Travel tech

1. 1. Bundling

   → In a fragmented travel sector, customers often have no choice but to book different components of their journey from different providers.

   → To solve this, companies are increasingly bundling services together while charging a premium for an enhanced customer experience and a single point of support.

2. 2. Personalisation

   → Travel providers have traditionally relied on basic demographic categories to profile potential customers — but this approach is faltering in the face of increasing complexity in travellers’ motivations.

   → Startups have capitalised on this to fill the gap for personalised travel experiences, whether by using surveys, live chats or Instagram-like inspirational feeds to create bespoke agendas.

3. 3. Staying nimble

   → The pandemic has changed the way people travel, with domestic, rural locations winning out over far-flung city breaks, for example.

   → This has benefitted startups focusing on previously overlooked niches while pressuring others to adapt their focus — but companies need to keep in mind that, if travel conditions and consumer sentiments change yet again, so may their fortunes.

4. 4. Sustainability

   → With sustainability becoming increasingly important for travellers, it’s no wonder that later-stage startups have been making acquisitions in the carbon accounting and offsetting sectors.

   → Other startups are merging the two sectors by providing sustainability labelling services specifically for travel providers, or building platforms dedicated to “eco-friendly” destinations.

Who early stage startups are up against