We are back with our weekly overview of the travel industry’s top news, innovations, trends, and startups. Here it goes:
Exclusive: Firsthand insights into a South Korean Unicorn. Earlier this month, we had the privilege of conducting an exclusive interview with Jong Yoon Kim, the visionary CEO driving the success of Yanolja Cloud. In this engaging conversation, he shared invaluable details about their transformation from an OTA to a pioneering super-app, overcoming hurdles to achieve unicorn status. We gained firsthand insights into their journey, exploring the complexities of balancing customer needs, investor interests, and stakeholder expectations. Moreover, we delved into how Yanolja effectively navigates the dynamic travel industry landscape while prioritizing the utmost importance of customer data privacy and security. We are providing FutureTravel subscribers firsthand with an exclusive peek into the world of one of the world’s fastest-growing travel tech companies, guided by the CEO Jong Yoon Kim himself.
Tour ops are going digital. Icelandic startup PaxFlow has secured $2.2 million in seed funding to revolutionize tour operator operations. PaxFlow provides tour operators with technology to automate processes and streamline behind-the-scenes booking management. The funding will support product development and international sales and marketing efforts. PaxFlow’s beta software has already been utilized by companies serving travelers from over 100 countries, with ongoing testing by hundreds of operators worldwide.
Non-obvious fashion & travel partnership.WeRoad, the European travel scale-up focusing on millennial travelers, announced its collaboration with Vans. As part of the agreement, WeRoad joins Vans’ experiential loyalty program offering members insider information, exclusive designs, members-only experiences, and the ability to redeem points. This partnership was sparked by Vans’ response to fans’ desire for more experiential benefits, leading them to team up with WeRoad for unique member-only experiences.
New opportunities for campers.Spot2Nite, an OTA catering to the campground industry, has closed a $3 million Series A funding round. With the funds, the startup plans to expand its core team and allocate additional resources to support existing and upcoming property management system integrations. Spot2Nite’s user-friendly platform connects campers to their perfect spots, providing travelers and campgrounds with a hassle-free booking experience.
Riding growth overseas. Berlin-based startup Rydes has raised €3.5 million in seed funding to expand its corporate mobility budget platform internationally. The investment will fuel Rydes’ growth outside of Germany, including the United States, while enhancing its all-in-one mobility solution. By replacing company cars with a monthly employee budget, Rydes enables seamless transportation options through its app. The platform integrates with HR, payroll, and tax systems, streamlining administrative processes and delivering cost and time savings for businesses.
Acquisition and German steps. Tech-powered short-term rental operator Bob W has entered the German market by acquiring Charly Hospitality. Bob W offers contactless, five-star service in locally-designed apartments across Europe. With the acquisition, Bob W adds seven properties in Germany and Amsterdam to its portfolio. The companies’ shared tech-enabled approach and design ethos facilitate seamless integration. Bob W aims to expand quickly, with Germany becoming its largest market by the end of 2023.
Boosting food tourism in Japan. Japan-based startup Tablecross has raised $2.24 million in Series A funding for its food tourism platform, ByFood.com. The platform assists English-speaking visitors in Japan with finding original food experiences, gourmet products, and making restaurant reservations. ByFood.com has witnessed remarkable growth in monthly gross merchandise value since Japan reopened its borders. With the new capital, Tablecross aims to improve its offerings and plans to invest in recruitment, marketing, and technological integrations. This funding positions Tablecross to strengthen its global food tourism market presence.
Get ready for an exclusive interview with Jong Yoon Kim, CEO of YanoljaCloud, as we take a deep dive into the world of Yanolja and Yanolja Cloud. Discover how they evolved from an OTA to a super-app, overcame challenges to achieve unicorn status, and balance customer needs with those of investors and stakeholders. We’ll also delve into how Yanolja is adapting to the changing travel industry and prioritizing customer data privacy and security. Join us for a behind-the-scenes chat at one of the world’s fastest-growing travel tech companies!
Can you describe the evolution of Yanolja from an OTA to a super-app. Has this impacted or changed your business strategy over time?
Yanolja is the world’s fastest growing global travel platform and travel tech company. It is a one-stop shop for the B2B2C value chain of travel and is leading the digital transformation of the global travel industry. Through its portfolio of market-leading travel super apps, including Yanolja, Interpark, Tripple, and DailyHotel, the company provides a full range of travel services including accommodation, leisure, and transportation.
Born out of Yanolja was Yanolja Cloud, our AI-based SaaS (software-as-a-service) business focused on the hospitality and leisure industries. It was created to fill a need we saw in the market for technological solutions for properties. Yanolja Cloud is helping businesses within accommodations, food and beverage, residences, golf and other leisure facilities undergo digital transformation by offering a full suite of solutions. This includes those for efficiently managing properties, distribution solutions for inventory sales and management, an IoT Hub that provides automation connecting all hardware, and AI services based on an integrated data lake of Yanolja Cloud.
The number of Yanolja Cloud’s global solution licenses has grown rapidly from 39,000 in 2019 to more than 80,000 today. With a presence in 170+ countries, in more than 60 languages, Yanolja Cloud enables businesses to adopt the solution that best meets their needs across its growing portfolio of companies, which includes Yanolja Cloud Korea, eZee Technosys and SanhaIT. Last year, Yanolja Cloud’s sales were up 225% from the previous year and its portion of Yanolja’s total sales rose to 18.11%.
While both Yanolja and Yanolja Cloud operate in the hospitality and leisure space, Yanolja Cloud has a different mission – a mission to create technology that makes it easier for hospitality and leisure properties to transform their business and delight their guests. That’s what I’m now focused on as the CEO of Yanolja Cloud, to help the company achieve that mission.
What has been the most influential change in the travel sector for Yanolja? And how have you adapted?
Like most companies in the travel sector, COVID was a once in a generational event and the most influential change for Yanolja. Yanolja performed strongly throughout COVID and is excited to see travel rebounding throughout the world. During COVID’s peak, we saw a demand spike for our b2b solutions business as properties looked to increase contactless services and cut costs.
COVID accelerated change in the industry at an incredible rate. Innovations that would have taken decades, happened in months. And now that the hospitality and leisure industries are forever changed, Yanolja Cloud is continuing to evolve its services to help properties everywhere transform through the digitization of their entire business including operations, products, services, and customer interactions.
Can you discuss any challenges you have faced in scaling your business to unicorn status, and how you have overcome them?
In order to become a unicorn company (corporate value of $1B or more), you must have the potential to grow into a decacorn company (enterprise value of $10B or more). That means it must lead future industry disruption to achieve sustainable growth. As Korea is a country with an annual travel & hospitality market size of 50 trillion won, which is the 5th largest in the world, Yanolja has enough room to grow for the time being with its OTA platform business specialized in the domestic travel market. However, the first challenge was that Yanolja had to grow into a top-tier global tech company in order to prove that being a unicorn was just the beginning and that it will be a sustainable company up to Hexacon (corporate value of more than $100B) in the future.
The second challenge is evolving into a forward-looking business model. As it is difficult to innovate and upgrade the market with the existing OTA business, Yanolja is no longer just an OTA, a business model that relies on intermediaries, but a global data platform that can directly connect customers and suppliers.
Adaptation to the rapid progress of digital technologies was the third challenge. Despite the rapid emergence of new AI and digital technologies such as Chat GPT, existing travel companies were more focused on business rather than R&D. Therefore, it was necessary to prove that Yanolja is a global tech company and to make an R&D-oriented company grow. Currently, we are developing an AI-based SaaS solution business in 170 countries around the world through Yanolja Cloud, which is becoming a leading company in its own right and delivering high-speed growth.
How does Yanolja approach customer data privacy and security, especially given the increasing importance of data protection regulations worldwide?
Yanolja takes customer data protection seriously and conducts customer data privacy and protection activities based on international standards. It also establishes and applies compliance standards in accordance with laws and regulations in each country to support its global business. In particular, Yanolja establishes and operates a separate and independent privacy zone infrastructure to process customer personal information to prevent external threats from occurring at the source and to provide a complete internal control environment. Yanolja’s information protection activities are validated once a year through the Information Security Management System (ISMS), which is certified by a national organization.
How do you balance your customers’ needs with those of your investors and stakeholders?
At the end of the day, all parties will be satisfied if we put the needs of customers first and innovate on their behalf. By listening to what customers need, and developing technology solutions that meet those needs, the customers will be happy and want to continue to use our products, which will in turn keep other stakeholders happy.
