Report Overview We are excited to present a limited edition e-book published by Skift Research, and it's only $50. It's a lighter read than our standard deep dives but packed with the same interesting stats, graphs, and actionable takeaways that you have come to expect from us.
A third wave of travel startups is building momentum in the marketplace. New travel businesses are on track raise more than $5 billion in venture capital worldwide this year, up from $1.6 billion in 2013.
The first era of web 1.0 startups brought travel online in the late-1990s and early-2000s. The second round of travel startups came in the early-2010s. Exemplified by Airbnb, these businesses were outsiders to the industry, looking to capitalize on stagnating innovation. Many focused on the sharing economy and new paths to distribution. In between these large waves were several smaller ripples. For instance, the dozens, if not hundreds, of startups hoping to be the “Facebook of travel;” most of these inevitably failed.
But now a new, third wave of travel startups is building and set to wash over the industry. These businesses are, broadly speaking, larger and more mature. They are more likely to partner with industry incumbents and many even take direct investments from corporate venture capital arms. This new generation includes unicorn startups, private companies valued at over $1 billion, across many travel subsectors such as tours & activities (Klook), hospitality (OYO Rooms), corporate travel (TripActions), and more.
Skift Research's new e-book identifies three large themes as well as their impacts for investors and stakeholders in the industry: 1) The Center of Gravity in Travel is Shifting Eastward, 2) Alternative Accommodations Move Beyond Airbnb, 3) Tours and Activities Come Online.