TNMT Newsletter #159: Report season
Hi there, A
fter more than six months buried in data, our lead analyst on funding dynamics, Anna Schneider , has finally emerged from her analytical cave to unveil our much-anticipated annual flagship report on the state of the Travel and Mobility Tech (TNMT) Sector.
Long-time subscribers will recall our previous editions:
This year, we’re switching gears. Changing times call for new angles.
So, who are we focusing on now?
The real players.
Stakeholders deeply embedded within the Travel and Mobility Tech sector—like airlines, hospitality providers, and mobility companies.
These entities aren't just throwing money around for a quick return; they're investing with purpose—through corporate venture capital, acquisitions, and joint ventures—driven by a need to sustain and enhance their operational viability.
This pivot in our approach offers a richer understanding of the innovation dynamics at play.
Anna Schneider may have sacrificed her tan for this, but we promise the insights in this report will brighten your day.
Check out the full details below.
Enjoy.
Your Lufthansa Innovation Hub Team
Research
The Metaverse in Aviation: The “B2B2C Aviationverse” Future
Before we get to our report, there is a second new research piece ready for you.
In our ongoing exploration of the metaverse's potential impact on the aviation industry, we've completed our second scenario analysis (out of four).
Quick reminder: Each scenario is crafted to reflect varying degrees of consumer adoption and metaverse consolidation, setting the stage for a range of potential futures.
After exploring the “Golden Islands” scenario in the previous chapter, we now turn our attention to the second potential scenario: “The B2B2C Aviationverse.”
This scenario imagines a future where consumer adoption of metaverse technologies remains relatively low, yet a singular, integrated metaverse infrastructure in aviation has successfully emerged.
How so?
An alliance of OEMs, suppliers, and airlines has co-developed a metaverse platform to jointly develop industrial use cases along the aviation supply chain.
To dive deeper into this possible future, let’s jump into the full article.
Research
New Report: The Travel and Mobility Sector Attractiveness Report 2024
Amazing, you kept on reading!
Now, let’s dive into our new report.
First, a bit of background: As mentioned before, we analyzed the specific investment priorities of the four major sub-sectors in Travel and Mobility Tech, namely:
Our goal was to compare the investment strategies across these sectors, allowing us to draw insightful conclusions about their approaches to innovation. Here’s the methodology we used.
Decoding Corporate Innovation Priorities
Investment decisions by large corporations are inherently unique.
In the current travel and mobility corporate arena, these decisions generally pursue one of four major strategies:
To systematically examine the strategic emphases of travel and mobility corporations, we classified each of their over 1,200 investment transactions from the past five years into one of these strategic “priority buckets.”
This approach helped us identify clear patterns in these companies' investment behaviors, revealing which innovation priorities are driving their financial commitments.
Additionally, by comparing investment activities across these four priority areas, we uncovered insights into the strategic growth bets different stakeholder groups within the industry are making.
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Keen to get a sneak peek of what we found out? Here we go.
Insight #1
When examining the investment priorities across the travel and mobility sectors, clear trends and differences emerge, yet notable similarities exist.
Market Expansion stands out as a key focus for all sectors, reflecting a universal strategy aimed at increasing market share or breaking into new segments. This pursuit is foundational to corporate growth and consistently appears across our analyzed sectors.
Operational Efficiency is another dominant theme, with firms investing in technologies and solutions that streamline internal processes and enhance value chain efficiency. This underscores a widespread commitment to tackling operational challenges through digital transformation, a necessity in today's business landscape.
Sustainability shows a split landscape. Aviation and Ground Transport sectors, that are both asset-heavy and have significant environmental impacts, demonstrate a robust commitment to sustainability, likely spurred by increasing regulatory demands and public scrutiny. In contrast, Online Travel and Hospitality are noticeably behind in this area.
Lastly, investments in the Digital Consumer Experience are relatively minor across the sectors. Given the current low customer sentiment, especially in the airline industry, this area represents a significant opportunity for enhanced focus and investment.
These insights are just the tip of the iceberg.
Our report dives deep into each of the four subsectors of Travel and Mobility Tech for a much more comprehensive analysis.
Discover detailed insights into each sector's approach to innovation by downloading the full report for free.