Can you describe the travel market in South Korea and how Yanolja fits into it? Are there some unique challenges and opportunities arising from operating a travel tech company in South Korea?
Digitalization is one of the most prominent changes brought about by the COVID-19 pandemic. Digital technology has become indispensable for delivering hyper-personalized services and differentiated experiences. Suddenly, “travel tech” has emerged as a driving force that will determine the success or failure of the travel market. Yanolja has built a vertical platform covering all areas of travel, including Yanolja, Interpark, Triple, and Daily Hotel, and has established itself as the number one travel platform in the Korean market. Yanolja is also expanding into the global SaaS solutions market via Yanolja Cloud with 80,000 licenses in more than 170 countries around the world, and growing.
Content is the key to competing in the travel tech market. It is important to note the growing demand for Korean content and culture including music, food and entertainment – which bolsters the potential of inbound travel products that utilize ‘K-culture’ as content.
The Korean government recently set a goal and vision to increase the size of the tourism industry to 180 trillion won by 2027 and attract 30 million foreign tourists to Korea. This is more than the KRW152 trillion in semiconductor exports last year, which means that the travel industry can become a strong foundation for the Korean economy, and new opportunities await Yanolja. In this vast market, Yanolja plans to lead the way with its B2B2C business capabilities.
How do you see the travel industry evolving in the next 5-10 years, and what role do you see Yanolja playing in that evolution?
First, the use of technology to increase operational efficiency, adapt to change and provide a better customer experience will move rapidly from a nice-to-have to a must-have. This will be true for smaller properties and properties in developing markets, which are often not top-of-mind when people think of the industry’s use of technology. Yanolja Cloud has a strong base of customers that are often overlooked by some of the bigger technology players and we hope to continue to bring our technology to properties that traditionally wouldn’t have access.
I also believe that personalization will become much more sophisticated. All companies have been trying to improve personalization for years but we are still at the early stages. Leveraging data will make properties more sophisticated in terms of what they can offer customers. For instance, right now booking a hotel room you usually can choose between room types. Now imagine a future where we know the customer prefers a room on a low floor, near the gym – and can offer them that level of specificity.
Finally, the focus on sustainability will only accelerate. Properties are going to be motivated to respond by implementing technologies that reduce waste not only because customers are demanding it – but because it’s also good for the bottom line. Yanolja Cloud is committed to sustainability efforts. For instance, one of our solutions provides smart technology that remotely controls room environments to minimize unnecessary energy wastage, and reduces electricity and carbon emissions. We’ll continue to prioritize sustainability across our Yanolja Cloud Member companies so that the environmental benefits can be passed onto properties around the world.
How does Yanolja plan to stay competitive and innovative in a rapidly evolving industry?
Yanolja Cloud is made up of member companies from around the world, all with a different history and expertise. This gives us access to an incredible amount of data, technology and talent. Different travel markets evolve at different rates and being a global company allows us to bring technology from one company or region to another.
For instance, for some time we’ve been offering automated check-in Kiosk technology in South Korea in response to South Korea’s aging population which is making it harder to find frontdesk workers. Only recently have other markets such as the United States encountered similar labor challenges and we plan to adopt and offer a check-in kiosk solution in the US market. Had we waited for that trend to reach the US before developing a solution – we would only now be developing this technology. Having a global perspective gives us an advantage and the ability to think globally and act locally.
What advice would you give to other entrepreneurs looking to start a travel tech company?
I would like to give three pieces of advice to the entrepreneurs of travel-tech companies. The first is to recognize the fact that, despite economic crises, wars and epidemics, the tourism market has doubled every 15 years over the past 50 years so I believe in the sustainable growth potential of the travel and hospitality market.
The second is that external management conditions such as the macro environment are difficult to predict and always fluctuate, but, regardless of this, technological innovation and disruption changes in one direction. I would like to believe that the changes in digital technology, such as the data-based AI like Chat GPT or the Metaverse and decentralization like blockchain or IoT, will only continue to accelerate in the future.
Lastly, doing business and starting a business in an era of high uncertainty involves many risks, so entrepreneurs will have greater concerns. However, from the standpoint of a person working at a startup, it means that the size of success in times of high volatility is rather greater than that of those who seek stability. Thus, I hope that all the entrepreneurs will see the current difficult business conditions not as a deterrent, but as a greater opportunity to overcome difficulties together and succeed.
How do you balance your customers’ needs across different geographies and travel preferences within a single super app?
Travel used to be a supplier-centered market, but travel in this ‘new normal’ era is changing to become customer-centered. Travel restrictions due to the pandemic have made travelers more cautious and want to add more value to their trips. As personal circumstances and environmental changes diversify, it is becoming more important for travel companies to proactively respond to the increasingly diverse customer needs.
In line with these trends, Yanolja is continuously developing its platform based on a customer-first strategy. First, in terms of service, Yanolja provides all travel-related services as a super app. The company not only provides a variety of services, but also launches new specialized categories centered on core services that customers need and offers various information in a timely manner so they can prepare their entire trips with Yanolja, and enjoy the experience.
As there is a wide range of information and services, the key is to make the platform more intuitive and convenient. So, Yanolja develops the optimal UI and UX, exposes the final price during search and reservation, and quickly introduces various simple payment systems to ensure that all processes within the Yanolja application are seamlessly connected.
Yanolja is changing the paradigm of the travel industry by establishing an environment where everyone can travel comfortably through customer-oriented services and advanced usability.
How do Yanolja approaches localization and cultural differences when expanding into new markets? What differences have you seen over time across geographies?
The global nature of the Yanolja Cloud business is one of our biggest strengths. Not because we can offer one product everywhere but because we have an array of products from around the world to meet local needs. Through a lineup of solutions built on industry expertise, the company provides solution products tailored to each customer’s specific environment, such as regional characteristics and scale of the property, and has rapidly increased market share in emerging tourism markets such as Africa and Asia. For instance, through Yanolja Cloud we offer Property Management Software (PMS) for hotels. While many of the core components of a PMS are the same, the solution can be customized to best serve the market and property they’re in. For instance, nuances like languages, currencies, integration with local distribution systems, payment preferences and adherence to local data and security standards all need to be considered to be a leading player. At the end of the day, technology should not replace but instead enhance the personal and human experience which makes travel so memorable.You can learn more about this, and other aspects of our business at yanoljacloud.com.
What are your plans for future growth and expansion, and how do you plan to achieve them?
Yanolja Cloud will play a key role in Yanolja’s global growth and expansion as we strive to lead the digital transformation of hospitality and leisure properties everywhere. That means properties of all types, sizes, and budget ranges – and in every corner of the world – so that everyone can undergo digital transformation and delight their guests.
To achieve that, if our teams around the world can build technology to meet the needs of our customers, we will build it. If meeting the needs of our customers can be better achieved by acquiring or partnering with a company to fill a gap in a market or segment – then we’ll seriously consider that, too.
Last year, we invested in Innkey Infosystems, a premium hotel solution company in India. Earlier this year, I joined President Seok-Yeol Yoon on a tour of the United Arab Emirates (UAE) and signed strategic business agreements with ‘Al Rais Travel Group’ and ‘Wego Group’. And we’re just getting started.
Let’s dive into our weekly curation of the travel industry’s top news, innovations, trends, and startups:
Smooth security at the airport.Passengers flying from Rome’s Fiumicino Airport can now enjoy a smoother security process, thanks to introduction of a new tech system. Using computed tomography (CT) technology means passengers can leave electronics and liquids in bags, improving security effectiveness and waiting times. High-resolution volumetric 3D images enable quicker and deeper baggage assessment, automatic explosives detection and low false-alarm rates. The airport will continue introducing the machines throughout this year, aiming to improve operational processes and passenger experience.
New paradise destination for startups?Malta has launched an exciting new program to attract non-EU entrepreneurs to its shores and become part of its thriving startup ecosystem. The Malta Startup Residence Program offers a 3-year residence permit to founders, co-founders, core employees, and their immediate family members, with the potential for renewal. With a minimum investment of €25,000, beneficiaries will have access to Malta’s rich history, beautiful climate, and world-class healthcare and education systems. Malta’s diverse economic landscape, talented workforce, and concentration of industry players make it the perfect place for startups to launch, grow and scale their businesses. The program reflects Malta’s commitment to innovation and entrepreneurship and will undoubtedly strengthen its position as a leading destination for European startups.
