Funding & Investment in Travel
Vacation Rentals and Luxury Trips: Startups Raise $106 Million
Short-term rental platforms have not been raising money in 2024 quite as often as last year. But they made a bit of a comeback this week with two niche platforms getting nearly $50 million in funding.
One is a growing platform for renting camper vans — interestingly, a much smaller U.S. competitor shut down in the last year for lack of funding. The other is for renting “handpicked” vacation rentals in Europe, a startup founded by several former Airbnb employees.
Six travel startups announced fundraises in the past week totaling over $100 million.
Indie Campers: $38.1 Million
Indie Campers, a platform for renting RVs and camper vans, has raised $38.1 million (€35 million).
Indico Capital Partners led the round, with support from Cedros Capital and GED Ventures.
The Lisbon-based startup says it rents 7,000 of its own vehicles as well as others owned by individual and professional hosts. The vehicles are available in Europe, Oceania, and North America.
The funding will go toward developing the digital platform, adding new products and services, hiring, and expanding globally.
Planned: $35 Million
Planned, a sourcing and booking platform for events, has raised $35 million in series B funding.
Drive Capital led the round, with support from Outsiders Fund and two other undisclosed firms.
The company has now raised a total of $65 million.
Montreal-based Planned said the funding will go toward expanding AI-powered capabilities, global expansion, and adding travel booking capabilities.
Landfolk: $11.2 Million
Landfolk, a vacation rental platform founded by former Airbnb employees, has raised $11.2 million (€10.3 million) in series A funding.
EIFO led the round, with support from SEED Capital and Heartland.
Denmark-based Landfolk says it helps owners rent their vacations homes during the majority of the year when they normally would sit empty. The company says there are 1.3 million vacation homes in northern Europe, and 85% of them are unused for an average of 300 days per year.
The startup has more than 3,000 homes in its portfolio in Denmark, Norway, Germany, and Sweden. The tech platform includes connections with cleaning companies so that owners can automate housekeeping.
The funding will go toward expanding into other European markets, improving product automation, and increasing marketing.
Namma Yatri: $11 Million
Moving Tech Innovations, the startup behind Indian mobility apps Namma Yatri and Yatri Sathi, has raised a pre-series A funding round of $11 million.
Blume Ventures and Antler co-led the round, with support from Google and other investors.
The Namma Yatri app allows consumers to book rides with auto rickshaws, taxis, and public transport. It’s available in several Indian cities including Bengaluru and Delhi. Yatri Sathi, an app based on the same model, is managed by the West Bengal government for consumers in that region.
Rather than taking a cut of each ride price, the company charges a fee to drivers: 90 Indian rupees ($1.07) per day for the unlimited plan, and they are only charged for the day if they complete at least one ride. Riders pay drivers directly for the service.
The company says this model keeps prices down for all parties, as compared to other rideshare apps.
Essentialist: $10 Million
Essentialist, a members-only travel agency focused on luxury trips, has raised $10 million in series A funding.
IRIS Ventures led the round, with support from a group of angel investors.
Spain-based Essentialist says it offers travel packages for nearly 1,000 destinations worldwide. The startup said it has a network of more than 200 travel and lifestyle editors that review and update 2,500 recommendations on an ongoing basis.
The annual membership fee is $2,600 per household, according to the startup’s website. The company also offers corporate memberships.
The funding will go toward marketing, product curation, strengthening the tech platform, and growing its consumer and business-to-business products.
TurnStay: $300,000
TurnStay, a payments platform for travel companies in Africa, has raised $300,000 (5.4 million South African rands).
The investment comes from DFS Lab and DCG.
South Africa-based TurnStay says its platform is able transfer a foreign customer’s payment to the African travel company in a way that minimizes transaction fees, using various features including determining the least expensive intermediaries for each individual transaction. Clients can also embed the TurnStay product on their own websites, meant to improve the payment experience and increase direct bookings.
The startup said payments fees can be much higher for African businesses, especially when an online travel agency is involved. The company says its product has reduced costs by 70% for some clients.
“The average merchant spends 12% of revenue on getting paid — often, this can be the difference between making a profit or a loss and dramatically affects the viability of many businesses in a sector that employs over 6 million people in Africa,” said James Hedley, TurnStay co-founder, in a statement.
Company | Stage | Lead | Raise |
---|---|---|---|
Indie Campers | Unspecified | Indico Capital Partners | $38.1 million |
Planned | Series B | Drive Capital | $35 million |
Landfolk | Series A | EIFO | $11.2 million |
Namma Yatri | Pre-Series A | Blume Ventures, Antler | $11 million |
Essentialist | Series A | IRIS Ventures | $10 million |
TurnStay | Unspecified | DFS Lab, DCG | $300,000 |
Skift Cheat Sheet
Seed capital is money used to start a business, often led by angel investors and friends or family.