Press Picks
Our Recommended Must Reads
FAKE REVIEWS – Holidaymakers are being warned about a rise in scams in which fake social media accounts are used to impersonate airlines, a trend we explored in one of our previous TNMT analyses.
AIRPORT ROBOTS – In Alaska, where wildlife encounters on airport runways pose significant safety risks, the Alaska Department of Transportation & Public Facilities (DoT) has introduced a unique solution: a four-legged robotic guard animal disguised as a dog, fox, or coyote.
LOYALTY TRENDS – Gen Z and millennial traveler preferences may change the future of airline loyalty programs. The loyalty program landscape is shifting, especially as younger generations make up a larger share of the traveling population.
GROUP TRAVEL – Coordinating a group trip with family or friends can feel exhausting. With group travel rising in popularity, companies such as Mindtrip, Inc. , Expedia Group , and Airbnb are looking for ways to simplify the process by incorporating new tools.
CUSTOMER SATISFACTION – In a first-of-its-kind move by an Indian airline, Air India Limited has partnered with iCoupon to turn passengers’ boarding passes into digital F&B vouchers during flight delays.
TOP TEN STARTUPS – Here are ten promising European startups that are playing a crucial role in sustainable transformation, leveraging cutting-edge technologies and new business models to create efficient, eco-friendly mobility options that cater to the needs of modern society.
Deal Tracker
Most Recent Investment Deals
– VC –
Nium - The Singapore-based real-time, cross-border payments company raised $50 million in Series E funding, led by an unidentified sovereign wealth fund in Southeast Asia. The funds will be used to accelerate its growth in the B2B payments market.
OneOrder - The Egypt-based logistics startup for hotels, restaurants, and catering raised $16M in a Series A round led by Delivery Hero Ventures. With the money, the company plans to expand into the GCC region by the autumn of 2024.
Torpago - The California-based white-label commercial credit card and expense management platform raised $10M in Series B funding co-led by Priority Tech Ventures and EJF Ventures. The investment will support the implementation of its solution, compliance, and product suite expansion.
Qstay - The Dubai-based hospitality and rental investment property management platform raised $4.6M in pre-Series A funding from undisclosed investors, which the company intends to use to expand operations and development efforts.
QOMMUTE - The French passenger information platform raised $2.6M in a deal led by Re-Sources Capital. The funds will be used to integrate with the biggest French transport operators and develop its wider European presence. The company aims to become the European benchmark for real-time passenger information.
Holibob - The Edinburgh-based provider of tours and experiences technology confirmed the addition of an undisclosed amount of funding to its previously announced Series A raise, led by Guinness Ventures. The new funds will be used to further tech development.
Volocopter - Six weeks after warning about potential insolvency, the German electric air taxi developer secured an undisclosed amount of financing from unnamed existing investors, allowing the company to continue operations.
– M&A –
Dabble - The Toronto-based AI startup offering tools to help companies use AI more effectively for things like content creation and work pipeline creation, was acquired by the New York-based tour and experience booking app Headout to enhance the latter’s AI capabilities and personalization. The deal amount is unknown.
InsurEvo - The UK-based operator of travel insurance brands AllClear and InsureandGo was acquired by NSM Insurance Group for an undisclosed amount.
Reed & Mackay - The Italy-based corporate travel and events services company was acquired by the London-based global travel and event management company Reed & Mackay for an undisclosed amount. The deal is the sixth acquisition in three years by the Navan Group, of which Reed & Mackay is part.
SHR GROUP - The Houston-based AI hospitality platform for hotels and casinos was acquired by The Access Group, based in the UK, to increase the latter’s foothold in the North American market. The deal amount is unknown.
Soar Vacation Rental Services - The Texas-based short-term rental management services company was acquired by Porter Vacation Rental Management as the latter continues growing its portfolio. The deal terms were undisclosed.
Xwing (Acquired by Joby Aviation) - The autonomy division of the San Francisco-based autonomous flight tech company was acquired by Joby Aviation for an undisclosed amount. The deal is meant to help position Joby advantageously for the commercial rollout of autonomous flight technology and potentially expand the company’s business with the US Department of Defense.
Virtual Reality Specialist/engineer/consult//Specific certified EASA drone operator
6moGreat read! Tnx for sharing..