Yanolja bold expansion strategy. South Korean company Yanolja Cloud has acquired Oregon-based Innsoft, a hospitality solutions firm, to target North America’s market. Yanolja aims to expand the adoption rate of SaaS-based hospitality solutions in the region, where the transition to digital operations has been slow. Yanolja also plans to introduce self-check-in kiosks to hotels near highways to improve front desk operational efficiency. The company previously invested in HotelOnline, which helps African and Middle Eastern properties transact online.
Where to go and what to do. The UK-based platform for booking attractions and experiences, Lovetovisit.com has raised $2.9 million to expand its domestic travel market. The funding will be used to launch the platform in the United Arab Emirates and the US by the end of 2023. Lovetovisit.com already has the largest bookable inventory of “things to do” in the UK and plans to increase its monthly user base to 10 million by the end of the year. The company aims to boost the domestic travel market and increase bookings across the industry.
How is Google shaping travel? This is an exclusive peek into Google’s vision for the future of travel as Susie Vowinkel (Managing Director of Global Travel) sits down with Dr. Javier Gonzalez-Soria (TravelThink) for an in-depth interview. Discover how Google invests in the travel industry and the innovative products and tools they are developing to help travelers and travel companies enhance their experiences. A great chat with one of the leading tech companies shaping travel trends.
Everyone is flying to Europe. President Biden’s recent trip to Northern Ireland highlights two travel industry trends. Firstly, the rise of “bleisure” trips, where travelers combine business with leisure activities, has increased during the pandemic. Secondly, the surge in Americans planning to travel to Europe this summer, with searches for European travel up 77% from last year. This has created a gold rush opportunity for airlines, with companies like JetBlue and United increasing their capacity to meet demand. The US’ biggest airlines derive a significant portion of their passenger revenue from transatlantic travel.
Nature-focused partnership to boost young visitors. Travel and experiences platform Klook has partnered with a wildlife reserve in Singapore, the Mandai Wildlife Reserve, to boost international visitors. Together, they will create marketing campaigns targeting millennials and Gen Z travelers in six key markets in the Asia-Pacific region. This partnership will curate bundles and activities to position the precinct of the Mandai Wildlife Reserve as a top-of-mind destination in Singapore. The partnership aims to promote eco-conscious travel choices and raise awareness of wildlife conservation efforts. The first campaign will kick off with events, including Singapore Zoo’s 50th anniversary.
Getting airport rydes around the globe. Japan-based SmartRyde, a marketplace for pre-booked airport transfers, has raised $3.4 million in Series A+ funding. The startup has created an API that allows online travel agencies and airlines to offer pre-booked airport transfers in their booking flows easily. SmartRyde aims to be a “global distribution system” for airport transfers, streamlining inventory management for the taxi and limousine industry. With partnerships with over 700 airport transportation providers in 150+ countries, the company’s services are currently available on 40 different OTAs.
Here is your weekly curated list of happenings in the hospitality/travel sector:
Meet the city that’s leaving cars behind. A capital city recently announced its plans to build 350 km bike lanes by 2025 to promote sustainable transportation. With a well-established public transportation system in place, these bike lanes are expected to further reduce congestion and improve air quality in the city. But the benefits of smart transport solutions go beyond that – they can also positively impact tourism.
A scanning tunnel for rental cars. After the significant increase in passenger numbers in 2022 (total of 31.6 million), Munich Airport has teamed up to streamline car rentals by implementing a scanning tunnel from a leading AI-based automotive solutions provider. The new technology, implemented in collaboration with Assured Europe and Wenn AS, documents a rental car’s condition as it passes through the tunnel, detecting damage in seconds. Customers drive their rental cars through a structure at the entrance and exit of the parking garage, and cameras capture the car from various angles, with data automatically evaluated by AI. Munich Airport is the first in Europe to use the technology, and implementation at other airports is being planned.
Rising Chinese tourism sector. If you’re curious about what to expect from the reopening of China and how to prepare for this, then this PhocusWire article is for you. They summed up some key takeaways from the China Arising event. In partnership, WebinTravel, Travel Daily China, and Accor, discussed the latest insights and trends in the Chinese travel market so that business can adapt their strategies to engage the emerging Chinese traveler.
Travel Insurance Expansion. Insurtech Koala has secured €2 million in funding to expand its European operations and develop further travel protection products. The B2B2C startup has developed products such as cancellation insurance for any reason and trip disruption coverage for delays, cancellations and missed connections. The French company says its data-driven approach has been key to its success so far and aims to cover 500,000 travelers in 2023. Funding will go toward growing European operations and developing further travel protection products.
Audio content for destinations and airlines.Autio, the location-based audio entertainment app co-founded by Kevin Costner, has announced a raise of $5.9 million in funding. The new round will be used to expand across the US, grow the team, and support additional product functionality. Using GPS, the startup offers over 10,000 two- to four-minute stories about nearby landmarks and towns to “paint a picture you’re unlikely to get from a history book or visitor’s guide”. In addition, this funding announcement follows its recent partnership with JetBlue, which allows the airline’s passengers to access audio content for selected destinations. This marks Autio’s first in-flight integration and further expands its reach to new audiences.
Coming next in Shanghai. Shanghai will invest $15.7 billion in 28 culture and tourism projects to boost tourism in the Asia-Pacific region, which includes an indoor ski resort and memorial halls. The ambitious goal is to make Shanghai a world-renowned tourist city by increasing confidence, expanding consumption, grasping investment, and stabilizing growth, said the Shanghai Municipal Administration of Culture and Tourism director. Coming next in Shanghai: an indoor ski resort and a passenger cableway across the Huangpu River.
Growth boost for Nigerian mobility. Shared mobility company, Shuttlers, has raised $4 million in funding, with the investment going towards route expansion and technology development. The Nigerian company, which offers public transport and corporate mobility solutions, has also partnered to access hundreds more buses as it grows its 300 routes.
It brings me so much joy to share a special edition of our newsletter with you today, celebrating the 100th edition of FutureTravel! Thank you for your continued support and readership – it means a lot!
As I look back at the journey since the first edition during the pandemic, I’m amazed by the rapid pace of change in the travel industry. With new technologies and innovative ideas emerging everywhere, there’s never been a more exciting time to be in this industry.
I love curating the content of this newsletter every week and have been so inspired by the visionary leaders who are driving innovation in the travel industry. To all those who have dared to think outside the box and pave the way for positive change: thank you. Your decisions make my job a great pleasure and make the content of the FutureTravel newsletter such a treat for our audience. Without innovation, we wouldn’t have content. It’s an honor to share your stories with the world and shine a spotlight on those who are shaping the industry.
I’m especially proud of the two events we hosted since launching FutureTravel. Bringing together some of the brightest minds in the industry, our events have provided a platform for sharing ideas and making valuable connections. It’s been an honor to welcome amazing speakers and a top-notch audience. I have enjoyed seeing our community grow, and I’m committed to hosting events that provide value and foster innovation in the travel industry.
As we move forward, the mission stays the same: to continue giving a voice to those who are shaping the industry forward. I cannot wait to see what the future holds and I’m excited to continue sharing it with you every week. I’m so grateful for the growing community we’ve built – from just 23 subscribers to over 21 thousand readers every week!
Thank you again for being part of the FutureTravel community. I can’t wait to continue this journey together.
Israel’s capital is one of the cities that faces the worst traffic car jams in the world and is now actively working to improve its transportation system, including expanding its public transportation network and encouraging the use of alternative modes of transportation, such as bikes and electric scooters.
Meet Tel Aviv, the city that is prioritizing alternative means of transport to solve an urbanism and infrastructure problem, betting on more sustainable and democratic solutions.
A congested city creating sustainable solutions through technology
In 1948, when Israel declared independence, Tel Aviv became one of its major cities and it’s considered a thriving center of commerce, culture, and technology. Known for its Mediterranean beaches, rich history, and innovative spirit, Israel attracts millions of visitors every year and as their biggest city, so does Tel Aviv — Israel had 4.5 million tourist entries in 2019, the largest number ever.
The 52-square-kilometer city is, currently, the 16th most congested city in the world, according to the 2021 Tomtom traffic index, what makes residents and tourists face big challenges to get around.
Many complain about traffic, congestion and the absence of a subway; also, as Tel Aviv’s government mentions, there are complaints about the ‘disappearance’ of the buses on Saturday (the Jewish day of rest).
What could Tel Aviv do? They decides to put the city on the map for combining technology initiatives for creating effective solutions on a recurring problem to residents and visitors, betting on more sustainable transports for its present and future — today, two-wheel electric vehicles substitute almost a million car or taxi rides monthly, according to Tel Aviv’s City Hall.
