Why 2021 Is the Year of the Travel IPO

More travel companies are on track to go public this year than in any other year in recent memory. The activity has surpassed most forecasts made during the pandemic, even accounting for how many travel companies said in January that they were considering initial public offerings, or (IPOs).

One factor amping up activity has been the sudden popularity of merging with blank check companies, also known as "special-purpose acquisition companies, or SPACs.

This year a dozen travel companies have already gone public or are expected to go public. That statement uses a classic definition of "travel," covering suppliers, such as airlines and vacation lodging providers — plus the tech vendors and aggregators that depend on the travel industry. Up to seven more travel companies may announce plans to go public before year-end.

Decisive historical statements are elusive, though. Analysts don't share a settled definition of "travel company." Some track more all-encompassing categories of "transportation and hospitality," which can include charter jet operators, flying taxi makers, ride-hailing firms, and event management software makers. Including those types of businesses adds another dozen or so companies to this year's list.

Travel's Push to Public

The year's largest initial public offering in travel so far has been Clear Secure's. The airport screening and biometric identity company raised net proceeds of about $409 million in June. The stock market now values the company at about $3.5 billion.

The second-largest travel IPO so far has been by Frontier Group Holdings, the parent of U.S. budget airline Frontier. It went public in April, raising $266 million. The market currently values the airline at about $3.2 billion.

Travel companies on track to go public this year — listed in the order of expected valuation size — include Vacasa, Turo, Sonder, HomeToGo, Inspirato, HotelPlanner, Membership Collective Group (Soho House), RateGain, and Ixigo.

Travel IPOs Announced in 2021, Ranked by Potential Net Proceeds

CompanyListing typeTimingProceeds*SonderSPACLikely by year-endUp to $650 millionVacasaSPACLikely by year-end$485 millionTuroIPOLikely by year-endConfidentialMembership CollectiveIPOJuly$420 millionClear SecureIPOJune$409 millionFrontier AirlinesIPOApril$266 millionInspiratoSPACLikely by year-end$260 millionHomeToGoSPACLikely by OctoberTo be determinedSun CountryIPOMarch$218 mi