The travel industry has undoubtedly been one of the hardest-hit sectors during the COVID-19 pandemic. With travel restrictions, lockdowns, and a general fear of the virus, people have been hesitant to embark on trips, leading to a significant decline in travel bookings and revenue for companies in the sector. However, prior to the pandemic, the travel startup scene was thriving, with companies like TravelPerk securing substantial funding and expanding their operations.
TravelPerk, a Barcelona-based travel management platform, raised $160 million in a Series D funding round in November 2019. This funding round was led by Kinnevik, a Swedish investment firm, and included participation from existing investors such as DST Global and Target Global. The company’s total funding at that time reached an impressive $294 million.
TravelPerk’s success in securing such a substantial amount of funding was reflective of the overall peak in travel startup funding that occurred prior to the COVID-19 outbreak. Investors were optimistic about the potential of innovative travel startups that aimed to disrupt the traditional travel industry and provide more efficient and personalized travel solutions.
The funding received by TravelPerk allowed the company to expand its operations and enhance its product offerings. The company offers a comprehensive platform that enables businesses to manage their travel bookings, expenses, and policies in one place. With its user-friendly interface and advanced features, TravelPerk quickly gained popularity among businesses looking for a more streamlined and cost-effective way to manage their corporate travel.
In addition to TravelPerk, several other travel startups also experienced significant funding rounds prior to the pandemic. Examples include TripActions, a corporate travel management platform that raised $250 million in a Series D funding round in June 2019, and Klook, an online travel activities booking platform that secured $225 million in a Series D+ funding round in April 2019.
These funding rounds allowed these companies to invest in technology development, expand their teams, and scale their operations globally. They were able to attract top talent and establish partnerships with airlines, hotels, and other travel service providers, further enhancing their offerings and market presence.
However, the COVID-19 pandemic brought the travel industry to a standstill, causing a significant decline in travel bookings and revenue for these startups. TravelPerk, like many other companies in the sector, had to adapt quickly to the changing circumstances. The company launched new features to help businesses manage cancellations and refunds, introduced flexible booking options, and provided real-time travel advisories to its users.
Despite the challenges posed by the pandemic, TravelPerk has remained resilient and has continued to expand its operations. In July 2020, the company announced the acquisition of Albatross, a UK-based travel management platform, to further strengthen its position in the market. This acquisition allowed TravelPerk to expand its customer base and offer additional services to its users.
While the peak of travel startup funding occurred prior to COVID-19, companies like TravelPerk have demonstrated their ability to adapt and innovate even in the face of unprecedented challenges. As travel restrictions ease and people regain confidence in traveling, these startups are well-positioned to capitalize on the recovery of the travel industry.
In conclusion, the travel startup scene experienced a peak in funding prior to the COVID-19 pandemic. Companies like TravelPerk secured substantial investments, allowing them to expand their operations and enhance their product offerings. While the pandemic posed significant challenges for the travel industry, these startups have shown resilience and adaptability. As travel restrictions ease, they are poised to play a crucial role in the recovery of the travel sector.
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- Source: Plato Data Intelligence.
- Source Link: https://zephyrnet.com/travel-startup-funding-peaked-pre-covid-now-travelperk-and-others-are-scaling-up/