Tel Aviv is a real startup hub. We have about 1000 startups and for a tiny city of just 52 square kilometres, that is a lot. It is the Middle Eastern version of the Silicon Valley, so we tend to call it the “Silicon Wadi”. Many of these startups belong to the travel tech segment.
The popularity of electric scooters and bikes in big cities has grown in recent years, and they are now widely used as a convenient and environmentally friendly mode of transportation. Being a technology and startup hub itself, Tel Aviv’’ residents profile shifted and, along with it, became more common to see people going around, getting to work or doing groceries accompanied by an electric scooter or bike, rented or not.
To get a little bit deeper about environmental impact that “going electrical” may cause regarding carbon print emissions and so on, Bloomberg’s article mentions data from Bird Global Inc., the first e-scooter rental company in the city: “in the past three years its riders alone have cut city emissions by an estimated 1,283 tons — about the same amount of carbon dioxide it said is sequestered annually by 55,000 trees.”
Micro mobility solutions and its impact on the travel industry
When we talk about tourism and the travel industry, it overlaps a lot with mobility and transportation topics, but sometimes it is not so clear how.
Creating a more clear argument regarding the travel industry, if there is no transport there is no travel. We must consider how people move within cities as well as from one city, continent, country or state to another.
Micro mobility solutions have a clear impact in that way, transforming the city’s atmosphere and functioning, as behavioral changes do. Tel Aviv’s decision to invest on micro mobility will change how people travel there because it changes the perception and creates desire towards this innovation.
The broader use of scooters and bikes may lead to some challenges, of course. In case of few bikes and lanes and proper space to navigate, they may cause crowded sidewalks, safety concerns, decreased public space and accessibility for those with disabilities, for example.
Though, in order to address the harms and issues, the city can take Tel Aviv’s example, implementing regulations to manage the use of scooters and promote safe and responsible use. Tel Aviv’s approach on prioritizing space for two-wheel electric vehicles is impactful and wise, being an inspiration for travel tech companies joining efforts on popular destinations, creating better — and perhaps even more fun — experiences for visitors.
Crowded and popular travel destinations may address it as a solution that is eco-friendly, wise, young and popular.
And additionally, they are an increased convenience for travelers and people without personal vehicles — this action may even increase tourism revenue and economic activity locally. Regarding the environmental side, the air quality improves, the carbon footprint is reduced, traffic congestion shrink… Sounds like a good idea.
The good and the bad: is going e-scooter a good option for tourists?
Besides being a fun way of moving around in the city, which is in fact a very important argument to a large public, driving a two-wheel vehicle around the city might impact on shaping a new type of traveler.
People will get the chance to get to know the place so much better, and by choice. Imagine that instead of hopping from train to metro to buses, tourists may check the itinerary on Google Maps and basically make their own route to their destination. Choosing how they will move through the city, if they take longer or not, if they stop at some interesting restaurant or browse at an interesting bookshop, will likely create so many more possibilities for their own travel experience. It appears to be a more organic way of visiting a city and exploring its little hidden corners, nurturing a special bond with that place.
If you take Amsterdam’s example, a city known for the broad bike use by locals, when tourists rent bikes to move through the city they get that amazing taste of how it feels to be local. You have the chance to fall in love with the brick houses, feel the wind while you go through beautiful canals and finding out that a raincoat is the perfect outfit for the city. Not stopping there, they need to also understand the local rules, how people act with each other, what matters to them, what you can’t and can do — and, of course, relate it to your own personal experience comparing it to the place you live. That is the kind of thing that people talk about when they tell a story.
Are you looking for a quick update on what’s new in the travel industry? We’ve got you covered – check out the most noteworthy trends, startups, and innovations we’ve compiled this week:
Travel marketplaces you should know. World-known VC firm a16z has just launched the 2023 Marketplace 100, which ranks the largest consumer-facing marketplace startups and private companies based on their annual gross merchandise volume. This year’s list features nearly three dozen newcomers, including marketplaces for refurbished electronics, precious metals, and sustainably raised meat. Interestingly, 13 of the 100 marketplaces ranked are related to travel, which reflects the industry’s ongoing recovery and the pent-up demand for leisure travel. While there is a strong focus on US-based companies, the list also features some marketplaces from other parts of the world. The Marketplace 100 highlights rising marketplaces that will define the category in the coming years.
Open platform gets the spotlight. San Francisco-based fintech Brex has launched a new travel booking service on its Empower platform. Developed in partnership with Spotnana, the cloud-based platform offers an all-in-one travel and expense solution in addition to Brex’s existing corporate card and expense capabilities. The service includes access to a range of unbiased inventory, such as global distribution systems and low-cost carriers, with the ability to book and change travel, receive agent support, and budget spending. Brex aims to transition its corporate banking customers to become travel customers and claims to offer better visibility of travel costs and policy management than traditional agencies.
Influencing travel marketing everywhere. Travel platform Steller has acquired Travel Mindset, an influencer marketing company focused on the travel sector. Influencer marketing is expected to be a $21.1 billion industry this year, and as many as 84% of US adults use influencers as resources for travel recommendations. Travel Mindset connects influencers and brands in the travel space and offers services ranging from editorial, video and social media to event and campaign management. The acquisition will help Steller deepen its value to brand and travel partners, content creators, and travelers.
Automating check-ins and check-outs. Canadian startup Operto Guest Technologies has raised $25 million in a Series B round. Operto provides automation tools for hotels and rentals to create a seamless, automated check-in and check-out experience for guests. The funding will be used to accelerate the company’s expansion and enhance guest experiences and operational efficiencies for property owners and hosts. Operto recently acquired STAYMyway to roll out digital key partnerships, and HotelTonight founder Sam Shank has joined its board of directors.
Funding boost for airline distribution tech. Singapore-based company Mystifly has raised $8 million in pre-Series B funding. The airline distribution technology company offers a platform for airlines and travel intermediaries that facilitates access to airfares, distribution, payment reconciliation and settlement. The latest funding will go towards developing Mystifly’s data and technology capabilities and hiring in data and engineering. Mystifly’s Azygos platform, a multi-source airline retailing solution, has recently been enhanced to combine global distribution systems bookings with new distribution capability bookings.
Mixing spaces together. Placemakr, a flexible-use multifamily and hospitality operator, has raised $65 million in new funding, bringing its total capital raised to over $350 million. Placemakr will use the funding to expand its property acquisitions and partnerships throughout the US to meet the consumer demand for apartment-style hotels, short-term rentals, and flexible-living accommodations. Placemakr’s tech-enabled platform allows multifamily developers and owners to transform existing properties into commingled spaces, effectively combining multifamily and hospitality uses in one building.
We’ve compiled the week’s most noteworthy news on travel industry trends, innovations, and startups. Here’s what we’ve gathered:
Holograms at the front desk.CIC Hospitality is set to launch 30 boutique hotels in Scandinavia, each equipped with a unique feature: hologram receptionists at the front desk. Upon arrival, guests will be greeted by a pre-recorded hologram video and will have access to several options on the display, including pre-recorded hotel information. If the guest needs help from a live representative, they can indicate it on the touchscreen and a customer service worker can connect remotely and appear as a hologram within the box. While some may view holograms as a mere gimmick, this move reflects CIC Hospitality’s strategy of increasing efficiency while preserving a personalized touch – an issue the industry has been tackling for years. The plan is to install these boxes in eight Aiden hotels this year.
Grand Prix Experience in land and sea. Through a partnership between Formula 1 and MSC Cruises, fans of the sport can enjoy a one-of-a-kind experience. Guests can purchase packages on the cruise ship, which include access to the Abu Dhabi Grand Prix in November. The packages offer a premium all-inclusive experience with exclusive track activities, such as a pit lane walk, a guided track tour, and F1-themed activities for both adults and children. The ship, MSC Virtuosa, docked at Abu Dhabi’s cruise terminal during the event, will serve as a floating hotel for guests.
Tryp.com raises funds for expansion. Danish startup Tryp.com has raised “more than half a million euros” in a seed funding round. The travel-planning platform uses a search engine that selects from over 6,000 destinations to access thousands of real-time flights, trains, buses, and hotels to build the best possible trip. The funding will be used to grow the team, enhance its technology, and expand its reach. With a valuation of €8.3 million, Tryp.com has attracted over one million users in the last 12 months.
