TNMT Newsletter #167: Cross-border learnings

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Research?

Unpacking Asia's Corporate Investment Trends in Travel

You might recall that in June of this year, we published our annual Travel and Mobility Sector Attractiveness Report.

• The report offered a comprehensive look into the investment priorities of major global corporations across aviation, ground transport, hospitality, and online travel.?
• It revealed key areas of focus and highlighted the startups attracting the most attention, providing a powerful picture of where the future of corporate travel innovation is headed.

However, while the report gave a global perspective, it didn’t address one crucial aspect: regional trends.

• Specifically, it lacked an in-depth look at the investment strategies of one of the world’s most important innovation hubs—Asia.?

• Today’s analysis fills that gap, focusing on the corporate investment priorities of companies based exclusively in the Far East.

Why Asia, you might ask? The answer lies in Asia’s undeniable influence on the global Travel and Mobility Tech landscape.?

• As we’ve repeatedly shown in previous reports, such as our widely read "State of Travel and Mobility Tech in Asia," Asia has long been at the forefront of travel innovation.?
• The continent has consistently driven forward-thinking developments, particularly in how travelers plan, book, and experience their trips, for instance, through WeChat’s mini programs, to name just one example.?
• Asia’s mobile-first approach and rapid adoption of digital platforms have made it a testing ground for new technologies and consumer behaviors that are often 3-5 years ahead of the rest of the world.

With today’s analysis, we build on our global sector report by zooming in on five standout trends that set Asia apart from its global peers.?

These trends reveal where corporations in Asia are placing their growth bets and how their investment priorities differ from those in other areas of the world.?

Understanding these trends isn’t just relevant for professionals operating in Asia—it’s crucial for anyone wanting to glimpse into the future of travel and mobility.?

In other words, this article offers a window into where innovation is happening now and what’s coming next.?

Without further ado, let’s preview three of those five key insights.?

For the full picture, check out the full analysis.

Highlight #1

When analyzing the sectors driving corporate investment in Travel and Mobility Tech in Asia, two stand out: Ground Transport and, more notably, Online Travel.?

This is a striking difference from the global landscape, where Aviation companies have dominated corporate investment activity.?

However, in Asia, especially OTAs have surged ahead, leading the innovation race with a significant portion of the sector’s investment dollars.?

What’s driving this investment buzz in Online Travel?

There are several key factors at play.

One reason for the surge in investment activity by Asian OTAs over the past two years can be attributed to their increased profitability, driven by the delayed but robust recovery in travel demand following the pandemic.?

• As travel resumed, these OTAs saw their revenues (and profits) climb, putting them in a stronger financial position to reinvest in innovation and startups.?
• In contrast, many key players in Ground Transport, such as Grab in Southeast Asia, have faced financial challenges in recent years, operating at a loss and thus contributing to their decreased share of investment between 2020 and 2023.?

Furthermore, many OTAs in Asia, especially the large ones, such as AirTrip (Japan), Yanolja (along with its travel-tech platform, Yanolja Cloud Solution from Korea), EaseMyTrip.com (India), and Trip.com (China), are eagerly expanding into services outside of traditional travel, exploring new ways to diversify their offerings.

Increasingly, they are investing in sectors like ticketing services for concerts, wellness services (e.g., medical checkups), goods delivery, and food commerce, aiming to provide a more comprehensive and enriched travel experience for their customers.

Highlight #2

When analyzing the investment strategies of Asia’s top players beyond Online Travel, so including Ground Transport, Aviation, and Hospitality, another clear innovation pattern emerges—one that diverges significantly from the global landscape.?

As detailed in our global Sector Attractiveness report, we categorize all investment targets into four strategic buckets based on the priorities of the investing entities:?

• Raising Operational Efficiency
• Enabling Market Expansion
• Increasing Sustainability Impact
• Enhancing the Digital Consumer Experience.

For Asian corporations, one area is gaining momentum rapidly: Investments in enhancing the digital consumer experience in travel.?

• This year, the proportion of deals in this space is expected to surge from 6% in 2023 to an impressive 18% in 2024—even as the overall number of deals is forecasted to decline.?

• This growth makes the focus on the digital consumer experience 2.5 times higher than the global average in 2024.

Why is this so significant?

And what does it mean for the future of travel in Asia?

This growing emphasis on digital consumer experience is a massive shift that reflects a strategic recognition among Asian corporations that the future of travel will be even more digital, personalized, and seamless, especially among the continent’s mobile-first population.?

The investments being made today are laying the groundwork for smarter, more intuitive travel experiences, where technology plays an integral role in simplifying and enhancing every step of the traveler journey—from booking and check-in to in-trip services and post-travel engagement.

What exactly does this focus on improving the customer experience entail for travelers??

This brings us to Highlight #3.

Highlight #3

To better understand what "enhancing the customer experience" truly means, we conducted a deeper analysis of the sub-segments that have attracted the most corporate investment in Asia.?

• As shown in the chart below, the majority of investments made by Asian corporations in the “Digital Customer Experience” category since 2018 have been focused on specific booking innovations, whether for hotels, flights, or experiences.?
• Close behind are fintech solutions, particularly those related to cashless payment services.?

Together, these two categories account for more than half of all corporate investment dollars directed toward improving the digital customer experience in the travel space.

What does this tell us??

It signals a clear commitment from Asian corporations to work towards a truly seamless travel journey, focusing on integrating services that make booking and payments smoother and more efficient for travelers.?