Series A financing is typically drawn from venture capitalists. The round aims to help a startup’s founders make sure that their product is something that customers truly want to buy.
Series B financing is mainly about venture capitalist firms helping a company grow faster. These fundraising rounds can assist in recruiting skilled workers and developing cost-effective marketing.
Series C financing is ordinarily about helping a company expand, such as through acquisitions. In addition to VCs, hedge funds, investment banks, and private equity firms often participate.
Series D, E, and, beyond These mainly mature businesses and the funding round may help a company prepare to go public or be acquired. A variety of types of private investors might participate.
Funding & Investment in Travel
Tourism Ministry issues 13 notices in nationwide tourism industry crackdown
PUTRAJAYA: The Tourism, Arts and Culture Ministry has issued 13 notices for various offences during 22 enforcement operations conducted nationwide in the first two weeks of this month.
The Tourism, Arts and Culture Ministry, in a statement, said that the enforcement operations involved inspections of 180 vehicles, 30 tourism companies, four accommodation premises, and 33 tour guides at several key locations.
It added that inspections were also conducted on entities suspected of operating tourism businesses without valid licences in Perak, based on public tip-offs.
“If convicted, the parties involved can face a maximum fine of RM500,000, imprisonment of up to 10 years, or both, under the Tourism Industry Act 1992 (Act 482),” it said.
The ministry also reminded individuals or companies providing tourism services, including transportation, accommodation, or the organisation of tourism activities, either physically or online, to immediately apply for a licence at the nearest state Tourism, Arts and Culture Ministry office to avoid strict legal action.
Additionally, the ministry said it will continue strengthening strategic cooperation with enforcement agencies such as the Road Transport Department, police, National Anti-Drug Agency, and Malaysian Maritime Enforcement Agency to ensure full compliance with tourism-related laws.
The ministry also welcomed cooperation from the public and industry players to report any tourism activities suspected of violating regulations through the Public Complaints Management System (SISPAA) at https://Tourism, Arts and Culture Ministry.spab.gov.my/eApps/system/index.do. – Bernama
Funding & Investment in Travel
Long queues at Malaysia’s checkpoints after country’s worst breakdown in autogates affecting foreign travellers
SINGAPORE: Long queues are taking place at major immigration checkpoints in Malaysia on Saturday (Jul 19) after it reportedly suffered the country’s worst-ever breakdown in the autogate system since Friday noon.
The Star reported that tens of thousands of foreigners were affected, involving more than 200 autogates across the country. However, Malaysian passport holders were able to use the autogates with no issues.
Kuala Lumpur International Airport Terminal 1 and 2, as well as Johor’s Bangunan Sultan Iskandar (BSI) Customs, Immigration and Quarantine complex and Sultan Abu Bakar CIQ (KSAB) were among the entry points affected.
Funding & Investment in Travel
The pretty UK seaside town rammed full of independent shops | UK | News
Salcombe is full of independent shops and tourism is a huge part of the economy (Image: Jonathan Buckmaster)
In Salcombe, everyone is proud to call this place home. It’s easy to see why, especially if you visit on a sunny summer’s day when the sun bounces off the turquoise water. But the seaside town is far from a hidden gem. Visitors return to this pretty part of Devon year after year, bringing with them some serious cash.
Tourism is worth a staggering £266 million a year to the South Hams district, according to council research, and it accounts for one in 10 jobs, with almost 4,500 people working in the industry. However, locals have previously expressed frustration at overcrowding in the peak summer season, when the streets become heaving with visitors, and reports say the small community of 2,000 swells to 20,000.
Crowds watching Rocket Week at the yacht club in Salcombe (Image: Jonathan Buckmaster)
Read more: Direct train to beloved UK seaside town returns after being scrapped
Read more: UK seaside town named ‘one of the most colourful places on Earth’
Salcombe Mayor Jasper Evans showed us around the seaside town (Image: Jonathan Buckmaster)
As we wander through the charming streets full of independent shops towards the yacht club where a race is taking place, we begin to realise just how tight-knit the permanent community is.
Friendly faces regularly stop Mayor Jasper Evans for a chat, and he has a wealth of knowledge on all the local businesses; however, he assures us it’s not so tight-knit that outsiders are not welcomed.
Mr Evans tells the Express: “Tourism is really important. The visitor economy is really important for Salcombe. It’s the main part of the economy.”
He takes us to the harbour through more pretty streets where we chat to an RNLI volunteer, who shares a similar feeling.
He smiles as he tells us: “We all joke about ‘bloody tourists’, but you know, that’s our bread and butter. We love them really when you stop to think. People, in general, are most generous.
