Startup Trends: 4 companies that benefit from travel recovery
A new holiday travel season is shaping up and with that, more people will be spending considerably on trips to visit friends and loved ones. AAA predicts nearly 80 million will travel more than 50 miles from home over the upcoming Thanksgiving holiday, 1.7 million more than last year, and 2 million more than pre-pandemic levels in 2019. The management consulting firm McKinsey & Co. predicted in a recent report that travel spending is expected to increase by 3% year-over-year for the next six years.
Forge Global reported positive developments for three privately held transportation and travel companies over the summer. And the expected uptick in the industry could bode well for a variety of cutting-edge private companies such as car-sharing firm Turo, low-cost airline Breeze Airways, campsite booker Hipcamp, and global travel website Omio.
Turo forms new partnerships
Founded in 2009, San Francisco-based Turo provides car sharing across the U.S., Canada, and Western Europe, allowing customers to rent vehicles from a community of vetted private car owners. In recent months, the company has achieved growth in part through partnerships with companies that provide rental cars and other related services.
In September 2024, Turo announced a partnership with Uber which allows Uber customers to rent vehicles from Turo's selection using the Uber app. And in late October, Turo forged a partnership with CrashBay, a marketplace that provides collision and car repair services for vehicles. CrashBay's digital platform gives Turo car owners access to certified repair shops.
Turo’s Forge Price™ is $15.78 as of November 19, 2024, which implies a valuation of $1.93 billion, a 55.6% premium over the company’s last-known post-money valuation. The company’s list of investors includes Google Ventures, Kleiner Perkins, Allen & Company, General Motors Ventures, and Mercedes-Benz Group AG.
Breeze Airways expands its routes
Founded in 2017, Breeze Airways offers customers low-priced tickets to underserved locales along with benefits such as high-speed onboard Wifi and easy booking with a proprietary app. The company avoids flights in large metropolitan areas and favors secondary airports with less traffic and less travel times.
In October 2024, the Cottonwood Heights, Utah-based airline announced new flights from Gulfport-Biloxi (Miss.), Ogdensburg (N.Y.), and Salt Lake City (Utah) to Orlando (Fla.), and from Erie (Pa.) to Tampa (Fla.), with one-way fares starting at $49.
Breeze’s Forge Price™ is $540.11 as of November 19, 2024, and aligns with its last-known valuation of $1.2 billion. Among its main institutional investors are Aries Capital Partners, BlackRock, Knighthead Capital Management, and Sandlot Capital.
Hipcamp acquires booker of high-end campsites
Founded in 2013, Hipcamp has emerged as an online campsite booking company through a series of partnerships and acquisitions.
In late October 2024, the company — which serves campers in the U.S., Canada, and Australia — announced that it acquired BookOutdoors, an American online travel booking platform for campgrounds, RV parks, cabins, and glamping resorts. According to Hipcamp, the acquisition helps it meet the growing demand from campers who want to stay in full-service campsites.
Over the past decade, Hipcamp has given customers access to over 140,000 campsites. In the past year, more than 3.3 million nights were booked using Hipcamp, according to the company.
Hipcamp’s Forge Price™ is $8.01 as of November 19, 2024, and aligns with its last-known valuation of $374.5 million. Hipcamp's venture backers are Andreessen Horowitz, AngelList's Syndicate Fund, August Capital, Benchmark, Bond Capital, Index Ventures, and Maiden Lane Ventures.
Omio provides a convenient way to cancel trips quickly
Founded in 2013, Berlin, Germany-based Omio has emerged as a leading digital platform for booking trains, planes, buses, and ferries. Recently, the company, which serves markets in the U.S., Canada, and Europe, has developed a way to cancel unwanted bookings efficiently.
In August 2024, the company announced the creation of a function that will now allow holders of train, bus, and ferry tickets the opportunity to cancel their trips for any reason up to two hours before departure. In the event of cancellation, according to Omio, a customer will receive a payment of up to 80% of the purchased fare. The addition of this “cancel for any reason” service has been made possible through Omio's partnership with Companjon, an insurance firm that will underwrite this effort.
Among Omio’s main outside investors are Goldman Sachs Asset Management, Lazard Asset Management, and Stack Capital Group.
