There are a lot of wanderlusts in the world and people are ready to pay a handsome amount of money for it. So it is apparent that the scope of travel startups is extensive and ever expanding, keeping in view the number of travellers and travel sites which are increasing day by day. And it has become more profitable in the last years because of the presence of active social media platforms and increase in per capita income. Oyo which was founded by Ritesh Aggrawal has now become the hub of travellers although it faced some funding problems in the initial years, in 2016, Japanese giant invested $90 million in it.
The paving stones
Some common problems which are being faced by these startups such as expansion, fierce competition, low-profit margins, geo-diversity etc. and these problems arise because of a lot of travellers and on the same time lot of travel startups offering the tour at competitive prices.
Every problem has a solution
- Having a global presence can be the best way to counter the problem of expansion, which would make it easier to acquire and attract more customers.
- Concerning the stiff competition, offering some special packages may help in defeating the close competitors.
- Although there is a problem of low-profit-margin in this startup field, it can be countered by keeping the operational costs as low as possible by utilising technology and automation.
- To not to fall behind and to combat lack of options, diversifying the available options by offering people more opportunities to explore will help in countering the problem of geo-diversity.
- The technical backend has to be well maintained and updated.
Expand the profits
Firstly owning an advertising agency may help cut down the costs. Other ideas include having a workforce who specialise in creating the website, logo creation, providing the road maps, statistics, and accounting and also by establishing own flight search engines and more.
Having these solutions at fingertips then the startup will be able to cope up with this competition which is prevailing in the travel industry. Keeping track of the trends using data aggregated internally and from the web as well, will result in improving the travel business as it will not get affected by the challenges.
By Ishaan goyal