Think of your best vacation memories: What did you do, and what made the experience particularly memorable? Was there any technology that surprised you while you were traveling – such as an informative travel app or a digitized payment solution you had not seen before? Chances are that many of your most memorable trips have several travel investors behind them – and that quite a few of these investors are in the sub-category of travel tech.

Travel tech has always been considered a very creative, innovative, and advanced industry, especially considering the many turbulent times it has been through. The travel industry (and the travel tech) has survived pandemics, and economic recession – among other things. With this in mind, it is certain that the travel industry will rise again once the Coronavirus vaccines have been distributed worldwide. But how will the travel industry look, after having been under pressure for so long?

– Startups should always try fundraising

Jan Hassel is the co-founder of the Nordic Traveltech Lab, and he has been working within the travel sector and travel tech space for many years. He says that in recent years, there has been a strong demand for interesting investment cases within travel tech.

– I have been starting companies, advising startups, and have done several investments in the travel sector – both for VC as investment director as well as on my own. This year, I think many investors have been a bit ‘on the fence’ about investing while waiting to see when the sector is coming back, but others will use the opportunity to get in at a low price, says Hassel.

Martin Jørgensen is an active investor, advisor, and consultant in several companies, primarily in the travel space. He says there might be more future investment opportunities within the startup scene during the spring of 2021, as many startups might discount their valuation.

– But even during the times we are going through now, I think startups always should try fundraising. Even so, they should be prepared to cut expenses while waiting for a response from the market, in case they are unsuccessful in their quest.

Sustainability on the agenda

Chances are that many of your most memorable travel experiences were backed by investors. The future on travelling relies not only on the travellers, but also the travel agencies and their supporters – within investor communities and governments. Photo: Krakenimages / Unsplash

The future of travel

2020 has not been an entirely ‘dead’ year for the travel tech industry: Despite a decrease in the number of travelers, Jørgensen says several companies have advanced further in their markets this year. Among them, there is the Norwegian hiking app Outtt, the Icelandic airline software vendor Dohop, and the Swedish micro-mobility service Voi Technology. The American vacation rental online marketplace Airbnb recently debuted on Wall Street, where it now is worth more than $100 billion. That is more than Marriot and Hilton combined.

– Many of the big ones have secured funding during the crisis, for example, Get Your Guide, etc. Personally, I will focus my investments primarily on tech-enabled companies with a focus on leisure in Europe in the short/medium term. I will be careful with investing in events, business travel, and group travel, as I expect a slower recovery says Jørgensen.

Many are probably wondering exactly what the future of travel is. Will we ever travel the way we used to or was all of that lost to the Coronavirus? In terms of humanity’s history, a lot of it has been shaped by the migrations and travels we have done for at least 70.000 years. So historically speaking, traveling is deeply embedded in us. Will the Coronavirus end it all? For any travel tech startups out there, Hassel and Jørgensen advise that companies look at the bigger picture. Hassel says there is one thing in particular that will stake the future of the industry.

– Vaccine, vaccine & vaccine! People will always want to go places. I guess we will see a lot of new startups coming, addressing the new challenges in the sector, says Hassel.

As the saying goes, chaotic times open up a lot of opportunities: Sometimes we all need to be challenged on how we do our work, and startups are in an ideal position for considering new ways of business.

– There is life after the pandemic, and people will travel again. I will advise startups to try getting investors to consider 2018/2019 levels and expect a very good return of business within 2022. Most investors have a long horizon anyway, and good vaccine news is coming in every week now. I think leisure travel will come back first, business people will be much more restrictive with travel, so the airlines will have to focus primarily on the leisure traveler for the medium term. Groups, conferences, shows, etc. will need to adapt much more to virtual options, than what has been expected earlier, says Jørgensen.

Nordic Traveltech Lab and Startup Norway want to offer travel tech startups the opportunity of signing up for the Nordic Travel Tech Incubator. Click the button below to register interest!

Register interest for Nordic Travel Tech Incubator

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Think of your best vacation memories: What did you do, and what made the experience particularly memorable? Photo: Andy Kelly / Unsplash

About Nordic Traveltech Lab

Nordic Traveltech Lab is a network whose purpose is to encourage and facilitate cooperation among industry partners throughout the region and to boost innovation, competence building, investment, technological development, environmental impact, and start-up activities in the Nordic travel tech industry. Per Arne Friestad is the CEO of the Nordic Traveltech Lab and says they will function as a connector between people, companies, and larger communities that up until now haven’t had any way to get in touch with others in the Nordic industry.

– The Nordic Traveltech Lab will be a “virtual” network, connecting national hubs, start-ups, public organizations, and investors. As such it will build on existing national and Nordic initiatives. The network will channel industry expertise and reflect the needs and priorities of the tourism and travel industry across the Nordic region, says Friestad.

About the Nordic Traveltech Lab's team

All the people listed below are considered as co-founders of the Nordic Traveltech Lab.

Per Arne Friestad joined the tourism industry in 2016, as CEO of AISPOT. He has previously worked with technology companies in the Nordic countries and Asia. Per Arne has a background in retail and technology and established a common trading platform for the sports industry in the Nordics. Today he is the CEO of Nordic Traveltech Lab AS.

Jan Hassel has been working within the travel sector and travel tech space for many years. He is also the Managing Partner of Auratus Capital, where he advises companies mainly in the travel & tourism sector with a focus on strategy, finance, and business development. On a daily basis, he is also working with innovation at the Norwegian University of Science & Technology (NTNU)

Per Arne Tuftin started his career in 1985 as a tour guide and later marketing manager at the Norwegian Tourist Board. He eventually moved on to become Senior Vice President and Director of Public Affairs, at the Norwegian Tourist Board. In 2004 he joined Innovation Norway as Senior Vice President and Director of Public Affairs and later Senior Vice President and Head of VisitNorway, Innovation Norway. Today he is holding the position of CEO of Norsk Reiseliv/Norwegian Tourism Partners.

Martin Jørgensen is an active investor, advisor, and consultant in several companies, primarily in the travel space. He is the chairman of Reisegiganten, Pere.com, and First Camp. He has also been a chairman for Scandinavian Travel Labs, TripX Travel AB, Reiseguiden Interactive, TouristOnline, and HSMAI. He has been the Co-founder of Etraveli, the COO of VIA Travel Group (Egencia), and the CEO of Gotogate.

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