Travel Startup concepts

How do these 5 Travel Startup Concepts Compare?

The following 5 travel startup concepts have come from being relatively low-profile startups to FinTechs that have survived a heavily saturated sector. A lot of travel startups launched during the past few years no longer exist due to a lack of funding or due to lack of user engagement.

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Overview: Affirm

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Acquisitions: 2 Acquisitions

Total Equity Funding: $420M in 3 Rounds from 6 Investors

Headquarters: San Francisco, CA

Description: Affirm allows users to make purchases for travel/products and pay off for the purchases in easy, fixed monthly payments

Founders: Nathan Gettings, Jeffrey Kaditz, Max Levchin

Website: https://affirm.com

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Overview: Airfordable

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Total Equity Funding: $120k in 1 Round from 2 Investors

Most Recent Funding: $120k Seed on August 23, 2016

Headquarters: Chicago, Illinois

Description: Airfordable allows users to buy flights for a deposit upfront and pay off the rest
in an easy, flexible payment plan before departure

Website: http://www.airfordable.com/

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Holiday villas in Mallorca made to give you the perfect summer.

 

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Overview: Uplift

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Total Equity Funding: $8.2M in 1 Round from 4 Investors

Most Recent Funding: $8.2M Series A on November 10, 2014

Headquarters: Sunnyvale, CA

Description: UpLift allows users to book travel now and spread their travels into affordable,
low-interest payments

Founders: Stu Kelly, Brian Barth

Website: http://www.uplift.com

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Overview: Flyr

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Total Equity Funding: $15.34M in 5 Rounds from 24 Investors

Most Recent Funding: $8M Series A on January 18, 2017

Headquarters: San Francisco, California

Description: FLYR predicts and manages price volatility of travel products, enabling a broad range of solutions for travelers

Founders: Cyril Guiraud, Alexander Mans, Jean Tripier

Website: http://flyrlabs.com

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Overview: FomoTravel

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Total Equity Funding: Undisclosed Amount in 1 Round from 1 Investor

Most Recent Funding: Seed on March 2, 2017 / Undisclosed Amount

Headquarters: Cape Town, NA – South Africa

Description: FomoTravel is a unique social savings platform that allows keen travelers to pay for future travel experiences.

Founders: Andrew Katzwinkel

Website: http://fomo.travel

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Travel Startup concepts

The above 5 travel startup concepts can be successful in any economy because they allow users to make payment ‘before’ they take the flight and not continue to make payments after the trip has ended. The reason is simple: If the user doesn’t pay the installments as scheduled they won’t be able to take the flight which leads to fewer cases of people walking away from their debt.

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The travel startup concepts have a few drawbacks

  1. How do they secure an airline ticket for 3 months or do they purchased it right away and just withhold your ticket information (information which a user could always get by just calling the airline directly)?
  2. Some airlines do require credit card verification at check-in. In the case of the 5 travel startup concepts, the booking might be an issue if it is made through the airline’s website and not an Online Travel Agent (OTA) or a brick and mortar agency.
  3. Additionally, if the verification process is declined and the notification might take up to 24 hours. Should the travel startup concepts decline the financing or the fare disappears the user is stranded. Considering that the down payment is due immediately, the user will also have to wait for the processing of the refund. This presents an undesirable situation for the very user group these travel startup concepts cater to.

We will contact these 5 travel startup concepts to shed some light on credit transparency as a liability. Our question: What is the repayment rate considering that micro loan sites repayment rates are around 98-99%?

 

 

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Kevin Moseri

He has experience in developing online marketing campaigns, online & mobile product launches, and EU funding regulation. He is an active FinTech & MarTech blogger with interests in online banking, mobile banking, mobile payment, and insurance

View all posts by Kevin Moseri →

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