Travel startups announced over $218 million funding in almost entirely consumer facing companies this week (reference).
Over the past 5 years, over $600 million has been raised by consumer facing holiday rental startups. However, only $10 million has been raised from supporting services like websites, channels, management systems & payments (reference).
Huge industry growth
The industry is predicted to grow by $70 billion dollars by 2019, valuing the total market at $170 billion (reference).
No supporting services?
In an industry with such astonishing growth, only 1.6% of funds have gone to B2B companies providing support services. This expansion is putting a colossal strain on asset managers (homeowners & holiday rental agents) and is proving to be an incredible opportunity.
"A closer look exposes opportunities to support this sprouting marketplace. Managers & owners have increasing needs (websites, PMS, payments, re-marketng etc)" — VRMintel, 2013 (reference)
Only focused on consumers
Listing sites like Airbnb, who’ve taken a large majority of funding, are only focusing on consumers. They’re raising commissions, adding service fees, reducing communication & imposing unfair cancellation policies. Quote:
They’re "almost entirely focussed on the end customer and almost not at all ?focussed on the poor sod who owns the property” — Owner, United Kingdom (reference)
Huge disruptions & leaky buckets
In a market which is disrupting itself, we're positioned to patch the expanding leaky bucket that is the vacation rental industry.
Learn more about Rentivo's crowdfunding campaign here.