Zartico is the maker of the first Destination Operating System and it harnesses and streamlines big data using science, AI, and technology to provide unprecedented visibility into the movement of people and economic opportunities. Pulse 2.0 interviewed Zartico CEO Sarah Lehman to learn more about the company.
Sarah Lehman’s Background
What is Sarah Lehman’s background? Lehman said:
“My career has been rooted in a passion for combining human ingenuity with technology to tackle the world’s most challenging problems. When I discovered Zartico — a company solving tough issues in an industry that is so vital to global employment and economies — I was immediately drawn to its mission.”
“Before Zartico, I served as CEO/President of ENVE Composites. There I led the transformation of a company on the brink of bankruptcy into one of the most respected companies in the cycling world. This journey culminated in the successful acquisition of ENVE by Amer Sports Group, and I was honored with recognitions such as CEO of the Year by Utah Business Magazine and Entrepreneur of the Year by Ernst & Young.”
“By the time of the sale, my children were entering their teen years, and I knew they were watching me and learning from my decisions. Part of my decision to shift into tech was my desire to show them the value of doing hard things.”
“I immersed myself in the tech world, navigating new complexities ranging from business lingo to cutting-edge technologies like big data and AI to raising money. I entered a new world, but I’m surrounded — then and now — by the brightest, most passionate people determined to solve the biggest problems facing our beloved destinations. Zartico’s mission is bigger than any one person, and it is through our conviction that the sum will be greater than each of the parts that we can have an impact.”
“My professional journey has spanned several industries, including biotech, manufacturing, and consumer products, and encompasses experiences ranging from startups to Fortune 50 companies. I have an MBA from Harvard Business School and a BA/BS from Boston University.”
Formation Of Zartico
How did the idea for Zartico come together? Lehman shared:
“Co-founders Darren Dunn and Jay Kinghorn saw the same problem from different vantage points: managing our beloved tourism destinations and tourism-related businesses is becoming more difficult in today’s world.”
“The organizations tasked with stewarding these places have long relied on backward-looking, slow-moving reporting tools. This lack of situational awareness and forward-looking insights prevents a place from realizing its potential. We had a vision for how technology could solve this seemingly insurmountable challenge, so we set off to create that solution.”
Favorite Memory
What has been your favorite memory working for the company so far? Lehman reflected:
“After hiring and working with the team for almost a year without ever meeting them in person (both because we are a remote-first company and because we launched our first product in March of 2020), we were finally able to hold our first all-company meeting, which we call Base Camp. It was incredible to make personal connections with the team and share our vision and excitement.”
“The stage the company is in today stands out as well, as it marks the culmination of relentless dedication and unwavering perseverance toward realizing our vision. After almost five years of tireless effort, we’re standing on the brink of delivering unparalleled value and service to our clients and stakeholders. Our team has remained resolutely committed through challenges and triumphs, and their investment in both our product and our culture is paying dividends.”
Core Products
What are the company’s core products and features? Lehman explained:
“Zartico is a SaaS technology company that uses data science and AI to create strategic planning and marketing optimization solutions for destination leaders. Our core product is the Zartico Destination Operating System (or ZDOS), which combines four high-resolution data sources: lodging, spending, event, and geolocation. To these four data sources, we apply rigorous proprietary and patent pending data science methodologies to produce actionable data insights. These insights inform destination leaders who seek a competitive advantage, situational awareness, and answers to ‘why, how, when, and who’ — not just ‘what.’”
“These answers enable destination organizations — and the stakeholder businesses that support their visitor economies — to optimize strategies, allocate resources effectively, and tailor marketing campaigns to meet anticipated demand fluctuations. By leveraging the power of big data and AI, our tools help our clients de-risk their decision-making and influence the future of their communities.”
Challenges Faced
What challenges have Lehman and the team faced in building the company? Lehman acknowledged:
“We are trying to solve problems that have never been addressed before. One of the foremost hurdles we face is in recruiting individuals who possess the unconventional thinking and boundless creativity necessary to confront these challenges head-on.”
“To overcome this obstacle, we are focusing on the message around our mission. By passionately communicating the transformative potential of our work, we attract like-minded individuals who are drawn to the prospect of being part of something larger than themselves. We seek out those who are not only innovative and collaborative but also share our belief in the power of forward-thinking solutions.”