• This approach is particularly promising in the context of Asia’s thriving travel superapp ecosystem—where platforms offer a variety of travel-related services within one integrated app.?
• As we’ve shown in previous analyses, this superapp model is already well-established across industries in Asia, and it’s increasingly gaining momentum in the travel sector.

But what are some concrete examples of how these investments are translating into real-world innovations that enhance the mobile travel experience??

Here are two standout examples:

1. JR East’s Investment in iKasa

Japan’s railway giant JR East Residential Service Co,.Ltd , through its corporate venture capital arm, has invested in the umbrella-sharing startup iKasa .

This app allows users to rent umbrellas from various locations, such as train stations and shopping centers, and return them at any designated spot.

By integrating this service with train travel, passengers can enjoy added convenience during unexpected rain showers post-arrival without the need to purchase or carry umbrellas.?

Not only does this enhance the traveler experience by offering a practical solution, but it also contributes to sustainability by reducing the environmental impact of disposable umbrellas, which are frequently discarded in Japan.

2. EaseMyTrip’s Acquisition of CheQin

India’s leading OTA, EaseMyTrip.com , has recently acquired a majority stake in Futurise , an innovative hotel booking app that allows users to negotiate real-time deals on accommodations through a dynamic bidding process.?

This acquisition is a strategic move to tap into a growing market for price-sensitive travelers seeking flexibility and value.

• CheQin’s unique model connects travelers directly with hoteliers, enabling real-time bidding to ensure customers secure the best possible rates.?
• By integrating CheQin’s competitive pricing structure into its existing platform, EaseMyTrip is expected to significantly enhance its hotel booking services, providing greater value for both travelers and hoteliers.?

Notably, the platform goes beyond pricing by offering additional features that cater to personalization.?

• Users can specify preferences such as early check-in times or short stays, including stays that last only a few hours.?

• This focus on flexibility and last-minute bookings positions EaseMyTrip to attract budget-conscious travelers who prioritize affordable and adaptable accommodation options.

What's Next?

As we continue to monitor the evolution of these trends, it becomes clear that the Asian travel landscape is expanding beyond traditional boundaries much faster than in the West, with new players from sectors such as social media, finance, and retail making their mark.?

For travel providers, this means increased competition but also exciting opportunities for collaboration and partnership as the lines between industries continue to blur.

Interested in learning more??

Stay tuned for future updates as we track how these cross-industry investments are reshaping the future of Travel and Mobility Tech in Asia and beyond.

For now, please do us a favor and check out the full analysis below.

Read Article

Press Picks?

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SATELLITE WI-FI?– 法航 is the next airline to partner with SpaceX's Starlink to provide ultra-high-speed Wi-Fi on board all its aircraft. From 2025 onwards, the airline will progressively roll out the service for a “ground-like” experience, completely free of charge and available in all travel cabins.

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TRAVEL EXPERIENCES DEEP DIVE?–?A new report, created in collaboration between Skift and 麦肯锡 , examines the world of travel experience—ranging from stadium rock concerts to guided nature hikes to in-home culinary gatherings and everything in between.

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Deal Tracker?

Most Recent Investment Deals

– VC –

Twelve – The US-based carbon transformation-focused cleantech company, aiming to turn CO2 into clean jet fuel, raised $645 million in funding, including $400 million in project equity led by TPG Rise Climate, $200 million in Series C financing, and $45 million in credit facilities. The funds will be used to achieve the company's goal of de-fossilizing manufacturing processes, focusing first on emissions generated by aviation.

Distribusion Technologies – The Berlin-based B2B marketplace connecting ground transportation providers and online travel retailers?raised $80 million in a Series C funding round led by TQ Ventures. Lightrock also participated in the round. The funds will be used to accelerate global expansion and invest in technology for advanced retailing capabilities for its carriers, retailers, and the travelers they serve.

AIRCO - The US-based carbon utilization company raised $69 million in Series B funding led by Avfuel, with participation from Lowercarbon Capital, IQT, Alaska Airlines, and others. The funding will be used to advance its carbon conversion technology and sustainable aviation fuel production.

Pyka – The US-based developer of autonomous electric airplanes designed to make aviation safer, more affordable, and more accessible, raised $40 million through a combination of debt and Series B funding led by Obvious Ventures. The funding will accelerate the company’s growth, enhance domestic manufacturing, and support the development of new capabilities for contested logistics operations.

Point.me?- The US-based provider of points and travel reward search platform, raised $15 million in Series B funding led by Nyca Partners and Citi Ventures, with participation from other notable investors, including Brian Kelly (founder of The Points Guy), Samsung Next, and executives from Meta and Google Flights.?

ELIVAAS - The India-based luxury apartment management startup has secured $5 million in Series A funding led by 3one4 Capital, with participation from Peak XV Partners' Surge and angel investors. The funds will be used to strengthen its tech stack, expand market reach, and scale operations.

SeatBoost – The US-based platform, designed to offer live bidding for flight seat upgrades, received an undisclosed investment from International Airlines Group (IAG). The funds will be used to expand its capabilities and further improve the travel experience for passengers around the world.

-M&A-

Native Places - The UK-based operator of apartments and hotels intended to serve travelers was acquired by NUMA Group, the developer of a travel accommodation platform, for $18.5 million.

Bookingate – The UK-based B2B travel marketplace and technology platform was acquired by HotelRunner, the US-based cloud-based digital marketing and sales platform for hotels and travel agencies, for an undisclosed amount.

Weeva - The developer of a sustainability management tool designed to promote eco-friendly practices, helping hotels and tourism businesses track, measure, and report their sustainable operations- was acquired by Travalyst for an undisclosed amount.