Mapping the state of travel tech

Investments, key players, and trends to watch

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 December 12 – 13, 2017 | San Francisco, CA

A-ha! is a gathering of Fortune 1000 executives, investors,

academics, and startup founders discussing the next wave of
ideas and technologies that will shape our world.
SPEAKERS INCLUDE

Daymond John Liza Landsman Mudassir Sheikha Benedict Evans

The Shark Group Jet.com Careem Andreessen Horowitz
Star of ABC’s Shark Tank President Co-founder & CEO Partner
and CEO Sold to Walmart for $3.3B MENA’s $1.2B Unicorn “Working Out What’s
Happening Next” at a16z
FUBU
Founder/CEO
ABOUT THE PRESENTER
Thomas Sineau
Intelligence Analyst, CB Insights
Thomas Sineau is an intelligence analyst at CB Insights, where he
produces data-driven analysis and research reports on startup,
venture capital, and emerging tech trends across the consumer
space.
Prior to joining CB Insights, he worked in London as an Investment @TSineau
Analyst at REV Venture Partners focusing on early-stage
investments and at Deutsche Bank where he was part of the
Consumer & Retail Investment Banking team. Thomas holds a MSc
from the Université Paris-Dauphine in France. [email protected]

www.cbinsights.com 8
Table of contents
11 Increased deals, key startups and markets

24 Airbnb pushes incumbents to adapt

32 Categories to watch:
• Luxury
• Activities, touring & info
• Smart luggage

50 Travel tech horizons: AI, Blockchain, Hotel-as-a-Platform

9
What is travel tech?
 Includes: Companies leveraging software
and technology to offer services and
products focused on travel and tourism,
including booking services, search and
planning platforms, on-demand travel, and
Travel tech recommendation sites, among others

 Excludes car-hailing companies like Uber but

includes car rentals and long distance car
sharing like Turo and BlaBlaCar

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GLOBAL TRAVEL TECH:
Financing trends

11
Global travel tech equity funding since 2013:

$15 BILLION
across

1,300 DEALS
12
Travel tech annual global financing history Travel tech funding on
2013 – 2017 YTD (11/10/17) track for record year

Thus far, 2017 has

seen $4.9B invested
across 302 deals, putting
this year on track as a
potentially record-setting
year for both deals and
funding.

With $1B raised in Q4’17,

Virgin Galactic signed the
largest deal so far this
year, followed by unicorn
Airbnb with a $447M
Series F follow-on raised
in Q1’17.

13
Travel tech quarterly global financing history Intense deal activity
Q1’13 – Q3’17 during first half of 2017

Q1’17 and Q2’17 hold the

quarterly record for travel
tech deals, on par with
Q2’16.

Q3’17 saw $1B in funding

across 65 deals with
Indonesian unicorn
Traveloka’s $350M
Series B-II being the
biggest deal.

14
Travel tech global deal share by stage Seed and angel deal
2013 – 2017 YTD (11/10/17) share decreases
Early-stage deals (seed /
angel and Series A) have
represented the majority
of travel tech deals since
2013.

To date, approximately
60% of 2017 deals have
gone to early-stage
companies, with a B2B-
focused travel startup
seeing the year’s largest
early-stage deals: Upside
raised a $50M Series A.

15
Largest travel tech deals since 2013 Airbnb dominates
2013 – 2017 YTD (11/10/17)

The travel tech space

has seen 25 $100M+
deals since 2013,
including two $1B+
deals.

Home-sharing unicorn
TBU: top 10 Airbnb has attracted 3
out of the top 5 largest
deals.

16
Most well-funded travel tech startups
As of 11/10/17

17
Most active travel tech VCs An international crowd
2013 – 2017 YTD (10/11/17)

Half of the 6 most active

VC investors are located
outside of the US.

While 19 out of their 52

travel tech investments
are startups based in the
US, Asia and Europe are
home to 14 companies
each.

500 Startups leads with

16 unique travel tech
investments since 2013.

The Most Active Travel Tech Investors Are An International Crowd 18

GLOBAL TRAVEL TECH:
Emerging geographies

19
Travel tech global deal share International startups
2013 – 2017 YTD (11/10/17) claim two-thirds of
global deal share
The US is the largest
single country with 31%
of global deal share since
2013. India comes in
second, with 10% of deal
share, while China is third
with 8%.

