McKinsey analysts on investment patterns in travel

Millions of dollars of investments flow into travel startups each year.

Companies focused on hospitality, transportation and the travel booking experience have held the top three spots for funding in the last several years, but in recent years two other sectors have come into the view of investors: business travel and the in-trip experience.

McKinsey partner Nina Wittkamp and associate partner Evgeni Kochman say this shift is an indication that those making decisions about where to invest see opportunities for innovation in these sectors.

“And it’s interesting that we see this at a time when business travel was close to zero during the pandemic,” Wittkamp said.

“But I think it also shows how investors are seeing through some of these cycles and are looking at overall maturity level or innovation potential in these sectors regardless of economic or sector performance in one or two specific years, which I think is quite encouraging.”

The findings are included in a report produced by McKinsey in collaboration with Phocuswright.

In a conversation with PhocusWire editor in chief Mitra Sorrells to discuss the findings, Wittkamp and Kochman explain some of the patterns they are seeing for funding by sector, such as hospitality, aviation and mobility, and by investor type – venture capital, private equity, corporate investment and public funding. 

Watch the full discussion below.