This content was created by Max Brun. This content was uploaded by Max Brun. This is a YouTube clip titled "The Playbook Luxury Escapes Uses To Launch New Markets (Adam Chat Clip)" (published 2021-11-23). The excerpt is an interview-style exchange between two speakers (labelled SPEAKER A asking questions and SPEAKER B answering) discussing Luxury Escapes’ market footprint (Australia, US, UK, India, New Zealand, Germany, Asia), growth during COVID, total addressable market (TAM) and TTV ambitions, and their go-to-market playbook (digital channels like SEM and social, some influencer and partnership activity) plus the distinction between their Flash product and Marketplace for scaling supply globally. The clip appears to be a business/product strategy discussion about launching and scaling in new markets.
Chapters
So you did kind of mention the team, I guess around 30 or so, and as far as kind of in markets and onboarding supply. So how many markets do you operate in? And then what is kind of like the playbook to launch in new markets for you?
So yeah, 30 is sort of the sub-team that's working on marketplace content. We've got 300+ in the business and then it varies from different roles. So we've historically been an Australian customer-centric business. Pre-COVID, 90% of our revenue came from Australia. So we had business in UK, US, Singapore, Hong Kong, New Zealand, India, in reverse order to start. And they're all about the same size, those businesses, kind of doing $5 or $6 million to $10 million a year. What we've seen through COVID is US has just exploded. US travelers could go anywhere largely during COVID whereas no one else in the world really could. So US business sort of 3x'd over COVID and is sort of growing strongly, sort of tapered off a little bit last few months, still significantly up pre-COVID, but just that rampaging growth has slowed. The UK has sort of gone back to record levels, beating pre-COVID. India's at record levels. New Zealand slowed a bit because they're locking down, and Asia hasn't really opened up yet. But we see, we certainly see, if you look at the size of those markets, whilst we've got much better penetration in Australia, Australia is about, well, a sixth of the size of the US market in that population a bit higher, we slightly higher spend per capita, and about sort of half of the UK and half of Germany. So if you look at our sort of market or TAM, Australia is probably 5 to 10% of global TAM for us, if not less. So we think we can get to sort of a couple of billion in TTV in Australia, best case. Question is, can we multiply that penetration globally to get $20 billion TTV globally? Probably not, in fairness, but what can we get to from a global perspective? And then how do we focus on market by market and how do we approach it? And historically, mostly heavy lifting on digital. So it's mostly through sort of SEM, social, those channels. A little bit of influencer stuff, a little bit of partnerships, but we haven't really gone that hard other than sort of markets like India where a bit more mature for us. But certainly UK, US, Germany are exciting new markets. I put India, New Zealand a little bit more mature, but still far. India's got huge growth potential and it's sort of been a really nice straight line. really well-run country for us. But we see great potential in the US. We think our product's fantastic for the US market, especially as we get not so much flash but marketplace. So flash, the problem with flash is it's a business of scale. So because we've had this great Australian pool of customers and we do what generally is flop and drop. So flash is perfect for your Maldives, your Thailands, your Balis, your Singapores, your Vietnams. within Australia. It's not so good for Australians going to New York because Australians tend to travel to the US for 20 days, 7 destinations. We didn't have that in Marketplace for Flash. We have that at Marketplace. So we think, and same with Europe. So we think Marketplace is a much, much better product for the US and European markets and for Australians going to those markets. So super excited about what Marketplace can take the business to, going from a kind of sub-billion TTV or call it hopefully billion TTV next year to multiples of that as we're able to scale supply so significantly.
