COVID-19 Has Shaken Corporate Travel Startups. But They Refuse to Sink!
The Covid-19 pandemic has shaken the travel industry to its core. Travel restrictions all over the world have aggravated concerns for most travel startups. One of the major problems each startup is facing is to convince their investors to hand over the cash and trust them for a future comeback. Besides, the pandemic has highlighted the loopholes that exist in the offline model of tourism, which is the mode of booking for more than 60 percent.
Even amidst the chaotic uncertainty due to the virus, several travel startups are making efforts to cater to a section of the market where they were previously unable to reach. Most of them are spending this time off work to develop their virtual travelling section and to work on understanding the customer needs for enhancing the quality and direction of their future operations.
Some travel startups have remained optimistic even in such difficult times, hoping that the travel industry will bounce back stronger than ever post Covid-19.
A US-based startup, Voyager HQ, had shifted to a virtual platform for its inaugural “Corporate Travel Pitch Night” scheduled for March end. As a specialist in the hospitality, tourism and travel industry, the company managed to execute the event and attracted innovators from the corporate travel space.
Speaking about conducting the event despite the Covid-19 pandemic, Voyager HQ said, “We believe there’s no better way to approach these challenges than by gathering like-minded innovators to share information, advice and feedback.” It also said, “More questions and concerns have arisen than have been answered in recent weeks, especially around when, where, and why people will begin traveling again — and how startups and large travel companies can continue to create revenue and bring value during this time.”
Another travel startup, Traxo, is also working its way to help travel managers overcome the crisis. As stated by the CEO, Andres Fabris, the firm already had a strong value proposition for its clients and had thought of ways in which its clients could capture potential spend savings and take care of the blind spots.
Speaking about the company’s benefit from Covid-19, Fabris said, “The pandemic really put a boldface, double-underline on that value proposition, since Traxo was the only tool corporate travel managers had immediately available to them to help untangle the situation of which employees were in, or had recently been to, a Covid-19 hotspot.”
Several startups are striving on the increased revenue earnings from the first quarter of 2020. For instance, Las Vegas -based travel startup, Trip Concierge claims that its subscriber numbers rose four times over the past few months, which will help them cover the current losses and remain positive.
It is important to note that recessions in the past have always created opportunities for market disruption and made way for new technology and thriving businesses. Both Airbnb and Uber emerged out of the 2008 crash by finding unique ways of revenue streams. So, there is silver lining. The industry will not only continue to exist, it will emerge stronger through innovation.