The Fickle Startup: When to Chase and When to Flee From a Category Leader
Skift Take
Given the headlines, while Rome2Rio, Captain Train and Loco2 are trying to get the message out that they are just as hot as travel-startup peer GoEuro, in contrast Hot Hotels is getting the word out that it will avoid some of the business model pitfalls of HotelTonight.
When the Priceline Group announced in 2012 it would acquire Kayak for $1.8 billion that had to be welcome news for rival Trivago, which saw Expedia Inc. take a controlling stake in it a few months later.
Editor's Note: In our Skift Startup Stories series, we document travel startup issues, solutions, and lessons from a variety of angles, hoping to shed light on what separates the winners from the losers. You can read all the stories here.
Likewise, when Airbnb raises another $1.5 billion in funding that becomes an endorsement of the sector and the raise could have a trickle-down effect on competitors' money-raising efforts.
So it goes in the travel startup sector —any startup sector for that matter: A big partnership or lucrative funding deal for the category leader or major player has a ripple effect.
But the converse may hold true