Holiday home, but make it Danish. One of the many characteristics of Danish culture is its stunning design and architecture. From furniture to buildings, Danish design has captivated people worldwide – and this is exactly what you can expect from Landfolk. The Danish startup has just raised €3.8 million to expand its platform, which connects holiday home enthusiasts with handpicked nature retreats in Denmark, Norway, and Germany. Their selection includes beautiful and unique summer houses, showcasing exquisite design and architecture. With Landfolk’s latest investment, more people can discover and experience these holiday homes while enjoying a relaxing holiday in one of their handpicked retreats.
Traveling without limitations. San Francisco-based Wheel the World makes it easier to book accessible travel for people with disabilities, seniors, and their families. The startup has now closed a $6 million pre-Series A funding round., which will let them expand listings and partnerships with DMOs. Wheel the World also introduced two new commitments: guaranteeing that every hotel room booked on the platform will be accessible and matching the prices of other travel booking sites. Founded in 2018, the startup now plans to reach 12,000 travelers booking through its platform by December 2024.
New partnership, new travel choices. Juniper Travel Technology has partnered with Kiwi.com to broaden its network and provide its platform partners with a greater variety of options. Through Kiwi.com’s virtual interlining algorithm, Juniper Travel Technology clients can access more carriers and build unique travel itineraries for their customers. With more than 95% of worldwide flight content coverage, the alliance will allow Juniper Travel Technology’s clients to enhance their offerings and expand the range of travel opportunities available.
Ready to catch up on the latest travel industry news? Here are the top stories from this week:
Making it easier for hotels to get paid.RoomRaccoon, a hotel management system, has teamed up with Adyen, a global fintech platform, to improve its payment capabilities, making it easier, cheaper, and more secure for hotels to get paid. They’re automating the payment process through RoomRaccoon’s booking engine, channel manager, and front desk, which means real-time tracking and less chance of fraud. This partnership will also expand RoomRaccoon’s payment offering in 28 markets, including new destinations in Europe and North America, and provide hotels with a range of established payment methods that their guests trust.
Ready to master travel booking. Paris-based Travelsoft has a target to transact bookings worth €5 billion annually and has just added a third brand to its portfolio. Travel booking platforms are in high demand, helping the tourism industry stay efficient in the digital era where personalisation and automation are key in travel. Travelsoft’s platform helps players in the industry sell packages by automating production and booking and handling data oversight. The company has now bought Travel Compositor to secure its position in Southern Europe and LATAM, which adds to its purchase of Traffics and Orchestra in 2022.
Home swapping is about to get popular. It’s reminiscent of a pretty familiar rom-com movie, but it seems that home swapping is a growing market. It offers people the chance to enjoy personal accommodation affordably, giving access to what may otherwise be an unaffordable luxury. Home swapping specialist HomeExchange has just acquired its competitor Love Home Swap to prepare for a market boom in 2023. Home exchanges are already up 75% compared to 2022 – seems like it’ll be an exciting segment to watch.
Better digital experiences for guests and staff. Munich-based startup Apaleo just raised a whopping €9 million in a growth equity round. They will use that cash to expand their hospitality platform for hotel and serviced apartment chains across Europe. Apaleo’s software helps hotels and serviced apartments create cool digital experiences for guests while making things easier for staff. Their solution currently powers brands across 15 countries and their customers include numa, Soho House, Limehome, SV Group, and Lindemann Hotels.
TUI looks for growth with a new tour platform.TUI has been working hard to maintain growth over recent years, looking for new ways to attract customers by extending product offerings. Its launched things like dynamic packaging, personalised deals and experiences, and now, it’s tapping into the growing tours segment with TUI Tours. The tour market is valued at $100 billion but is still pretty fragmented and offline. TUI aims to bring it online by working with startup Nezasa to build a tour booking platform that allows for full personalisation.
What’s left of the World Cup?Qatar is using the attention it gained from hosting the 2022 FIFA World Cup to diversify its economy by focusing on the tourism and sports tech sectors. The country aims to attract six million visitors annually by 2030 and increase the tourism sector’s contribution to its GDP from 7% to 12%. With a 64.4% increase in visitors arriving in January 2023 compared to the same period in 2022, the country is easing visa restrictions and investing in marketing campaigns to promote itself as a premium destination. Qatar’s $450 billion sovereign wealth fund is considering football, finance, and technology investments.
Hoteliers can keep an eye on the competition. The short-term rental market has been soaring over recent years, giving hoteliers a new competitor to take on. OTA Insight, based in London, helps hotels track their competitors’ rates and gives insights into the short-term rental market. The company has launched a new product, Rate Insight+, which will factor in the prices of rentals compared to hotels so they can stay as competitive as possible and access more market data. Let the price battle commence!
Are you ready for the latest and greatest from the travel industry? Here are the top news stories:
Making women’s group travel a top focus. Women travelers are getting a premium marketplace as El Camino Travel switches focus on becoming an experiential marketplace for women travelers. The group travel startup raised $1.1 million in pre-seed funding to develop its technology and boost awareness of its brand as a “premium marketplace for women travellers that connects them directly to exceptional experiences. The company offers small group trips to destinations such as Morocco, Guatemala, Egypt, Greece, with an average order value of $3,400. The firm also partners with destination management companies and offers a membership program called El Camino Clubhouse, offering travel recommendations and guides.
Need a break from a noisy and hectic environment? The nature-focused hospitality group Unyoked which offers immersive off-grid experiences has secured €18 million in a new funding round. After establishing a strong presence (and always booked cabins!) in Australia and New Zealand, the funding will be used to expand its solar-powered cabins across Europe and the UK. Unyoked offers fully off-grid hideaways that are carefully hand-picked and equipped with solar power, rainwater tanks, wood fires, and composting toilets.
Meet the city charging a tourist entrance fee. In the second post of our “Meet the City” content series, we talk about Venice: the Italian city known for its canals, gondolas, and art, is pioneering a controversial initiative to combat the impacts of excessive tourism. The city plans to charge a €10 tourist fee for daily visitors, which raises questions about the future of travel and tourism. Despite being a vital part of the local economy, the city’s exploitation is not an option anymore. With the clear message of making tourism more sustainable, Venice is taking a position to create a more sustainable tourism ecosystem, inspiring other cities to follow its example.
An accelerator focusing on impact.Travel Impact Lab has launched the world’s first accelerator program for travel startups that are all about impact. The program aims to empower and support founders in the travel and impact industry to develop solutions for customers to make sustainable choices of where, when, how, and why they travel. It’s a 5-month hybrid program that will start in May 2023 and will give founders a chance to learn how to measure the impact of their activities, receive expert coaching and mentoring sessions, and access to strategic partners and investors. Travel startups will work together during the program, and each startup will receive a €100,000 investment in the company in exchange for an 8% equity stake. Applications are now open!
Joining forces in the same app.A shared booking platform between Greyhound and FlixBus has been introduced by their parent company. This will allow travelers to book rides to almost 2,300 destinations throughout North America from the websites or apps of either company. Customers can expect new features like reserved seating for a small fee and new payment methods.
Smart vehicles for a better airport experience. As part of Schiphol’s goal to make traveling as easy as possible for everyone, Amsterdam Airport Schiphol is partnering with Axxicom Airport Caddy. The airport is testing smart vehicles from personal transportation company WHILL to help travelers with reduced mobility find their way independently and safely around the airport.This includes elderly travelers, people who can’t walk long distances, and anyone who worries they might get lost. passengers can enter their destination, and the vehicle will drive them there – and then back again.
Billionaire French deal, oui.European Camping Group, the owner of Eurocamp, has tripled its campsite portfolio by acquiring French Vacanceselect Group for €1 billion. The acquisition will add five-star resorts across France, Italy, Spain, Croatia, and The Netherlands to Eurocamp’s portfolio of destinations. The move aims to capitalize on the growing demand for high-end holiday experiences and will allow the group to offer more resorts with premium mobile homes, water parks, activities, and entertainment. The expanded group is targeting a turnover of €700m this year.
Have you ever imagined paying a €10 ticket to visit a city?
It is Venice’s plan to charge a €10 tourist fee for daily visitors as a way to combat the impacts of excessive tourism, becoming a pioneering and controversial initiative by a city that is now debating the future of tourism and travel.
The Italian city of Venice is known for its canals, gondolas, architecture and art, as well as being host to the famous Venice Film Festival. The UNESCO World Heritage Site, Venice is an extremely popular destination that receives millions of tourists from all over the globe annually, which makes the travel and tourism industry of paramount importance to the local economy.
