The tech industry is a buzz right now, and it’s mainly because venture capital investors and angel investors are putting in a lot of funding into funding business models that are well within the world of travel. Travel apps are getting pushed forward in a lot of different ways, and money is coming through to establish more and more funding for companies that are working within this arena. The amount of money getting pushed is from $500 million to the billions of dollars, and it’s even having some analysts wondering what would have become of companies like Kayak if they were launched later, during this boom.
It’s A Moving Market
There are a lot of different companies buying, and not just individuals or travel firms alone. TripAdvisor, for instance is purchasing several brands, and already has 29 brands under their tutelage. It has recently picked 4 major companies, and spent over $352 million in acquisitions thus far. There are also other sites moving, including many from the company itself, which is starting to acquire a great deal of brands to bolster their already big infrastructure in terms of travel and reviews.
HomeAway has also been listed as a major player in this world, already taking over 22 businesses, and looking to spend even more on getting more management apps, and travel elements.
The Returns Stall
The interesting thing to note about all these travel startups getting picked up, bought out, and acquired is that it’s not the main bread and butter that investors are gaining ground on. Analysts looking at the last 2 years will recognize that these are not the main sources of income for most of these companies, which is definitely telling in a lot of ways. The returns may be stalling, and therefore this may not be a huge boom that some people are hoping for.
Regardless of the numbers, travel is in, and venture capitalists are taking note on all levels. As more and more tech goes into the mobile platform arena, it’s going to shake up the travel industry and acquisitions as a whole.