Navigating the New Norm

Views on the Travel Tech Space Post COVID-19

Consequence of COVID-19
01
Recovery Timeline
02
Consumers & Opportunities
03
Emerging Segments
04

CONSEQUENCES OF COVID-19

Our observations on how COVID-19 has affected markets and firms in the industry.

Visitor Arrivals By Countries (2020)

Data Source:

Since the outbreak of the virus in late January, Asian countries have closed their borders, reducing tourism and business activities between said countries; moreover, residents returning to their own countries are required to self-isolate for 14 days.

The majority of South-east Asia countries experienced a fall in visitor arrivals since February. The drop is significant in March and April (over 80% compared with 2019). Some even had 0 visitors in April.

TRAVEL TECH COMPANIES PIVOTING TO CATER FOR COVID-19

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CASE STUDY 1

KLOOK

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CASE STUDY 2

AIRBNB

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CASE STUDY 3

TRAVELFLAN

 
Image by Curtis MacNewton

RECOVERY TIMELINE

Image by Unknown Wong

 Major ASEAN Countries & Cities

Image by Victor Garcia
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Image by Thomas Tucker
Image by Bharath Mohan
Image by Peter Hammer
Image by CK Yeo

 Travel Sectors

Image by KAOTARU

INTERNATIONAL TRAVEL

International air travel will continue to be volatile:

  • It is highly unlikely to return to pre-pandemic levels in 2020 as fears of flying remain an ongoing concern.

  • Brian Pearce, chief economist for IATA expects a slight recovery in the second half of 2020.

  • Bookable seat capacity has reduced to 62% of normal capacity despite an average breakeven capacity of 77%​

  • Amid low demand, it is difficult for airlines to raise prices despite their lower seat capacity - double the reason for concern.

  • We predict that it will not be until 2023-2024 that air travel make a full recovery to pre-pandemic levels.

 

CONSUMER BEHAVIOR AND OPPORTUNITIES

Forecasting the behavioral changes of consumers due to the pandemic, paired with opportunities which will arise as a result of said changes.

CHANGES IN PREFERENCES

We believe that travelers will evolve to value both privacy and hygiene.

In a post-COVID environment, there will be a natural fear of crowds and being within close proximity of others. Furthermore, with the likely continuation of social distancing into the future; traditional, large group traveling becomes less feasible. 

Privacy and the option to travel in small groups therefore becomes more important.

Furthermore, travelers will instinctively be concerned with hygiene, both in maintaining their own sanitation and the condition of the places which they travel to.

POTENTIAL OPPORTUNITIES

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We believe our portfolio company, TripGuru has the opportunity to capitalize on the changing preferences of customers.

Specializing in tours of small groups between 5-8 people, TripGuru provides a local perspective with guides from the area. Local guides, with a full understanding of the area are able to bring tourists to perhaps unknown spots which are naturally less congested than the big attractions, allowing consumers to experience the local life without needing to merge with other big crowds, keeping their privacy.

Furthermore, smaller groups are able to rent private vehicles and keep track of hygiene easily compared to others who may use public transport.

Fulfilling the needs of customers in the future, there is reason for TripGuru to be optimistic.

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We further view another portfolio company, Telkie as another firm which could grasp the opportunities created by the diverging inclinations of consumers.

Providing a means of communication between traveler and hotel/residence, Telkie allows customers to find deals with all its partnered hotels without needing to scroll through each website while allowing both parties to converse.

Telkie would allow customers to more easily communicate to hotels their specialized needs post COVID, may that be rooms who are distanced from other occupied rooms or certain assurances regarding hygiene and safety of the hotel.

Like TripGuru, we see Telkie as a firm being able to overcome the difficulties of COVID and come out stronger on the other end.

 
Image by Anete Lūsiņa

EMERGING SEGMENTS

Aspects of the industry which we believe, while untapped in the past will emerge as a result of COVID-19.

VR Headset
Shopping Mall Escalators
Airport
 

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