Travel Tech: Massive Market at a Tipping Point

22nd March 2016  

Travel tech is perhaps the most bullish sector of all, given it’s massive addressable market size of $7.5 trillion. Given the massive size of the market, the travel industry is highly fragmented, with niche travel companies and apps covering once specific aspect of travelling, be it in-destination activities, alimentation or booking. Massive market size can perhaps also serve as an explanation to why travel tech isn’t seeing a rise of monopolistic businesses trying to cover all the market (like Google with search and Amazon with e-commerce), simply because the market is so large that newcomers are happy with taking a small bit of a sub-segment.

With size comes saturation: in spite of explosive growth in funding (see Financing Trends), the sector is becoming increasingly saturated, fragmented, crowded and hellishly competitive. U-Start assumes that his status quo will lead to a stand off between incumbents and smaller companies, after which only a handful of companies will successfully thrive given that incumbents will make moves to protect and expand their businesses.

Read more