Special Report: Tours and activities market is looking for a big star to match big investments

This is part two of our three part series on the online tours and activities market, focusing on the buzz around venture-backed startups in the space. Part one here. There are only a handful of companies that matter these days in selling tours and activities, and they are a mix of old-guard established companies, a hungry wannabe, and an online travel agency making some overtures. And, although there has been venture capital money funneling into the sector, the track record has seen a paucity of success stories. "There are never any winners in the space," one experienced travel-industry investor chimes in, dismissing the tours and activities sector. Viator's long wait Case in point, observers say, is Viator, an established online player, founded in 1995, that has raised some $20 million in funding from investors, including Carlyle Venture Partners and Technology Venture Partners. Viator is thought to be doing roughly $200 million in annual sales as it aggregates tours and activities online, and provides white-label services to a bevy of partners ranging from Air France and InterContinental Hotels Group to Priceline and TripAdvisor. Viator this week announced another partnership deal, with the smallish startup, Beach.com. But you can imagine the frustration that must be in full force at Viator as a relative newcomer, GetYourGuide, steals some of Viator's thunder, and in five years has almost raised as much funding at $16.5 million. A slog of 18 years is a long time to wait for an exit as Viator's valuation is undoubtedly an issue for existing investors and potential buyers. As tours and activities becomes a bigger area of focus for outside investors and internal- company investments, Viator is also getting pinched by high cus