However, when looking

at share of global
funding, China comes in
second with 25%, right
after the US with 42%.

Mapped: Top Travel Tech Startups Around The Globe 20

 The most well-funded travel tech startups around the world Asian and European
As of 10/17/17 travel tech on the rise

Asian countries such as

China and India are
home to sizeable
startups.

While many Chinese

startups have been
capitalizing on soaring
outbound tourism, Indian
companies such as Oyo
Rooms are more focused
on the fast-growing
domestic travel market.

Note: To create the map, we identified countries with 10+ private travel tech startups that have raised funding since 2016, then highlighted the top
3 most well-funded startups from that list in each selected country

Mapped: Top Travel Tech Startups Around The Globe 21

Travel tech drivers
CHINA INDIA

Boom of
Soaring Rising Growing
Chinese
vacation rental domestic travel network of
travelling
market market budget hotels
abroad

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 China is home to some of Airbnb’s rivals
Tujia is a China-based home-sharing rental
startup with 650,000 listings in China and other
countries

Select investors: GGV Capital, Lightspeed China

Partners, Ctrip and Homeaway

Total funding: $763.7M

Valuation: $1.5B

XiaoZhu is Chinese short-term lodging sharing

platform with over 200,000 properties mostly
located in China

Select investors: Morningside Ventures, Legend

China Capital, Yunfeng Capital and JOY Capital
120,000
Total funding: $200M

Valuation: $1.0B

23
GLOBAL TRAVEL TECH:
Corporate activity

24
Notable travel tech corporate activity headlines
HYATT AND WYNDHAM INVEST IN
HOME-SHARING RIVALS TO AIRBNB
June 28, 2015

25
Travel tech corporate annual global financing history Corporate activity on the
2013 – 2017 YTD (10/23/17) rise
Corporates and their
venture arms have
participated in 67 deals
so far this year.

Largest corporate deal in

2017 is Expedia’s $350M
injection in Indonesian
unicorn Traveloka.

China-based Tencent is
the most active investor
with 7 deals, followed by
Amadeus Ventures with
5 investments.

Expanding Horizons: Corporate Investors Bet On Travel Tech 26

 Online travel agencies bets in travel tech Strengthening their
2013 – 2017 YTD (10/26/17) position

The big 4 OTAs are

facing multiple
challenges: the rise of
Airbnb and early-stage
travel tech startups
gaining traction.

They have made 25

acquisitions and 10
startup investments in
the travel tech space
since 2013.

Expedia and TripAdvisor

were the most active
with 10 deals each.
Note: Orange lines represent acquisitions; green lines represent investments

Where The Big Four Online Travel Agencies Are Placing Their Bets 27
Airbnb a threat for the booking incumbents?

Airbnb Strategy Teardown: Ahead of Potential IPO, Airbnb Looks Beyond The Hotel Industry 28
Booking platforms expand
From consolidating their market …to moving into new …and expanding their service
share… geographies… offering

Where The Big Four Online Travel Agencies Are Placing Their Bets 29
Largest VC-backed travel tech startups exits M&A dominates exits
2013 – 2017 YTD (9/30/17)
70 IPOs and M&A
transactions since 2013.

With 20 exits already (1

IPO & 19 M&A), 2017 is a
record year for travel
tech exits.

Majority of deals are

<$100M.

The top exit since 2013

was Expedia-backed
Despegar‘s IPO in Q3’17,
which valued the
company at $1.75B.

Timeline: Travel Tech Exits Take Off As Startups & Corporates Go On Acquisition Sprees 30
Travel tech merger & acquisition activity M&A dominates exits
A timeline of M&A deals Q4’16 — Q3’17
Over the past 12 months,
3 VC-backed travel tech
startups have been
acquired for over $100M:
Skyscanner ($1.7B),
Luxury Retreats ($200M),
SilverRail ($148M).

Travel tech startups have

also been active
acquirers making up
almost half of the
acquisitions that have
taken place between
Q4’16 and Q3’17.

Timeline: Travel Tech Exits Take Off As Startups & Corporates Go On Acquisition Sprees 31
GLOBAL TRAVEL TECH:
Categories to watch

32
Travel tech market map New travel tech
categories are emerging

Startups on our travel

tech market map
together have raised over
$10B, with booking &
search categories having
the highest number of
startups.

While home-sharing and

car-sharing already count
one or more unicorns,
luxury, activities touring &
info, and smart luggage
are still emerging
categories.

