numerous rejections, as many investors believed the timing was not right for such a business model. A chance encounter with an investor became a decisive moment, allowing Viator to secure vital funding that would keep the company afloat. This period highlighted the precarious nature of startup life and the challenges that come with attracting venture capital.
Innovating with Skip-the-Line Tours
A key innovation introduced by Viator was the concept of 'skip-the-line' tours, which revolutionized how travelers experienced popular attractions. Rod Cuthbert and his team recognized the inefficiency faced by tourists waiting for hours in line at major sites like the Vatican Museum and proposed a premium service that could offer immediate access. This idea caught on rapidly, leading to increased bookings and the development of further exclusive experiences. As travelers began prioritizing unique and convenient experiences, Viator's growth accelerated, catering to a changing market that valued experiences over traditional sightseeing.
Acquisition and Industry Transformation
In 2014, Viator was acquired by TripAdvisor for an estimated $200 million, marking a significant milestone in its journey. Rod Cuthbert's vision and innovation laid the groundwork for this outcome, as the company had solidified its position in the travel industry by offering accessible and diverse experiences. This acquisition not only validated Viator's business model but also reflected the broader transformation in the travel sector, where online platforms began to dominate. As consumer preferences shifted toward personalized adventures, Viator thrived by adapting its offerings to meet evolving traveler demands.
Legacy and Ongoing Influence
Today, Viator continues to play a leading role in the travel experiences market, generating billions in gross revenue while remaining true to its mission of providing convenient booking for experiences. Rod Cuthbert's journey from Tasmania to becoming a successful entrepreneur exemplifies the impact of adaptability and innovation in a fast-evolving industry. After departing from Viator, Cuthbert took on leadership at another venture, Rome2Rio, further showcasing his expertise in travel technology. His story serves as an inspiration for budding entrepreneurs, emphasizing the importance of persistence, seizing opportunities, and understanding market trends.
Clicking a button to book vacation tours might feel normal today, but Rod Cuthbert helped create that future through his company, Viator. Founded in the early days of the internet boom, Viator emerged almost by accident from a failed partnership with another company. As online booking grew, Rod correctly predicted that travel agents would become outmoded, and began working with local providers to help travelers book anything from skip-the-line tours of the Sistine Chapel to cooking lessons in a Thai kitchen. Viator was purchased in 2014 by Tripadvisor for $200 million–and remains a top virtual destination for anyone headed to a real one.
This episode was produced by Devan Schwartz with music composed by Ramtin Arablouei. This episode was edited by Neva Grant, with research by Olivia Rockeman. Our audio engineers were Robert Rodriguez and Gilly Moon.