After the huge success of first generation travel companies such as Yatra and Make My Trip, investors are truly interested in funding the next generation which bring in a refreshing change by catering to specific needs such as planning a tour and making hotel bookings. Some of the next generation companies that have garnered massive funding are Tripvillas, Trip38, iTraveller, TripHobo, Tripoto, Travel Triangle, WeAreHolidays, and Stayzilla.
According to Tarun Davda, the director of Matrix Partners the, old travel companies have always been engaged in offering services such as flight bookings. However, these companies have now realized their revenues are shrinking as the airline companies are fighting it out with online travel agents (OTAs). Tarun Davda is also a major investor in Stayzilla which an accommodation booking service and WeAreHolidays which customize the holiday bookings.
For instance, Rehan Yar Khan of Orios Venture Partners' is interested in making investments in a space where small hotels get a brand space branded and get popularized by enterprises such as OYO Rooms. He stated that with this there is a huge market the hotels that have gone unnoticed so far. This way the company can do lots just like the way Ola has been established in the cab service space. Most of the new travel startups are focusing on niche services such as planning the vacation, asset light hotels, and selling content related to travel that has potential for growth.
Research analyst for Asia Pacific at Phocuswright, Chetan Kapoor stated that the gross booking for Indian online portals was up by 12% in 2014 and this figure is only expected to go up all through 2016.