Travel Megatrends 2018: Mergers and Acquisitions Focus on Strategic Innovation
Photo Credit: Travel technology companies increasingly get creative with strategic investments in emerging technology. They're looking more at internalizing innovation and startup culture, rather than merely trying to bet on the right horse as a financial diversification move. Skift / Patricia Mafra
Skift Take
The smartest travel companies are beginning to buy startups that may not be central to their main businesses or help them consolidate market share, but could boost the innovation metabolism of their motherships.
Skift Megatrends 2018
In January 2018 released our annual travel industry trends forecast, Skift Megatrends 2018. You can read about each of the trends on Skift, or download a copy of our magazine here.When travel companies go shopping, they often have market consolidation in mind. But lately, some businesses have been using acquisitions and equity investments as a strategic learning opportunity.
Often the additional goal now is to try to cross-pollinate a startup's culture and innovations with the operations and thinking of corporate headquarters.
“I'm seeing travel companies increasingly get creative with strategic investments in emerging technology,” said Jen Ford, chief financial officer of vacation rental property management tech startup TurnKey and a former key mergers and acquisitions negotiator for HomeAway. “They’re creating dedicated venture capital funds that are designed to create deep partnerships with private companies."
"This approach allows the investing companies to tap into and rapidly deploy innovative products and services that delight their customers while maintaining focus on their core competencies.”