From On-Demand Private Jets To Budget Hotel Networks: 90 Startups Changing How We Travel 33
CATEGORIES TO WATCH:
Luxury

34
Travel tech market map Travel tech is entering
the luxury segment

From luxury vacation

rentals to private jet
booking, travel tech
startups targeting the
luxury segment are on
the rise.

Private jet startups have

raised close to $250M
since 2014 while a
number of luxury
vacation rental startups
have been acquired over
the past years.

From On-Demand Private Jets To Budget Hotel Networks: 90 Startups Changing How We Travel 35
BP bets on private jet booking
Victor is an on-demand B2C jet charter platform
specializing in the private aviation industry.
The company offers a subscription-free, on-
demand marketplace allowing members to
check pricing options and aircraft specifics
before booking the flights they need.
BP Ventures led $20M round will be used to
develop a B2B marketplace according to reports.

36
Luxury rentals startups are making headlines
AIRBNB SAID TO BE PLANNING NEW
TIER FOR LUXURY VACATION RENTALS
June 29, 2017

37
 Selected private luxury rentals startups Luxury meets Airbnb

A number of luxury
rentals startups with 1k+
4,000+ listings listings have received
funding over the past
couple of years.
4,000+ listings Luxury Retreats had
received $16M from
iNovia Capital before
being acquired by Airbnb
2,400 listings
in Q1’17 for $200M.

Recently, Paris-based Le
Collectionist has raised a
$10M Series B, partially
1,100 listings
used to acquire Ibiza-
based Bonder & Co.
38
 AccorHotels deals in luxury rentals Can AccorHotels be the
2013 – 2017 YTD (11/10/17) luxury Airbnb?

French hotel chain

AccorHotels has
acquired 3 luxury rentals
companies with a
combined 10k listings.

It has also invested in

Miami-based Oasis,
along with competitor
Hyatt.

AccorHotels made it
clear that it wanted to
compete with Airbnb on
the luxury segment.

Note: Orange lines represent acquisitions; green lines represent investments

39
CATEGORIES TO WATCH:
Activities, touring & info

40
Travel tech market map Tourist activities
startups are gaining
momentum
Startups in this category
include booking
platforms for activities
and tours, online travel
guides, virtual concierge
services and itinerary
recommendation
platforms.

It also includes near-

space tourism with Virgin
Galactic having recently
raised $1B.

From On-Demand Private Jets To Budget Hotel Networks: 90 Startups Changing How We Travel 41
Activities, touring & info: an attractive market
From significant share of global …to attracting investors… …and incumbents alike
travel revenue…

Tours and activities

$135B in 2016

10%

90%

Source: Phocuswright 42
GetYourGuide has raised $75M this year Investors are betting on
travel activities booking
GetYourGuide is a Berlin-based booking platform for travel activities from sightseeing and platforms
historical tours to sport activities, museums, and event tickets. The company recently
crossed the 10M tickets booked threshold, with half of those booked in 2017. Singapore-based Klook
has recently raised $60M
Select investors: Battery Ventures, KKR, Spark Capital, Nokia Growth Partners, Highland
Europe from Goldman Sachs
and Sequoia Capital
China among others.

Other recently funded

activity startups include
PlacePass (Q1’17), Trip
Guru (Q4’17), TourRadar
(Q4’17) and Withlocals
(Q4’17).

43
 Online travel agencies bet on restaurant booking

Note: Orange lines represent acquisitions; green lines represent investments

44
Airbnb launched “Trips” last year
As of November 2017:
• 3,100 experiences
• 40+ cities, 26 countries
• Guest paying $55 per booking on average

Airbnb Strategy Teardown: Ahead of Potential IPO, Airbnb Looks Beyond The Hotel Industry 45
CATEGORIES TO WATCH:
Smart luggage

46
Travel tech market map Luggage 2.0

A number of startups are

launching smart luggage
products that include
USB ports, battery
charging, or more
advanced features such
as GPS tracking.

Interestingly, a significant
share of these startups
have launched
crowdfunding
campaigns.

From On-Demand Private Jets To Budget Hotel Networks: 90 Startups Changing How We Travel 47
 Most well-funded smart luggage startups Connected luggage

While Away is the most

well-funded startup with
$31.1M in total funding,
Key features: built-in USB chargers, direct-to-consumer its competitors include a
number of additional
features such as location
tracker.

