Research Insights
Fast Facts: The State of Travel Startups - Winners When the Industry Recovers
View the presentation below:
While startup challenges are not unique to travel, some of the underlying technologies and fundamentals of the industry create larger barriers startups must overcome to succeed. To add to the challenge, most of the time, the first idea is not the one that ultimately succeeds, so it is essential to fail fast and pivot early.
Then there is competition. Customer acquisition challenges. Convincing an industry corporate to move ahead with a trial of the product. Executing the technical requirements and getting the commercial buy-in from all the different stakeholders is extremely time consuming.
Now insert a near shut-down of the industry due to COVID-19 and you can multiply the challenges ten-fold.
In the presentation, Phocuswright shared data and analysis to help map out how startups and travel funding are impacted during this crisis.
In the presentation, you will:
Then there is competition. Customer acquisition challenges. Convincing an industry corporate to move ahead with a trial of the product. Executing the technical requirements and getting the commercial buy-in from all the different stakeholders is extremely time consuming.
Now insert a near shut-down of the industry due to COVID-19 and you can multiply the challenges ten-fold.
In the presentation, Phocuswright shared data and analysis to help map out how startups and travel funding are impacted during this crisis.
In the presentation, you will:
- Learn about the state of travel startup ecosystem, before and after the coronavirus outbreak
- Understand funding trends in response to COVID-19
- Get insight into raising capital during a crisis
- Know the outlook and optimism that investors have for recovery
- Discover sectors likely to fare well
- and more
Number of Travel Startups
Top Funded Verticals During the Last 5 Years
A picture of where the investor dollars have flowed into over the previous decade.
The vertical labeled as “Other” is quite substantially the top-funded Vertical, where almost $2B out of the $6.2B has been raised. This is mostly Corporate startups that operate pretty equally across multiple verticals, such as TripActions, TravelPerk, Lola and others that have raised a lot of money.
PhocusWire Pulse Survey
The data from this PhocusWire.com audience survey gives us a directional sense of how the industry feels about impact of the current crisis on their company’s finances. Nearly 75% are concerned the financial impact will become critical prior before the beginning of the 4th quarter, within a 6 month timeframe. The other quarter is looking more end of the year or into 2020.
