What Travel and Transportation Startups Face Today (and The Days to Come)

According to the World Travel and Tourism Council, the coronavirus pandemic could cut 50 million jobs globally within the travel and tourism industry. This virus hit various travel companies round the world. they're facing an advanced year ahead, and lots of predictions suggest that it'll take them a minimum of 10 months to return to normal levels.

For some people, in certain sectors and not just travel, matters will exasperate and there are opportunities for the industry to return together to ease public panic and help one another recover.

However, if you observe China, during the primary half March, domestic travel has bounced back by 100% and is steadily increasing. Although for the US, Europe and most of the Asia Pacific countries, the common flight load and occupancy rate is predicted to hit single digits within the coming months.

Then, what about startups that are struggling during this sector? what's their future? Let's attempt to reflect on these three startups.


UBER (On demand transportation)

For Uber, business will certainly acquire when states and states open up (and stay open). In step with the info, an Uber driver could even make over $ 4,000 a week. He does this by driving 84 hours per week (12 hours a day), earning about $ 48 per hour including travel income, tips and bonuses.

The on demand transportation giant has other problems besides the pandemic. Uber faces questions regarding passenger safety. The unicorn was instead sued by the state of California (and Massachusetts) for the classification of the company's drivers as independent contractors (self-employed on a contract). California's AB5 law states that a lot of independent contractors are "misclassified" and must be employees. However, supporting a recent poll, 1000 drivers revealed that despite the pandemic, 71% want to stay independent contractors, while only 17% want to become employees.

In fact, they'd faced questions about profitability before the pandemic. COVID-19 certainly adds to those challenges - plus the regulatory issues mentioned earlier, with cities locked under quarantine and with limited travel and recreational activity restrictions. With this we will see together that regulatory risks must be managed by travel companies, especially within the post-pandemic period with all the changes.

Will fear of a virulent disease forever change the adoption of the ride-sharing business model within the world? will be. This business will still attempt to survive in line with the wants of local travelers as Uber's main consumers who want to enhance their comfort—health for one thing—in terms of transportation.

Judging from the condition of the transit system across the US which has been badly hit by the pandemic—with a 90% reduction in passengers—Uber and on-demand transportation companies seem to own a chance which will be filled. Reluctance to use conveyance, which is taken into account “more prone” to transmission, may accelerate the trend for transport passengers to change to ride-sharing.

Snaptravel (Hotel Booking Service)

Despite the dark days of the pandemic, the restructuring at Snaptravel has made the corporate tougher and better positioned to pursue its ambitions. This startup which will help us get all-time low prices on hotels and airlines has successfully redefined what it's they need to build: Snaptravel is making a splash with a disruptive AI-powered e-commerce platform.

Right now, Snaptravel is on the thanks to recruiting, while they're not rehiring laid-off staff. Instead, they're doubling their investment in machine learning, data analysis, hiring engineers to create Snaptravel, which is more "talkative" and intuitive.

Many things are impressive from their pivot during Covid-19. By leveraging their AI predictive ability, Snaptravel improved hotel offerings by SMS per user preferences and saw bookings increase by 25% from the conversations they started. Snaptravel sees that personalized, communicative, relevant and timely messages make customers desire Snaptravel understands their needs and creates demand that previously didn't exist.

The hotel industry has also recently experienced a gradual recovery. The thought of ??traveling to tourist destinations in cities, islands, and even other countries seems to possess faded. However, all travelers are now setting out to turn their attention to city tours that appear to be ready to spoil them still - one amongst them is that the idea of ??a staycation. It takes specific and personalized information to search it out. It takes specific and personalized information to seek out an area that avoids crowds, is near home, and might escape boredom. Evidently, Snaptravel customers are willing to pay VIP status to urge the services of a politician who is prepared to handle an order with many specific needs and special facilities; these customers were even over happy to produce tips to indicate their appreciation for the travel savings.

Traveloka (Online Travel Agency)

Traveloka implements the steps needed to optimize business in order to make savings and refocuses on preparing strategies to welcome the new normal era. In Indonesia and Vietnam, for example, Traveloka sees that the domestic travel sector, travel or short-distance entertainment activities have begun to stretch and bounce back, along with the high public awareness of the Covid-19 pandemic and lifestyle adjustments to the current situation.

This also includes developing a portfolio of Travel and Lifestyle product services in key markets, as well as expanding the Financial Services line to better support products in the travel and lifestyle ecosystem.

Through its Financial Services products, Traveloka also offers financial, payment, and insurance solutions for the underbanked community to help users overcome financial constraints in fulfilling their travel and lifestyle needs, such as PayLater, PayLater Credit Card and insurance products that make it easier for users to get comprehensive protection.

Basically, Traveloka partners—starting from transportation, accommodation, activities, and restaurants—also experience tough obstacles on their business. From the start that consumer demand has dropped dramatically while demand for refunds has increased significantly, occupancy rates have dropped, to restaurants that have had to temporarily close their business operations due to the high level of uncertainty in this crisis situation.

Posted by TINC Admin