McKinsey analysts on innovation in travel

Historically, travel startups have been underfunded when compared with startups in other sectors. 

According to a new report from Phocuswright and McKinsey, over the past 15 years, the travel and tourism industry received around 1 percent of funding for startups across all industries, yet it contributed more than 10% of global GDP in 2019.

Nevertheless, there are many success stories, with some travel startups that have attracted substantial investments even through the pandemic. 

Of course, the recent collapse of Silicon Valley Bank and issues at other financial institutions raise new questions about the outlook for startup funding.

To get an understanding of where there are opportunities for travel startups and what investors are looking for, PhocusWire editor in chief Mitra Sorrells spoke to McKinsey partner Nina Wittkamp and associate partner Evgeni Kochman.

The two share data from the recent report and outline the five themes shaping trends in travel startup funding.

Watch the full discussion below.

*This interview was recorded prior to the collapse of Silicon Valley Bank.