Travel and Tourism

Immerse in the travel and tourism industry that aims to offer enriching experiences and encourage sustainable global travel.

Future of traveling

The travel and tourism industry has bounced back from COVID-19 and is picking up speed again. Its expected market growth and forecasted investment leap speak for themselves. The future of travel and tourism seems optimistic, powered by tech innovation and changing tourist’ preferences. And the industry has already started transforming the way we travel and experience the world.

Why it matters:

As the industry recovers, its promising perspective and a heightened interest of investors open vast opportunities for travel and tourism startups to leverage:

  • Eco-friendly tourism
  • Health and safety innovations
  • Authentic experiences
  • Remorse work retreats
  • Adventure tourism, etc

Between the lines:

Startups should remain pragmatic and understand that they’ll face numerous challenges on their way to success, such as fierce competition, customer hesitation, and funding hurdles.

We’ve worked with numerous travel and tourism startups, so our team knows what it takes to build a successful and investor-attractive business

$3B+
Funds attracted
600+
Startups boosted
80+
Verticals explored

What we do:

We’re a one-stop shop for fundraising assistance, outsourced M&A advisory, business growth consultancy, and impeccable pitch deck design.

Go deeper:

Check out our travel and tourism market research to discover industry trends, potential startup risks, and crucial tips on getting funding.

1.5x growth
The travel and tourism market is set to reach $1.3T by 2032.

 

80%
In 2023, the number of international tourists hit 80% of the levels seen before the pandemic.

Driven by tech advancements and shifting travelers’ desires
235M+

In 2023, global tourist travel doubled compared to 2022.

$1T

In 2022, international tourism revenue hit $1T, up 50% from 2021.

8/10

Tourists feel safe to travel nowadays.

VENTURE LANDSCAPE

In 2022, travel and tourism startups secured over $17.4B in venture funding

Key verticals:

  • Accommodation and hospitality
  • Transportation
  • Travel agencies and tour operators
  • Technology and digital platforms

Leading travel and tourism investors we worked with

Write to us to know more

Travel and tourism startup roadblocks

So as not to lose out on success, startups should navigate the following challenges.

Cutthroat market:

Low entry barriers attract lots of industry newcomers. And this makes the market highly saturated.

Stats: there are over 4K startups in the sphere of travel and tourism nowadays.

Why it matters

Competing with industry behemoths may lead to:

  • Problems with attracting investors and building a client base
  • Lower profits owing to price wars
  • Stress and burnout among founders and staff

What it takes:

To capture a market share, travel and tourism startups need to:

  • Focus on niche markets
  • Provide personalized offers
  • Build a strong brand and reputation
  • Leverage innovative marketing strategies
  • Partner with top players

Low profit margins:

The point is that the travel and tourism industry operates on thin profit margins. And it’s because of high marketing expenses, seasonal fluctuations, and substantial commission fees.

Why it matters

Tight profit margins may cause:

  • Problems with covering operational costs
  • Limited resources for growth
  • Increased risk of startup failure

What it takes:

To address this challenge, founders need to:

  • Manage their costs and expenses carefully
  • Develop high-margin services
  • Build a loyal client base
  • Create additional revenue streams

Customer trust:

No customer trust, no business growth. Client loyalty is pivotal for the travel and tourism industry.

Why it matters:

Without customer trust, startups risk ending up like a one-time visit company rather than a repeat business. Plus, it may also:

  • Decrease customer retention rates
  • Lower revenue
  • Increase costs on attracting new customers

What it takes:

To win tourists’ hearts, startups should:

  • Provide client feedback to build credibility
  • Implement loyalty programs
  • Offer high-quality services
  • Ensure personalized assistance

Funding quest:

The travel and tourism industry is one of the investors’ darlings.

Stats: by 2027, the travel and tourism industry is projected to attract nearly $22 billion in investments. Yet, fierce competition and possible economic slumps cast a shadow on this seemingly bright prospect.

Why it matters:

If a startup loses out on fundraising, it usually leads to:

  • Scalability hurdles
  • Potential business failure
  • Inability to gain a competitive edge

What it takes:

To nail down investments, travel and tourism startups need to:

  • Develop a clear and concise business plan and financial model
  • Pitch to VCs interested in travel and tourism
  • Prepare to demonstrate growth potential and traction
  • Have a strong expert team
  • Forge partnerships with top industry players

FAQs

How attractive is the industry to potential travel and tourism investors?

Investors are highly interested in the travel and tourism industry because it’s resilient, has a fast-growing market, and promises high returns.

If you are a travel and tourism startup, how easy is it to raise funding today?

Nowadays, it may be quite challenging to secure the necessary funds for a travel and tourism startup. Yet, it’s possible, especially with the appropriate approach.

How long does it take to create a pitch deck and financial model for a travel and tourism startup?

We typically finish everything in two to three weeks. However, during busy periods, it could stretch to a month. Please reach out to us for more detailed information.

What are the key mistakes travel and tourism startups make in their pitch decks?

Most travel and tourism startup pitch decks lack a persuasive investment storyline and a clear market decision. Plus, the absence of a robust business strategy and proof of progress. Like this, travel and tourism venture capitalists don’t get the full picture and may shift their focus to a more promising and urgent project.

How competitive is the travel and tourism market?

The travel and tourism market is akin to a battlefield, with lots of companies trying to carve out a larger market share.

What services do you provide for investors looking to invest or already investing in travel and tourism?

We help investors evaluate travel and tourism investment opportunities by conducting in-depth research and presenting valuable insights in a clear, visual format. Plus, we offer comprehensive fundraising services to travel and tourism and related companies in our portfolio.

Do you provide travel and tourism M&A support?

Yes, we do! We provide travel and tourism M&A assistance by searching for promising deals, evaluating them, and guaranteeing seamless partnerships after the deal is finished.

Do you make intros to travel and tourism VCs?

Of course! We help link you up with the right venture capitalists in the travel and tourism space. By assessing your project’s team setup, round size, and product, we’ll guide you in partnering with investors throughout the entire deal and beyond.

Do you have available data or research to purchase on the travel and tourism market?

Certainly! Our specialists deliver customized insights into the dynamic travel and tourism sector. Our in-depth research encompasses a thorough analysis of the industry landscape, competitive evaluations, and a broad market perspective, all designed to grant you a distinct edge. We leverage reliable data sources to help you recognize promising opportunities and potential challenges and identify current investment trends.

Which growth stage of companies have you worked with in the past?

We ensure growth and fundraising guidance to the new market entrants, steering them right from the early Pre-Seed phase through Series C and beyond.

Have a travel and tourism project in mind? We are here to help

From end-to-end fundraising support to M&A advisory and growth hacking, Waveup will help catapult your travel and tourism project to new heights. Leave your email, and let's talk!

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