Skift Take

Several travel companies, such as Preferred Hotels & Resorts and Frankfurt Airport, have used the services of Loyalty Prime, a startup that builds next-generation software for running loyalty programs. Loyalty Prime's new funding is part of a wave of investment that we expect to see in loyalty tech companies.

Series: Startups This Week

Travel Startup Funding This Week

Each week we round up travel startups that have recently received or announced funding. Please email Travel Tech Reporter Justin Dawes at [email protected] if you have funding news.

This week, travel startups announced more than $14 million in funding.

Earlier this week, Skift was first to report that Ayenda, a Colombian budget hotel brand, had raised $8.7 million in Series A funding. Kaszek, Latin America’s largest homegrown venture firm, led the round.

>>Loyalty Prime, which creates enterprise software to run loyalty programs, has raised $5.4 million (€5 million) in Series B funding.

Hi Inov, a venture capital fund, led the round. Other investors included BayBG Bayerische Beteiligungsgesellschaft, Senovo, UVC Partners, and The SaaSgarage). The startup has previously raised about $2 million.

Loyalty Prime builds next-generation loyalty software based on artificial intelligence and run on the cloud.

While not a travel startup, many travel companies use the subscription-based services of the Munich-based company.

For example, Preferred Hotels & Resorts, a marketing network of 650 hotels and luxury residences, used Loyalty Prime to migrate from its non-points based guest benefit program to a points-and-benefit program. The companies say the new program boosted member enrollment by about 74 percent, year-over-year, in the first year.

Another example: Frankfurt Airport parent company Fraport used the startup to help design and implement its rewards platform, where passengers can earn rewards for shopping at the airport’s retail shops.

Loyalty Prime’s commercial partners include Oracle Hospitality and Sabre.

Skift Cheat Sheet:
We define a startup as a company formed to test and build a repeatable and scalable business model. Few companies meet that definition. The rare ones that do often attract venture capital. Their funding rounds come in waves.

Seed capital is money used to start a business, often led by angel investors and friends or family.

Series A financing is typically drawn from venture capitalists. The round aims to help a startup’s founders make sure that their product is something that customers truly want to buy.

Series B financing is mainly about venture capitalist firms helping a company grow faster. These fundraising rounds can assist in recruiting skilled workers and developing cost-effective marketing.

Series C financing is ordinarily about helping a company expand, such as through acquisitions. In addition to VCs, hedge funds, investment banks, and private equity firms often participate.

Series D, E and beyond These mainly mature businesses and the funding round may help a company prepare to go public or be acquired. A variety of types of private investors might participate.

Check out Skift’s list of The Best-Funded Travel Startups.


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Tags: funding, startups, vcroundup

Photo credit: An image of The Sagamore, a property that belongs to Sagamore Preferred Hotels Group. Loyalty Prime, a startup that creates enterprise software to run loyalty programs, has raised $5.4 million (€5 million) in Series B funding, and the service is used by Preferred Hotels Group. Preferred Hotels Group

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