Evolution Of Zartico’s Technology
How has the company’s technology evolved since launching? Lehman noted:
“While our mission remains unchanged, our company’s product and technology are nearly unrecognizable today from what we launched in 2020. We initially offered a data warehouse/dashboard solution, but we quickly realized that our clients needed something more than another reporting tool. So we innovated to focus on forward-looking decision-making. ZDOS transformed from a data warehouse system to a continuous strategic planning solution that transforms our powerful big data sets into actionable insights to propel destination marketing efforts.”
Significant Milestones
What have been some of the company’s most significant milestones? Lehman cited:
“We launched our MVP the week before the world shut down for COVID. With no events to sell our B2B software and cash dwindling fast, we were facing a significant cliff with just months to spare. A now-famous RV trip — where the team ‘took the tradeshow to the people’ — changed our trajectory and we started to grow.”
“Growth meant that we had to build a work-from-anywhere organization, quickly and with few models to look to. The only one I could find was GitHub. So we started building our remote-first company, coincidentally at a time when no one could travel or gather, anyway!”
Customer Success Stories
After asking Lehman about customer success stories, she highlighted:
“Our company is headquartered in Salt Lake City, and we were honored to have the local tourism board become one of our first clients. In preparation for the 2023 NBA All-Star events, Visit Salt Lake CEO Kaitlin Eskelson turned to Zartico. We analyzed visitation and spending trends from past events, and Kaitlin used that information to work with the Mayor’s office and other stakeholders to prepare the city, equipping local leaders and business owners with information to make the most of the opportunity.”
“Post-event data shows that cross-visitation was greater for the NBA All-Star game than for most conventions as visitors traveled to well-curated events including the celebrity game and skiing at local resorts.”
“This was good not just for Salt Lake City, but for all of Utah. NBA commissioner Adam Silver praised Utah as a host for All-Star Weekend, and the estimated economic impact set a record at roughly $280 million. Recently Visit Salt Lake carried these analyses and predictive insights into conversations surrounding their bid for 2034 Winter Olympic Games.”
Funding
Upon asking Lehman about the company’s funding, she revealed:
“In September 2022, Zartico secured $20 million in Series A funding, which we have used to launch version 3.0 of the ZDOS and bring robust data analytics to the tourism industry. Minneapolis-based Arthur Ventures led the funding round, and they continue to be excellent partners in this stage of our company’s growth.”
Total Addressable Market
What total addressable market (TAM) size is the company pursuing? Lehman assessed:
“The tourism industry is undergoing a revolution driven by big data analytics. Smart tourism is rising as businesses use data to create personalized travel experiences. This trend is expected to continue, with the global tourism industry big data analytics market projected to grow at a CAGR of 8% from 2023 to 2033.”
“According to Future Market Insight, the global tourism industry’s big data analytics market is $225.4 billion in 2023 and will reach $486.6 billion by 2033. The tourism industry in North America has been at the forefront of utilizing big data analytics and represents $111.9 billion.”
Differentiation From The Competition
What differentiates the company from its competition? Lehman affirmed:
“As far as I know, Zartico is the only company in the world that ingests, cleans, and applies data science to these four key data sets: geolocation, spending, events, and lodging. These data sets are continuously feeding into machine learning and our AI capabilities to create a tool that allows our clients to find more of the right visitor at the right time.”
“This will be rocket fuel for future-focused clients looking to optimize decision-making.”
Future Company Goals
What are some of the company’s future company goals? Lehman pointed out:
“As more data and computational power become available, the realm of AI possibilities will continue to expand, and Zartico is staying at the forefront of AI technology. Applying these powerful tools to the right problems is the key to any AI endeavor, so we’re committed to continuing our trailblazing with technologies that answer the timely questions that destinations are asking.”
Additional Thoughts
Any other topics you would like to discuss? Lehman concluded:
“Operating with transparency is paramount, especially in the realm of new technology. We understand the importance of openly sharing our methodologies to foster collaboration, innovation, and trust within the industry. We are pioneering transparent methodologies that not only enhance understanding but also invite constructive feedback and scrutiny from peers and stakeholders.”
“We also recognize the importance of protecting our intellectual property and ensuring that our innovative methods are safeguarded. To this end, we are pursuing patents for our methodologies, not only to secure our innovations but also to contribute to the collective advancement of technology as we share our discoveries with the world. Through this dual approach of transparency and intellectual property protection, we aim to cultivate a culture of openness and accountability while driving forward progress in our field.”