“The problem is in the winter, it’s naked. Most locals would say it’s kind of nice to have the town back, but you do look forward to the visitors coming.
“Obviously, the economy is important to all of the locals, but it is also nice to see people around the town. It’s nice to see people who appreciate what we do.”
There are plenty of independent shops in Salcombe (Image: Jonathan Buckmaster)
Howard Davies runs the Salcombe Distillery (Image: Jonathan Buckmaster)
It’s a theme we notice throughout the day as we chat to locals who have made businesses that thrive on tourists searching for uniquely Devonian experiences.
From the Salcombe Brewery to the gin distillery, or the many bustling restaurants and cafes serving up fresh seafood, we start to understand that independent businesses are a huge part of Salcombe’s appeal.
We head to Island Street to the Salcombe Distillery, where a gin-making course is taking place as we chat to the co-founder and director, Howard Davies.
He tells us: “I think what the South West does very well is producing very high quality products, be that food and drink, clothing or accessories.
“Often you can get levels of quality from boutique independent local companies that you may not get from a broader multinational organisation.
“I don’t know what you’re like, but when I go away, I love to buy local. There’s something special about it, and you want to support the local market.”
He adds: “I think for a lot of South West communities, ultimately tourism is a really important part of the economy.
“Now, obviously, it brings challenges because you have locals who live here, and it’s trying to get that balance between affordable housing for people who live locally, but you need employment for people who live locally as well.”
Theo Spink says tourism keeps local people in jobs (Image: Jonathan Buckmaster)
As we wander down Island Street, a place full of artisanal local businesses, we chat to Theo Spink, who lives in the area and works at Luscombe Maye estate agents.
She tells us: “A lot of people, including myself, depend on our jobs for the holiday trade, so people are able to live here because there is business to be had. We are all hugely dependent on that holiday trade.”
When I ask if it’s ever overwhelming, she responds: “It can sometimes be, but I think what people need to remember is that it’s just six weeks.
“It’s those state school holidays where it’s crazy. But if it wasn’t that crazy, people wouldn’t make enough money to sustain their businesses year-round.”
When we chat to Mayor Evans about the volume of tourists, he acknowledges: “It’s very concentrated in the summer season and a few other high points in the year.
“We’re trying to diversify here so that the months when the tourists don’t come, we still have economic activity. It’s really important, we have to remember our permanent residents.”
He tells us that Salcombe also has a fishing industry, which is no better exemplified than in our next stop at the Crab Shed, a friendly seafood restaurant where we see an enormous Devonian crab being served up for lunch to a father and daughter.
As we sit on a bench in the sun overlooking the water, owner Emma Langmaid enthuses: “We love tourism, it’s our business. We’ve got a beautiful place to showcase.
“I think it’s incredibly important, it’s important for everything. Our livelihood is down here, so yes it has to happen.”
Emma Langmaid at the Crab Shed, which serves up generous portions of Devonian crab (Image: Jonathan Buckmaster)
Some people who work in traditional industries have more mixed views, as we learn from Mike Wrigley, who works in one of the few remaining boat yards on Island Street.
The artisanal hub used to be full of workshops, metal workers, riggers and engineers, and we’re told nearly all of the residences on the opposite side of the street have been purchased by second homeowners.
He tells us: “It’s swings and roundabouts. Salcombe has been a tourist town for the best part of 100 years, so it is part of how the place ticks.
“It’s not so much the tourism that’s causing the problem, it is the second homes side of things. There are so many second homes now, it is killing the local community in a way.”
He adds: “Even when I started working in this workshop, there was still a reasonable number of people living in this street, but it’s pretty much all gone, there are only one or two now.
“All the boat yards have disappeared, and there are only three of us here now. It was all workshops [but they have gone too].”
However, he appreciates the atmosphere of tourist season.
He said: “In season, it’s nice because there are a lot of people that make the place feel alive again. It’s only really the school holidays, July and August, that it generally just gets too many. You know, the whole place becomes a struggle to live in.”
Mike Wrigley works at one of the few remaining boatyards in the town (Image: Jonathan Buckmaster)
Island Street used to be full of workshops (Image: Jonathan Buckmaster)
We end our trip by visiting the harbour master, who undoubtedly has the best office view in the town, looking straight onto the water.
With a 22-year career under his belt at the harbour, Cameron Sims-Stirling tells us it is one of the area’s biggest trading points.
He says: “Tourism is a huge part of our everyday living, and keeps us in jobs all year around here.
“I think times have changed. I think there definitely was that sort of, oh second home owners and holidaymakers, but I think the penny dropped and we just went, well, none of us would have jobs. With any seaside town, there can be that delicate balance.”
He smiles as he tells us: “On a day like today, try and beat it. It’s epic. That’s why people come here.” We can’t help but agree.
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