Travel startups are taking off
Travel companies, which are reliant upon a consumer’s tendency to spend excess cash, will be among the first sectors to be impacted by hostile economic conditions.
The second wave of Internet-era travel companies has captured the attention of venture capitalists.
In the last five years, travel companies have raised more than $1 billion in venture capital funding. That includes short-term rental startups, travel and tourism apps, marketplaces for “experiences” and other travel or hospitality tech platforms. Airbnb, a $38 billion company and an anomaly in the category, has raised $3 billion in that same time frame, according to PitchBook.
In the last few months alone, aspiring Concur-competitor TripActions and travel activities platform Klook entered the “unicorn” club with large venture rounds that valued both of the businesses at more than $1 billion. Meanwhile, luggage maker Away raised $50 million at a $400 million valuation, TourRadar nabbed $50 million and TravelPerk brought in $44 million. Plus, smaller startups in the space like Rocketrip, Freebird, IfOnly, KKDay, Duffel and RedDoorz all closed modest funding rounds.
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