All operate a direct-to-

Key features: location tracker, digital lock, weight sensors, USB port, dedicated app, Bluetooth, direct-to- consumer distribution
consumer
model with a higher price
point compared to non-
connected luggage.

Key features: 2 built-in chargers, weight sensors, location tracker, dedicated app, Bluetooth, direct-to-
consumer

48
“Robot” luggage companies rely on crowdfunding

Over $700k raised on Over $580k raised on

Indiegogo for the “world’s first Indiegogo for this robotic
motorized rideable luggage” Over $740k raised on suitcase
Indiegogo for this autonomous
suitcase

49
GLOBAL TRAVEL TECH:
Travel tech horizons

50
TRAVEL TECH HORIZONS:
Artificial intelligence

51
 Intelligent assistant for business travelers
Voya is an AI-powered personal travel agent aiming 30SecondsToFly develops an AI-powered corporate
to simplify the booking process for business travel assistant, Claire, aiming to make it easy for
travelers. It offers services via smartphone, tablet, managers to track and analyze travel expenses
and computer. while making it easier for employees to book.

Disclosed Funding: N/A Disclosed Funding: N/A

Select Investors: 500 Startups, Global Founders Select Investors: Plug and Play Accelerator, JetBlue
Capital, Motu Ventures Technology Ventures (through Navigator program)

Worth A Visit: 10 Early-Stage Travel Tech Startups To Watch 52

 AI applied to travel companies pricing forecasts
FLYR creates price forecasts and leverages price Perfect Price uses machine learning to manage
predictions to create products that aim to maximize revenue and pricing for companies in the car rental,
travel search revenue. hotel, travel, and retail industries on a SaaS model.

Disclosed Funding: $14.3M Disclosed Funding: $2.7M

Select Investors: Amadeus Ventures, AXA Strategic Select Investors: Alchemist Accelerator
Ventures, JetBlue Technology Ventures, Plug and
Play Ventures, Streamlined Ventures, Thiel Capital

Worth A Visit: 10 Early-Stage Travel Tech Startups To Watch 53

 Chatbots improving the traveler experience
Destygo is a platform that allows travel and HeyMojo develops automated text and voice chat
hospitality companies to build an AI-powered solutions for hotels and restaurants.
assistant for their users.
Disclosed Funding: $70k
Disclosed Funding: $1.1M Select Investors: GSF India
Select Investors: AccorHotels, Partech Ventures, Pole
Capital

Worth A Visit: 10 Early-Stage Travel Tech Startups To Watch 54

TRAVEL TECH HORIZONS:
Blockchain

55
TUI bets on blockchain to end online travel
agencies era
“Booking.com is a great brand,
but they create superior
margins because they have
monopolistic structures.
Blockchain destroys this.”
Fritz Joussen,
CEO, TUI

Source: Skift 56
Blockchain for a new distribution model?
Winding Tree aims to reduce the cost of travel distribution
using a blockchain-based decentralized open-source
distribution platform.

Several airlines have already decided to partner with the

startup: Lufthansa, Swiss International Air Lines, Austrian
Airlines, Brussels Airlines and Eurowings.

57
 Blockchain-based loyalty program and ID
Loyyal is a blockchain-based loyalty and rewards ShoCard develops ID management solutions based
platform. The startup is partnering with IBM, on the blockchain technology. Applications include
Capgemini and Deloitte among others. airline passengers ID verification.

Disclosed Funding: $1.5M Disclosed Funding: $5.5M

Select Investors: Hayaat Group, Dubai Future Select Investors: AME Cloud Ventures, Recruit
Accelerator Strategic Partners, Correlation Ventures

58
TRAVEL TECH HORIZONS:
Hotel-as-a-Platform

59
AccorHotels is expanding its customer base

“My hotels are open 24/7. We have

240k people rendering services. Why
can’t they be at the service of the guy
next door … I want people to not be
afraid to enter into hotels.”

Sébastien Bazin
CEO, AccorHotels

Source: Bloomberg 60
 AccorHotels’s Hotel-as-a-Platform model
Booking platform Concierge and local services Co-working space

A distribution platform open to A distribution platform for services A distribution platform for co-
independent hoteliers working space with concierge
and accommodation services
AccorHotels recently announced
it would discontinue this initiative
by end of year.

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