Navigating Winds of Change
As the head of investments for a travel-focused fund, I’m experiencing first-hand the turbulent climate facing startups right now. When the economy starts to falter, travel is usually the first industry to suffer — it’s one of the largest discretionary spend items of corporations and people alike and it’s relatively easy to cut when times are tough or it feels unsafe.
During times like this, entrepreneurial success relies on a startup’s ability to quickly adapt to the changing environment — pivot operations as needed, introduce new offerings, and/or recognize unique marketing opportunities. Here’s a quick look at how some of JetBlue Technology Ventures’ portfolio companies have remained resilient or grown in the face of this global pandemic. We hope there is some inspiration and insight for other startups navigating this time.
Rewarding social distancing
As COVID-19 cases spiked, many states implemented shelter-in-place orders to minimize the spread of the virus. In a world where being on the move is consistently incentivized (think: wearable fitness trackers, loyalty points for traveling), how do you revamp rewards systems to remain relevant?
The Miles app is a platform that rewards users for all their commute and travel, tiered according to method of transportation. A few months ago, the startup increased reward levels for more socially-distant modes of transportation — like walking versus taking public transit — to promote state guidelines and also created a unique “Staying Home” rewards category featuring brand offerings to help folks stay safe, fit, and entertained. This quick-thinking has allowed the app’s users to remain active and engaged even when traditional travel has been at an all-time low.
“Can you see my screen?”
In-person meetings and events went virtual almost overnight, and will continue to serve as important means of networking and education for the foreseeable future.
While Bizly began as a solution to streamline the planning process for in-person events, the startup recently added the capability to plan and conduct virtual or hybrid events on their platform as well. The tool is compatible with typical video conferencing technology, such as Zoom or Microsoft Teams, and also offers guidance to planners on increasing security settings and best practices for communication with attendees.
A new era of contactless
Contactless and touchless service has gone from a “nice-to-have” for the customer experience to an element that is necessary for the safety and security of customers. For the travel industry, reducing human contact throughout the end-to-end journey will increase people’s willingness to travel again.
Unico.aero offers a luggage-free experience for travelers through its baggage management platform. Their service already eliminated several touchpoints associated with transporting luggage during air travel, but now the startup recently launched a remote bag check so customers can avoid traditional queues and crowds during peak travel times. The result will help further provide a hassle-free airport experience.
Weathering the fight against COVID-19
As more people consistently turn to outdoor activities for entertainment, knowing your local weather patterns seems especially important right now. But weather data is also a key component to advancing our understanding of COVID-19.
That’s exactly why ClimaCell, a micro-weather intelligence platform and forecasting app, published a Coronavirus Environmental Resource Data Center that aggregates the latest research, events, and tools to help the public better understand the connection between COVID-19 and environmental variables. The company has provided its API for free to researchers and is partnering with several organizations to provide data in the monitoring and controlling of spread as it relates to weather.
Soaring above flight disruptions
When flight demand suddenly bottomed out, airlines had fewer predictors and indicators to go on to build their schedules.
Volantio offers a SmartAlerts platform that allows individuals to set flight alerts and receive messages that match their preferences. As the pandemic became more widespread, the data collected via SmartAlerts proved to be a strong bellwether for airlines to understand traveler sentiment. Airline customers could use this information to track — on a route by route basis — when customers were looking to travel and then plan routes accordingly. As a result, interest in SmartAlerts has skyrocketed over the past few months.
Change your plans in stride
Trip cancellations increased dramatically due to the pandemic, with many customers left questioning the status of a refund or rebooking.
Travelstride is a marketplace that aggregates multi-day and multi-destination packaged trips. As the pandemic became more widespread, the startup focused on building long-term relationships and trust with customers versus near-term sales. This included enabling searchability features for insurance, safety, and cancellation policies to help eliminate customers’ stress associated with disrupted travel plans. The startup has also been providing real-time status updates on its network of tour operators to help keep customers abreast of any new changes.
Change is the only constant
This time has proven difficult for many, however instances of adaptability showcase some of the best traits of the startup community as a whole. If you can master the challenge of survival, the lessons are there for you to capture and build a stronger company for the future.
The travel industry will continue to persevere and come out more prepared for the unexpected than ever before. Our JTV team remains firm believers in the impact of innovation and we’ll continue to look for the ideas and entrepreneurs that can help make our industry stronger and more resilient.
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