What’s in store for Travel in a post-Covid world?

1. Predictive & Operational Efficiencies

Facing great pressure, businesses across the travel sector are seeking ways to minimise inefficiency in their technology, operations and business models. Tools that will allow them to cut costs, save time and cut steps in processes will become increasingly important in the current travel climate. Especially as tourism spending is unlikely to return to pre-crisis levels until 2024.

We are interested in businesses and tools that harness the power of data and predictive technology to streamline processes, prioritise delivery and mitigate issues before they arise.

2. Repurpose Surplus

The ongoing upheaval caused by COVID-19 has led to an extreme surplus of supply and assets in the travel, events and hospitality industries. Empty hotel beds and venues, plane seats and space, unused event equipment and most importantly a largely redundant workforce, all reinforce the pressing need to focus on how we reimagine value from the untapped assets in this space.

A Snapshot:

• International tourist arrivals are projected to plunge by 60 to 80 percent in 2020 (Source: Mckinsey)

• Forecasts indicate that it will take four to seven years for tourism demand to return to 2019 levels, which means that overcapacity will be the new normal in the medium term. (Source: Mckinsey)

4. Staycations & Slow Travel

Environmentally conscious travellers and those wanting to connect to their local area on a deeper level gave rise to trends in staycationing and slow travel. Today, overseas travel restrictions and an increased desire to stay safe and healthy in controlled travelling environments, have seen these trends boom in recent months. For example, we saw the sales of tents and RVs soar over summer, and biking is booming in major cities offering people freedom without the need to rely on public transport. We want to explore what it means to Staycation and enjoy the journey in the 21st century.

A Snapshot:

• The RV Industry Association saw a 50% increase in shipments this July, compared to 2019.(Source: WSBT)

• At Halfords, sales of tent pegs are up by 45%, airbeds by 130%, gas stoves by 300%, cool boxes by 180% and camping chairs by 120.(Source: The Guardian)

• AirBnb are promoting a ‘change of scene close to home’ campaign with nearby stays to ‘live, work or relax’(Source: Airbnb)

Born in our Venture Studio

Launched in the height of lockdown, Byway focuses on personalised flight-free holidays, with endless inspiration for local hotspots, hidden viewpoints and awe-inspiring detours - and none of the hassle of booking and co-ordinating it all yourself.

6. Everything & Everyone Online

Historically, large parts of the travel industry operated offline, advertising and selling in real life. The world of travel has now exclusively moved online. We are looking for founders who are finding ways to bring travel businesses who still operate offline into the digital world. We see lots of examples of this (the lack of digitisation in camping, to high street tour operators, to travel experiences that have remained IRL only).

A Snapshot:

• In 2019, more than 40 percent of US travellers used mobile devices to book their trips. (Source: Mckinsey)

• In Europe and the United States, as many as 60 percent of travel bookings are digital. (Source: Mckinsey)

• The commission rates on hotel aggregator platforms, which range from 10 percent for larger hotel brands to 25 percent for independent hotels, also make it difficult for SMEs to compete in the digital space.(Source: Mckinsey)

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There has never been a better time to disrupt and reboot the travel industry. Are you working on something great in the travel space? Please get in touch.