The unavoidable principles for an emerging travel business to be successful are three: that the idea solves a real problem in the travel market, that the business model works and that it is scalable. Are you planning to start a business in the travel industry and are not sure how to meet these goals? The following 4 key techniques should help you create a successful travel startup!
Search for an unexplored market niche
Setting foot in the right market niche is the first step for a company to have a future. For this, it is not always necessary to look for an idea that covers a general need, that is, a product with a great demand. Many successful startups have found small niches that were barely covered. This is the case of the dotGIS company, which collects and analyzes data that it then combines and makes accessible to its customers through smart maps. In a short time, the income has multiplied. “The success has come after giving usefulness to the data. With an analysis, many companies can improve their investment or even prevent their closure. Over time, the clients realize that they need such a service. Choose the niche that is unlike the others in the travel industry. For example, in the case of the Greek TravelTellers, they created personalized and tailor-made travel tours, which is a market that is still fresh. It is also essential to have a powerful technological base — key to growing faster and faster in a short time.
Always arrive on time
On the other hand, the globalization of the travel markets that is causing electronic commerce (another characteristic that defines these emerging companies) is an opportunity to reach more people. It’s also the origin of the number of competitors growing. Being too late is one of the reasons that leads to the closure of many companies. One option is to periodically review how the travel market moves and the advances you can incorporate to make your company stronger compared to the rest.
In addition, the service must be accessible and easy to use. This is something vital. For example, in the development of travel apps: if that design (known as the user experience) is complicated or, simply, is not understandable by the user, this will prevent him from using the application and, sooner or later, will uninstall it.
Get financing to generate income
Knowing the different ways to finance and choose the right one can be key so that a project does not have problems in the future. Normally, the first financing is made by the founders themselves or their relatives and acquaintances (these investors are known as Family and Friends). However, in order to grow, larger investments are necessary. For this, the figure of startup accelerators, entities with aid programs for emerging companies that usually include financing, training and contacts, is essential.
Being part of an accelerator can not only increase your financing, but also provide you with the basic ideas to know how to grow your startup in the future and that the business idea is scalable.
Make your idea scalable
The famous English investor and programmer Paul Graham warns that no company can be called startup forever. What defines these emerging companies, he says, is innovation and that their fundamental pillar is growth. A startup is a company designed to grow fast. You don’t need to work in technology or take risk funds. To grow quickly you need to do something you can sell to a large market. How do you build a scalable business?
The specialist and CEO of the non-profit corporation Brooklyn Navy Yard, David Ehrenber, pointed out in 2014 in Forbes magazine three categories of metrics (sales, customers and financial) on which an entrepreneur must work to grow. These include: measuring how sales develop over time to know seasonal forecasts; know how much customers grow and if they are loyal; know what the pace of spending is or when it will start to make a profit; extract the gross margins typical of the startup sector to know if you are spending too much for the business to scale.
