Research Insights 1 in 3 travel startups are lodging-centric

1 in 3 travel startups are lodging-centric

January 2022
Phocuswright Research

Lodging verticals Hotel & Hostel and Short-Term Rentals are the most vibrant, collectively representing 30% of all startups (since 2010) analyzed in Phocuswright’s latest travel research report The State of Travel Startups 2021.

Acceleration of emerging startups in the short-term rentals vertical is evident, highlighting the consumer opportunities and related B2B technology and distribution needs of the segment.

Air and Tours & Activities are tied as the third-largest vertical of startups, each accounting for 10% of the travel startup universe.

Over the years, the Air vertical has garnered fewer startups, slipping from the top vertical. Still, as the air segment matures, startups are addressing challenges beyond booking, including New Distribution Capabilities (NDC), ancillaries, price holds, and broader operational solutions such as weather, flight analytics, etc.

Phocuswright Chart: Travel Startups, Share by Primary Vertical
(Click image to view a larger version.)

Phocuswright has tracked the digital travel startup landscape for well over a decade, and innovation in the travel industry has flourished during this period. Though the COVID-19 pandemic has had a severe impact on travel startup activity and funding, a rebound is underway, with some companies and categories demonstrating considerable resilience. Leveraging Phocuswright’s proprietary interactive database and in-depth interviews, this updated report provides a comprehensive assessment and outlook for travel startups in today’s challenging environment.

Specific topics include:

  • Analysis by year, type, region and category
  • Funding activity by stage
  • Market trends driving investment
  • Focus on key verticals

To explore the data behind this analysis, please check out The State of Travel Startups Interactive Database – available for Open Access subscribers.

Subscribe to Phocuswright Open Access and download this report and the entire Phocuswright research library for you and your company. The subscription also gives you access to Phocuswright’s data visualization tool, which lets you cut and slice global travel market and segment data as you choose. Subscriber here.