Travel industry is a fast growing segment, with a huge consumer base and differing needs. It is one of those industries where you the “one solution fits all” does not work for the end consumer. You need to segment your travelers based on their travel needs and purpose, and offer solutions accordingly. The business traveler will differ from the leisure traveler. Along with the purpose for travel, the travel budget and other travel related aspects also differ. If you are an individual traveling, your bookings and travel solutions will differ from that of a family traveling.

Travel startups need to figure out which travel segment are they targeting before they set out with their solution. 2016 saw a boost in the travel and hospitality industry, with virtual travel solutions gaining pace. While it seems to be a rosy year for the start-ups that received venture capital funding in the past year, it seems to be a tough path for the seed funding startups. The reason being the funding standards have gone substantially higher, and it will be difficult but not impossible for the seed funded travel startups to grow with these expectations. The path that the CEO will have to follow is going to be tough, and it is important they stay rooted on the path towards growth. Here are a few tips that entrepreneurs in the travel industry ought to keep an eye out for if they want to grow.

Let your Model Talk

When you are working towards building your travel start-up such that you can be awarded a good funding to keep it running, you need to have the ideal business model. What is your business model? How are you planning to generate revenue for your startup? What have you achieved till now with this model? If you have a model that has been able to achieve something good for you by now, it is the ideal model for you. It is the business model that should talk about what you wish to achieve, or what you have achieved with the travel startup. If you have a model that can boast for itself, you have won half the battle at the funding. Basically, try to work on building a business model, and figure out how you will generate the revenue for your business with this model. This will help you gain good funding. All travel startups should be ready with this in the coming year.

Go Niche with your Offering

There are just too many travel startups that seem to be offering the one solution fits all model. You need to think different if you want to build your start-up. Trying looking for a niche for your travel startup! For this, you need to identify the travel segment you are planning to cater to. There are many travel products like cruises and tours that you can endorse with your expertise. These are niches that have takers. If you don’t want to generalize your customer segment, you can choose a particular segment like business or leisure travelers, and finalize a product for them. You can even localize your business. But, working on a niche either for the customer segment or product is essential for travel startups.

Offer Travel Solutions

Find out pain points that exist in the travel segment at this point. There will be many, and you can identify one that you can help solve. This should be enough to start out with your travel business. Either create a travel website or an app that will help solve these pain points, and offer it to the end consumers. Before you start out, you will need to seek answers to questions regarding your target audience, and what their needs are. You need to analyse trends in travel business, this will help develop the business model. You will need to define points that will help develop the business model, which in turn will get you funding. Don’t copy something that already exists. Find out something that you can serve to the audience, which is both unique and necessary.

These tips will not only help you define your travel business model, but also get you the requisite funding. Start with solving gaps, to define your model and revenue generation methods.

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