Insights on the Travel & Hospitality Tech space
Key takeaways in this edition include:
- The European market remains fragmented, with consolidators driving a fast-paced M&A environment. Vertical software players like Access Group, Zucchetti, and Septeo continue pursuing acquisitions both within and beyond their core regions, alongside a growing number of financial investors
- In previous editions, AI was top of mind but early in adoption. That has now shifted. AI adoption and readiness are key factors influencing investor interest in travel and hospitality tech. You will see this in our record of recent fundraising activity, where the purpose of recent rounds has decisively pivoted to AI investment rather than supporting go to market strategy
- Open APIs and seamless integrations between systems of record (whether that be a PMS or POS) and point solutions have long been the standard. We now see large platforms acquiring partner point solution products that have proven successful (e.g. Mews’ acquisition of Flexkeeping). This effectively creates proof points on potential cross selling synergies before a transaction
- Beyond increased acquirer activity, established, founder-led companies are evaluating whether to buy or be bought. Caught between well-capitalised global players with strong product investments and agile newcomers with no technical debt, regional leaders are seeking scale to defend and grow their existing market positions
- Underlying market sentiment continues to be bifurcated between the haves and have-not. B2B2C and B2C models continue to be challenged by investors in an environment characterised by mixed consumer sentiment
- Finally, the well publicised IPO of HBX Group in Spain has given financial investors a data point on public equity market interest in the sector, and ultimately a yard stick for potential valuations
