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.[panel style=”panel-primary”] [panel-header]
Overview: Affirm[/panel-header] [panel-content]
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[/panel-content] [/panel] [panel style=”panel-danger”] [panel-header]
Overview: Airfordable[/panel-header] [panel-content]
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/[/panel-content] [/panel]
[panel style=”panel-success”] [panel-header]
Overview: Uplift[/panel-header] [panel-content]
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,
Founders: Stu Kelly, Brian Barth
Website: http://www.uplift.com[/panel-content] [/panel] [panel style=”panel-primary”] [panel-header]
Overview: Flyr[/panel-header] [panel-content]
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[/panel-content] [/panel] [panel style=”panel-danger”] [panel-header]
Overview: FomoTravel[/panel-header] [panel-content]
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[/panel-content] [/panel]
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.[accordions id=”1597″]
The travel startup concepts have a few drawbacks
- 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)?
- 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.
- 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%?