Red River Insights - The Travel tech top10
Red River Insights - July 2024
Dear Friends,
It's that time again, the sun is out, the days are longer and meetings start or end with chats about holiday plan. Summer is heating up and, according to RAMP, so is the European travel tech industry!
Following the upheaval caused by the pandemic, the travel industry is making a strong comeback, with expectations to fully recover by the end of 2024 after suffering a 75% loss in 2020. A significant portion of this resurgence is attributed to "revenge travel," where individuals embark on international or long-postponed bucket list trips. Domestic travel is also on the rise and is projected to account for 70% of travel spending by 2030 (McKinsey) In the 1950s, the jet engine revolutionised travel by significantly reducing travel times. Today, advances in GenAI are similarly transforming the industry...
At Red River West, we have a strong love for Travel Tech having already invested in two iconic French companies Wordia and Collectionist so we really wanted to dig deeper on these trends and, as usual, leverage our powerful data platform RAMP to separate noise from signal.
What we found was quite surprising, we understood that GenAI was far from being the only trend at play here! (think sustainable and local travel, outdoor travel, dynamic pricing, group travel planning...)
Scroll down for our top10 of groundbreaking innovative Travel Tech startups (reminder: this is an algorithmic scoring, not a random human judgment!)
RAMP's Travel Tech Top10
We hope this sparks interesting conversations. If you have any comments or would like to suggest a startup that should be included, feel free to reach out to us. Abel, Chloé, Joseph and Olivier will be delighted to discuss these trends and rankings.
(Ranking established on 18/07/2024)
This ranking illustrates the dynamic and vibrant nature of the Travel Tech ecosystem.
We've highlighted 6 key trends illustrated by these companies:
Sustainable and Eco-Friendly Travel Accommodations
Sustainable travel is increasingly important to consumers, with 83% of global travellers stating eco-friendly accommodations and travelling is important to them (Booking). Raus provides remote getaways in tiny cabines, enabling travellers to enjoy eco-friendly escapes in nature. Because.eco helps the supply side by enabling hotels and travel agencies to get a better overview of sustainability data, using their ecosystem to create and report in multiple frameworks, showcase certifications on Online Travel Agencies (OTAs), and much more.
Transparent and Unbiased Travel Comparisons
Cozycozy is pioneering transparent travel comparisons with an impartial metasearch platform for vacation rentals and hotels. By aggregating listings from sources like Airbnb, Booking.com, and Expedia, Cozycozy ensures unbiased results, allowing travellers to make informed decisions without hidden biases and guaranteeing the best deals. This trend addresses the growing consumer demand for transparency in online travel bookings.
Enhancing Outdoor and Adventure Travel
Campanyon and Raus are catering to the trend of outdoor and adventure travel. Campanyon offers a platform for booking unique outdoor accommodations like campsites and glamping sites, while Raus provides remote tiny homes as explained above. The popularity of outdoor and adventure travel has surged, most reports underlining a 15% growth of the Adventure market every year. This trend reflects travellers' growing desire for unique, nature-based experiences and sustainable travel options.
Revolutionizing Corporate and Group Travel Management
Lanes & Planes, BizAway, and TroopTravel are transforming the management of corporate and group travel. Lanes & Planes integrates booking, expense management, and reporting, making corporate travel more efficient. BizAway simplifies travel management with centralised billing and compliance features, while Troop uses data analytics to optimise group travel planning. The corporate travel market is projected to reach $1.65 trillion by 2023, 1.3M US workers travel for business every single day! (Dream Big Travel)
AI-Driven Pricing and Revenue Management
RoomPriceGenie leverages AI-driven dynamic pricing algorithms to help hotels optimise pricing strategies in real-time. By analysing market demand and competition, RoomPriceGenie maximises hotel revenue while offering competitive prices to travellers. AI in revenue management is becoming increasingly vital, with the global AI in travel and hospitality market expected to reach 2.2B$ by 2025, highlighting the importance of sophisticated pricing strategies in the industry (Dream Big Travel).
Innovative Urban Living Solutions
Bob W is redefining urban living with tech-enabled, fully serviced apartments for short and medium-term stays. By focusing on digital nomads and business travelers, Bob W uses smart home technology and contactless services to provide a seamless living experience. The rise of remote work and digital nomadism has led to a significant increase in demand for flexible living solutions.
Hybrid work has also given rise to "workation," (Or "Tracanciers", the French expression used by Le Monde) individuals who showcase their work in public in holiday destinations. According to a 2022 Insee study, 35% of people planned to work remotely from vacation spots, highlighting the trend of integrating work into leisure environments.
A tailwind trend has made headlines recently in some places in Europe, the number of nomad arrivals in Lisbon for instance, is way down on its post-Covid peak and some remote workers and tourisms in Spain are being deterred by a feeling they aren’t welcome (Sifted covered this)
"The backlash this summer is an opportunity for local governments to root out the worst elements of tourism and digital nomadism and introduce policies that help bring long-term value to regions that need it. "
These trends highlight the dynamic and innovative nature of the travel tech industry, showcasing how technology is reshaping travel experiences, enhancing convenience, promoting sustainability, and meeting the evolving needs of modern travellers.
More on RAMP's scoring method
The ranking of these startups is based on the estimated momentum of the company but the algorithm does not assess the quality or reliability of the products/solutions developed by these companies!
Find out about the algorithm behind this ranking and the way scores are calculated here: Cheat sheet on RAMP
In case you missed them, our latest top 10s are here:
- June 24
- May 24
- April 24
- March 24
- February 24
- January 24
All the previous Top 10 are here.
Portfolio news
Ada Health's key team members were featured in recent podcasts this month: listen to Daniel, founder and CEO talk about Ada journey and Vanessa (COO) cover the fascinating AI and health topic
Bikini made it to space! The Exploration Company test capsule made it to space (although reentry wasn't tested because Ariane 6' upper stage faced an anomaly), the next capsule, Mission Possible, is on-track to fly in H1-2025 with SpaceX, we can't wait!
Resilience and Roche announced their partnership to improve the care and support of oncology patients treated subcutaneously.
Robovision and PackCheck announced their collaboration to enhance operational efficiencies and elevate product quality for food industry customers.
Jiko partners with Evergreen Money and support the launch of Liquid Treasuries product.
We wish you fabulous summer! Whether your plans include cheering on the Olympic Games, embarking on solo travel adventures, or continuing your remote work in new and inspiring locations (or at home) we hope you find joy and relaxation in whatever you do.
We look forward to seeing you back in September!
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