So why create a tourist tax if they are a vital part of the local economy?
With the low demand of tourists due to the pandemic, the canals of Venice started to breathe
There is a larger and very interesting context of what happened in Venice in recent years, and triggered the creation of this measure.
The COVID pandemic affected tourism, we all know. But what many travelers don’t know is how much cities’ infrastructures are impacted by tourism.
In Venice, what happened between 2020 and 2021 was astounding: when the traffic became much lower than usual, the canals started to become cleaner, with clearer and less polluted waters — because, obviously, the means of locomotion for people are walking, biking and gondolas.
The first city to charge a fee for tourists
Venice has been discussing ways to control, rethink and distribute tourism for many years due to the “over tourism” situation it faces. Today, with 50,000 residents, but thousands of tourists visiting the city daily — during the 2022’s Easter holiday there were 125,000 daily visitors —, the choice was to apply a fee for one-day visitors, with exceptions for people who stay overnight, visit relatives, among other reasons.
“Manage tourist flows” was Venice’s goal with this initiative. Putting itself as a protagonist, Venice is innovating on managing tourist flows and working towards more sustainable travel and tourism, with the clear message: the exploitation of the city is not an option anymore. Even though there is a desire to increase tourism and move the tourism sector forward, how to make it more sustainable is an urgent agenda across the whole industry — after all, in 2019 Venice generated tourism revenue of 1.5 billion euros ($1.8 billion) being with 30% from day trippers.
How overtourism impacts cities and destinations
This makes us think of Venice, but also of Paris, Barcelona, New York, among so many other cities in the world that deal with the normality of intense tourism in their daily lives.
Although over tourism can cause damages, there are ways of being optimistic towards the future while making tourism better. The conclusion here is: we can take lemons and turn them into lemonade.
Venice is taking a position to create a more sustainable tourism ecosystem, inspiring other cities to follow its example. Charging a tourist fee can be a first step towards educating and making the public aware of the topic, and paving the way for a new way of traveling.
Looking towards the future, the travel industry may address it by offering longer experiences in the city with customized itineraries, engaging local restaurants and cafes, hotels and accommodations with discounts for long stays, tax incentives for establishments, transport, and tourists themselves.
Here are some of the most exciting travel innovation stories right now:
Airport management revolution. AeroCloud just raised a massive $12.6 million in Series A funding to bring their AI and machine learning airport management platform to new heights. With lightning-fast passenger processing, improved self-service options, and better stakeholder communication, AeroCloud is flying high above the competition. It’s no wonder they’re quickly becoming the go-to solution for airport efficiency, customer satisfaction, and juicy operating margins.
Electric bus network for Indian cities.Ixigo, the Indian online travel app, is investing $3.1 million in FreshBus, an electric bus startup. FreshBus is set to launch an inter-city electric bus service across India with 24 e-buses, expanding to 1,000 over the next couple of years. This move is a huge win for the environment and all parts involved!
Rise of robotic automation in hospitality. They’re already the number 1 robot manufacturer in the industry, with exports to over 60 countries and shipments of over 53,000 robots in 2022. With major hotel brands like Marriott and Hilton on board, Pudu is also taking over the service industry. With labor shortages causing all kinds of headaches, businesses are turning to Pudu’s solutions to automate their workflows and lighten the load. Pudu scored $15 million in fresh funding to expand its production capacity and develop commercial cleaning robots. Seems like hotels will see more robots around their halls.
Strategic acquisition targets nomadic workers.Blueground, the globetrotter’s favorite furnished rental company, is joining forces with Travelers Haven, the on-demand rental service for nomadic workers in 20,000 US cities. This acquisition, whose details are being kept under wraps, is set to make the combined organization a major player with over 1,200 employees and projected revenue of $600 million in 2023. This deal follows Blueground’s second acquisition in just three months.
Anticipated developments in hospitality. Andreas Scriven, Deloitte’s top hotel consultant and industry insider, spoke with Skift and shared his predictions for a flurry of asset sales in the latter half of 2023. Scriven discusses the outlook for Europe, what it will take to boost the hotel asset market, why major players are not prioritizing consolidation, and why Amsterdam is currently the hottest city for hotel investors. He also shares insights on where hotel development is most innovative, which includes the Middle East and scrappy startups. Hospitality industry professionals seeking insights on what to expect this year won’t want to miss all the juicy details.
New partnerships to boost competitive advantage. The UK’s consortium for independent TMCs, Focus Travel Partnership, has welcomed a new partner: TakeTwo Travel Solutions. TakeTwo is an innovative global boutique TMC specializing in bespoke services for high-net-worth individuals, VIPs, and groups. The partnership brings the total number of TMC partners in Focus Travel to 52, and the consortium now boasts a group buying power of £1.3 billion. Not bad, huh?
Game-changing AI for the travel industry. While many companies are still trying to figure out how to incorporate AI into their businesses, Trip.com has already launched a game-changing chatbot within its app. Dubbed TripGen, this innovative tool is built on an API from OpenAI, the maker of ChatGPT. It offers users real-time travel tips, inspiration, and itinerary suggestions through a conversational interface. Trip.com says users can ask complex or vague questions and instantly receive tailored itineraries and advice for flights, hotels, transportation, and tours. And that’s not all – TripGen also provides personalized travel routes, itineraries, and booking advice in multiple languages. Trip.com has truly set itself to become the ultimate travel companion, thanks to its fresh and cutting-edge AI technology.
Taxis will be flying around Osaka. Flying taxis are coming to the World Expo 2025 Osaka, and visitors may get to be the first to experience them. Joby Aviation and ANA Holdings have been selected to showcase their electric vertical take-off and landing (eVTOL) aircraft, hoping to connect the Expo to other locations in the Osaka area. Joby’s four-seater eVTOLs are all-electric and have already been certified in Japan, with plans for a future Japanese rollout. With 28 million visitors expected at the Expo, this could be a flying start to the future of transportation! Exciting!
Here are some of the most exciting travel innovation stories right now:
Upgrading the airport experience.Taking the passenger experience into account in every detail, Helsinki Airport is providing travellers with its new ‘MyFlight’ service, aiming to make their journey as smooth and stress-free as possible. The service offers a range of personalized information, including a passenger checklist, an airport map, and up-to-date details on airport services en route to the departure gate. No more running around trying to find the gate – ‘MyFlight’ will remind passengers about boarding and any last-minute changes.
It’s time for chatbots. Two giants from the travel industry, Shiji and Amadeus have integrated their AI chatbots to facilitate the process of researching information and making bookings. The integration will enable Shiji ReviewPro Guest Communications users to be directed to the Amadeus booking flow. Once users fill in their details and are ready to book, they will be redirected to the iHotelier Booking Engine page. The chatbot will also enable guests to receive more personalized offers and shopping experiences, while hoteliers can add value to their direct booking channel.
Smart tourism kick-off. The city of Montevideo is about to become the latest Smart Tourist Destination, joining six other Ibero-American cities. The methodology analyzes governance, innovation, tech, accessibility, and sustainability. Being a smart destination is no easy feat, as it involves a major challenge that requires public and private entities to work together – but we can’t wait to see this process unfold!
Go ahead and pitch it!Are you a startup founder looking to make a big impact in the industry? Then this is for you. The EU-Startups Summit is hosting a Pitch Competition in Barcelona on April 20-21; trust me, you do not want to miss it. Rub shoulders with the top people in the industry and get the exposure your startup deserves. I’m hoping to see plenty of travel tech enthusiasts in the audience! But hurry, applications are closing soon…
Amenities on autopilot. Owners of short-term rentals can count on Sojo to forget about running to the store to stock up on shampoo bottles and toilet paper rolls for their short-term rental guests. The Texas-based startup has just raised $6.2 million in Series A funding. With this cash injection, Sojo plans to take its amenity automation platform for short-term rentals to the next level.
From here to there, and everywhere. Amsterdam-based startup Transferz has raised €6.5 million to help expand its mobility solution. The startup works with travel companies to offer pre-booked transportation products, letting them add their own branding for a customized touch. The platform already counts more than 750 airports, train stations, and seaports in their pocket. The fresh funding will enhance their tech and expand to offer even more options, including public transit like trains and buses.
