Startups in the travel industry have attracted about 1.3 billion US dollars
since 2006, a high total amount partially fueled by the funding amount doubling in 2010, compared to the previous year, according to research published by PhoCusWright. The total funding received by travel startups dropped in 2009, reflecting the globat economic environment, but picked up again and doubled in 2010, reaching 246 million US dollars.
Based on the date so far, PhoCusWright focuses an even better 2011 in what startup funding is concerned, as the total amount received by startups in the first few months of this year has already surpassed the 2009 total of 118 million.
65% of 600 of the surveyed travel startups that received funding are based in North America, another 31% are operating in Europe, and only another 4% are based in Asia Pacific (3%) and Africa. The PhoCusWright research reviewed the levels of funding based on company type – hotel, air, itinerary, inspiration – and area of expertise – booking, content and mobile.
Number of startups and associated funding by industry sector
The number of company in a certain travel segment or type has had no impact on the received funding. For example, hotels and itinerary companies received more funding than inspiration businesses, although the latter segment comprises fare more individual businesses.
Subsequently, there is no correlation between how big an area of expertise is in the travel market and the amount of funding invested in each segment.
By Amey MyersAmey, an intrepid traveler and avid blogger, roams the world, absorbing diverse cultures, flavors, and experiences. Her writing captures the essence of her adventures, inspiring others to explore. Amey's infectious passion for travel and storytelling epitomizes a life filled with exploration and adventure.