No more crazy hours.Paris-born startup Brigad has secured €33 million in a funding round. Brigad is the platform that connects talented and flexible chefs, waiters, bartenders, and front-of-house staff with the businesses that need them, allowing both sides to be more dynamic and adaptable. The startup aims to give employees the ability to regain control over their schedule and get better pay and prospects. The investment will take Brigad to new heights, with plans to expand to more European cities and offer the community even more tools and events. Seems like there is a new go-to place for management teams looking to streamline their staffing and payroll administration.
Here are the top news stories from around the travel industry — let’s jump right in:
Streamlining tours and activities distribution. Tours and activities technology platform Holdbar has secured $1m in pre-seed funding. The Denmark-based company plans to use the funding to expand its team and develop an all-in-one software platform for tour and activities operators to help them distribute their products and services and drive efficiency. Holdbar intends to overcome the current problematic systems that prevent operators from integrating into distribution channels and negatively impact the customer experience.
Fly me to Hong Kong.Tourism recovery after the pandemic has seen many strategies implemented by destinations. However, one, in particular, has captured widespread attention: Hong Kong is giving away half a million airline tickets to fly in tourists. The program launches on March 1st and will continue for roughly six months, with tickets being distributed in phases. Tourists can also take advantage of special offers and vouchers, including over a million vouchers (valued at €11.60) that provide discounts on food, drinks, transportation, hotels, shopping, and attractions. Can we all agree that this approach to boosting tourism will change travelers’ perceptions when considering their next destination? I’m ready!It appears that Macau is following in Hong Kong’s footsteps with a similar program.
Boat Sharing Revolution. With the goal to make boating more accessible, Finnish boat-sharing startup Skipperi has raised €7m. The Helsinki-based company provides a shared-use boating subscription service and a peer-to-peer boat rental platform, both of which can be accessed via the Skipperi app. The startup currently offers over 400 boats across six locations and it aims to make boating more accessible, especially to those who find boat ownership too expensive. Skipperi offers practical and theoretical training to ensure safe boating and uses geofencing and AI to provide real-time information on boating conditions.
Vietnam’s Unique Offerings. Travel and experiences platform Klook has formed two partnerships with two of Vietnam’s top attraction players Sun World and VinWonders, aimed at increasing the visibility of Vietnam as a destination for international travelers. The digital marketing initiatives will feature promotional content and campaigns, and the partnerships will be vital in driving tourists to Vietnam, which is expected to welcome 8 million visitors in 2023. The country recorded significant growth in demand in 2022 and the partnerships will play a role in capitalizing on the rising demand.
Stronger tech and European expansion. Canadian startup RocketRez has raised $15 million for its ticketing and business operations platform for mid-sized tours and attractions companies. The platform offers e-commerce ticketing, revenue management, business intelligence, customer management, and retail and food sales. By capturing data from multiple digital touchpoints, the platform provides robust insights into customer behavior. The funding will strengthen the technology, add key leadership positions, expand sales, and develop partnerships.
Elevating travels with a fresh app.Lufthansa’s new app offers a streamlined booking process, improved check-in, and a digital wallet for seamless payments. Acting as a “digital travel companion,” the application proactively supports passengers throughout their journey with real-time updates and relevant offers. The app’s clean design and intuitive use make travel more accessible and convenient.
Let’s dive into the latest news about innovation, trends and startups in the travel industry:
Meet the city. Get ready to be inspired as we embark on a journey to explore the most innovative destinations in the travel industry! Our new series, “Meet the City”, takes you on a monthly adventure to discover the latest and greatest in tourism. Budapest, the city that has robots as guides, is our first stop. The hunt for the most forward-thinking cities in travel starts now – here we go!
Flying low. The travel sector has been hit with some surprising news as of late and the European travel landscape is undergoing major changes. Two well-known airlines, Flybe and Flyr, have recently announced that they will shut down. Despite differing circumstances, both companies could not secure the funds required to maintain their operations.
Expanding footprint in LATAM. Mondee, a tech-driven travel marketplace, has acquired Orinter, a travel provider with a strong presence in Brazil and LATAM. The acquisition expands Mondee’s geographic footprint and strengthens its presence in these markets. Orinter’s direct relationships with Latin American hotels and its 4,800 travel company clients will provide valuable cross-sell opportunities for Mondee.
Fresh Indian Acquisition. Easy Trip Planners, the company behind the popular EaseMyTrip brand, has made a strategic move by acquiring 55% of the hotel booking app, cheQin. This acquisition will strengthen EaseMyTrip’s position in the hotel booking market and give its customers access to a wider range of innovative solutions. CheQin’s algorithm presents the top five most affordable options from hotels and lets hoteliers view real-time booking requests.
A ticket to ride. A French startup that allows travelers to book low-carbon transportation, has raised €2 million in funding from various investors to support its growth. Tictactrip allows users to compare, combine, and book bus and train tickets and carpool from over 200 transportation providers in Europe. The platform calculates the carbon impact of each journey and aims to help address the environmental and societal challenges by promoting low-carbon transportation options. Pas mal.
Well, it’s not a humanoid robot as much as a robot-like-intelligence that will guide tourists in Budapest. The technology, developed by The Trip Boutique, matches Budapest itineraries with visitors’ interests, styles, tastes and desires to make each one a personalized itinerary.
It is truly remarkable to see Budapest, a city steeped in traditional culture and renowned for its majestic architecture, embracing high-end technology to provide visitors with a truly unique experience. The integration of cutting-edge technology enhances the city’s traditional charm and offers visitors an innovative way to explore and experience the city. Whether it’s through custom travel itineraries crafted by artificial intelligence or other tech-based offerings, Budapest is demonstrating that tradition and technology can coexist and enhance one another.
Also, taking the lead as a city caring for tourist’s experience means it is aligned with customer trends, and creating curated products takes experiences to a whole other level. The benefits it can provide are vast: the itinerary’s pinpoints are assured, research time is saved and, because it is customized by their own tastes and preferences, the content is relevant. With so much information laying around, having good, useful, relevant information is gold.
With that in mind, Budapest will likely provide an excellent experience for visitors, establishing the city as a strong brand and a trusted source of information, potentially leading to increased tourist interest and recommendation.
We caught up with both Fernanda Barrence, CEO of The Trip Boutique, and Csaba Faix, CEO at Budapest Brand, to gain a deeper understanding of the exciting project they have been working on. Keep reading to learn more about their thoughts and insights on the project.
Csaba Faix, Budapest Brand
FutureTravel: Budapest Brand partnered with The Trip Boutique to adopt AI technology to create travel itineraries for the city’s visitors. How did this idea come up and why did you decide to implement it in Budapest?
Csaba Faix: Budapest Brand has been looking for more interactive features for the official tourism information website. Because of the limitations of our current website, we were looking for a solution that could be implemented with ease. This is how we came across The Trip Boutique’s solution.
CF: We have created itineraries, articles and top lists about Budapest on our official website before. They were targeted at travelers in general and lacked the personal touch. We understood that not everybody travels the same way and wants to explore the same attractions.
Budapest is an open and diverse city. We wanted to show more diverse suggestions to the different types of travelers. We wanted to include more personalized articles without cluttering the website with dozens of articles and suggestions.
AI technology is a game changer in this field as it allows the visitor to really experience their own and unique Budapest. These visitors are offered POIs (points of interests) based on their preferences and choices. This will make them more engaged and excited before or during their travel to Budapest.
FutureTravel: What were the main objectives with the collaboration? What are your expectations from now on?
CF: Budapest Brand was fascinated by the The Trip Boutique platform. The POIs are curated by the Trip Boutique editorial team and local curators, which means that many local and off the beaten places could be included in the suggestions. If someone wants to get away from the central districts and explore the hidden parts of Budapest or venture off to tiny cafés, the AI-powered tool gives options for that.
We also wanted to promote the Budapest Card on the platform. The official city pass gives visitors free public transport, free guided walking tours, free thermal bath and free or discounted attractions. We inserted a small icon on all the suggested POIs if they accept the Budapest Card. With this we showed how you can see more and save more in Budapest. The direct sale of the Budapest Card was not a priority with this collaboration, the main objective was to create a cool and interactive addition to the website.
Budapest Brand believes that we should offer the same or at least very similar attractions and experiences for both locals and visitors. We understand that many visitors are interested in local spots and want to visit restaurants, bars, clubs and baths that locals frequent. These spots are not always easy to find but with the help of local curators and The Trip Boutique’s AI solution, visitors have the chance to feel like locals in Budapest.
Our expectation is that by introducing and suggesting new points of interests travelers will venture away from the central areas of the city and explore spots that have a more local feel. The amazing thing with AI on the platform is that if someone prefers the major historical sights in the heart of Budapest, the AI-powered system will recommend those to them based on the user’s preferences.
Another benefit was the data-analytics that we received from The Trip Boutique about the most liked points of interests and traveler behavior, length of stay, etc. This can help the Budapest Brand team to make better-informed marketing decisions.
FutureTravel: What was the most challenging aspect of making this collaboration happen?
CF: Most DMOs (destination marketing organizations) are public organizations that are operating under local municipalities, city halls or governments. Administration, the feedback from all stakeholder departments and thus a final solution may take longer compared with the commercial sector. We appreciated The Trip Boutique’s resilience and perseverance and that they understood how this system works.
FutureTravel: How are people — residents and visitors — responding to the use of the tool/feature so far?
CF: We have seen an outstanding interest by visitors who were planning their trips to Budapest. Our social media channels directed the users to try out the platform. The Trip Boutique’s AI solution has done a good job in creating 3-day itineraries that would fit the traveler’s preferences.
The tourist information website is targeted at leisure visitors to Budapest and is translated to 7 languages. The AI solution at this moment is available in English at our website. We are looking at how to expand our cooperation with the TTB to bring more languages and to make this solution available to an even wider audience.
Locals who have tried the TTB’s personalized planning tool were excited to find points of interest that they may pass by every day but haven’t noticed. We believe that we could also offer them new and exciting spots to discover in their own town.
FutureTravel: We wonder how cities will adapt to the tourism of the future, considering technology and innovation as means to connect with new generations, habits, and behaviors. How is Budapest working with technologies (such as AI) to attract visitors and enhance business prosperity?
CF: Budapest’s tourism has not been an early-adopter on technological innovations so far. There is a paradigm change taking place and we are tirelessly working on digitizing and using the latest innovations in our projects. Digital sales promotion tools and online advertising are already a part of our marketing. Data and research driven decisions are also important. As a cultural organization we are also working on bringing technology and contemporary developments to the art and festival scene. For the Budapest Spring Festival last year, we opened the Cinema Mystica exhibition that blended technology, art, light and sound design. Creating experiences involving technology in the offline space is also part of our mission.
At the end of the day, we believe that first hand experiences in Budapest, local stories and the atmosphere and vibe of the city will be more important than the new technologies. Eventually people will put down their smartphones and will visit destinations where they can really be offline. The Metaverse does not enable visitors (yet) to feel the invigorating warm water at the thermal baths of Budapest, to smell the freshly roasted espresso at a historical café, to dance the night away in an eclectic ruined bar in the Jewish district or to make eye contact and smile with a fellow traveler on the trams while looking at the World Heritage panorama along the Danube river.
We have to find the balance between real and digital experiences at destinations. They do complement each other.
Fernanda Barrence, The Trip Boutique
FutureTravel: Can you tell us about The Trip Boutique? What was the motivation to kick off this collaboration with Budapest Brand?
Fernanda Barrence: The Trip Boutique focuses on the AI-based personalization of travel experiences, giving destinations (and the most diverse types of travel brands) the superpowers to provide individual advisory to their travelers and visitors. By combining artificial intelligence with human expertise, The Trip Boutique has built a suite of proprietary tools and a match-making technology to identify the hotels, restaurants, bars, cafes, attractions, and experiences in a destination that best fits each traveler’s interests, lifestyle and tastes.
The partnership with Budapest Brand was therefore a great match: Budapest is an amazing, culturally rich, diverse and sizable city with no shortage of interesting offers. It is a fantastic case for the adoption of personalization tools like ours to help visitors discover the version of the city that appeals the most to them, beyond the main touristic sites and the typical top 10 lists. Besides sharing our vision on how individual travel experiences should be unique, Budapest Brand also saw the opportunity to elevate their visitor’s experience by helping them conveniently plan their stays and enabling them to have a truly authentic local experience.
And we can measure the success of this approach easily and in real-time: the feedback from visitors has been overwhelmingly good! We’ve been receiving comments like: “It made everything easy and helped me focus to make the best of my short stay”, or “So clever!” and even “Every city needs to have this!”. That says it all!
FutureTravel: How does The Trip Boutique’s tech solution stand out from competitors?
FB: Tech-based personalization is not easy to do well, it can come across as robotic and imprecise. That’s why our focus and motto have always been: “Technology with a human soul”. Our system augments 2 very human aspects: high-quality curation and smart personalization. Good recommendations can only come from good knowledge about places and about people. When well-curated data meets rich traveler profiles, you get great recommendations.
FutureTravel: With so much information laying around, customized services matter to customers to decode their wants and needs, organize them and facilitate decision-making. How can this curation mindset be applied to the travel industry?
FB: The travel industry is the perfect case for curating information, for several reasons. For one, the travel and leisure sector offers so many options to choose from – thousands in some destinations – that it is actually humanly impossible for travelers to process all of them. Information overload is a source of stress and can lead to decision paralysis – and who wants to feel stressed when planning for or enjoying their next holiday or getaway? The information overload affects not only travelers, but also travel professionals and advisors, and AI-based curating solutions will help them perform tasks better and elevate their roles.
Second, there is a massive amount of data either generated by travelers themselves or that they are willing to share about their dos and wants while traveling. This data is precious and in most cases underutilized, kept in isolated silos, or even uncollected by travel brands. Since personalization is about curating the right things for each individual, knowing those individuals well would be game-changing in the travel industry.
Recent research by Google (2022) shows that travelers are investing more time pre-trip (77% of their time on the preparation, planning, booking and dreaming phases) than on the trip itself (16% only). This is a real unbalance, a lot of it is spent on decision-making, and travel brands that help travelers navigate those phases with a curated and personalized approach will take a head-start in this inevitable transformation that will come. For that, established travel companies need to invest in getting to know travelers’ wants and unmet needs and derive solutions from it, but very often they move slowly, as they face the barrier of legacy business protection. Collaborating with start-ups in the field, such as The Trip Boutique, can be an easy and agile way to apply the curation and personalization mindset.
FutureTravel: While for many people AI is still a stereotypical remote reality; though, we are aware that it is used for creating algorithms, discovering patterns as well as decoding people’s behavior in order to improve their experience, especially when it comes to travel. How do you see travelers responding to adopting AI to their travel experiences?
FB: I believe that travelers are more than ready to experience AI. AI is already pervasive in many areas of life, and personalization, for example, is a reality in so many different industry verticals. The travel industry just happens to be a bit behind in some aspects, even though demand is there for AI-enabled services. For example, surveys show that travelers have overwhelmingly been demanding more personalized offers for years, and yet few established players have managed to attend to this demand. At The Trip Boutique, we can already observe the response from travelers: their feedback to our service is not only overwhelmingly positive but our service is also rated way above the industry average. That is thanks to AI tools and smart algorithms, which create a delightful and simple experience for our partners that are really different from the status quo.
FutureTravel: When we are talking about the travel industry – what are the key players that need to gather to apply tech innovation and bring AI closer to a larger public?
FB: In the travel industry, the large established players have the means and the reach to shake things up and bring AI closer to a larger audience, but are sometimes not nimble enough, or depend on legacy systems and processes that make it more difficult to bring innovation to the market. That’s why, as is often the case, we see the change starting slowly at a smaller scale with early adopters, until it gathers momentum. Look at the electrification of cars: it took years to change the industry until it reached a tipping point when almost every established car brand started to produce electric vehicles. That’s why we believe innovation and change in this area will come from collaborations between start-ups and established players. The Trip Boutique and Budapest Brands’ cooperation is a great example of that.
FutureTravel: In your opinion, what is the potential for tech innovation in the travel industry? What are the opportunities in the sector?
FB: There are many opportunities, which often center around providing better information or helping with the administration and logistics of traveling. Customer support is an area that could massively benefit from AI, greatly reducing costs and transforming the traveler experience.
The main opportunity that The Trip Boutique and Budapest Brands are addressing together are in travel planning and personalization. With such a significant amount of overwhelmed travelers who want and even need technology to help them navigate all the options and manage their trips better, there is a real and untapped opportunity ahead of us. Travelers want to be able to focus on the enjoyable part of vacations, which is experiencing the places they visit and their culture, history, food, architecture, and way of life.
But the opportunities don’t stop there: sustainability is on everyone’s mind, and technology can help travelers make better-informed decisions, and choose from socially and environmentally conscious companies. It can, in many ways, also help travel providers reduce their waste and carbon footprint.
