Despite the steady diet of doom and gloom about:  travel, online travel, start-ups and the economy in general, there is some good news for online travel start-ups.  For good teams solving real problems with stable investors, demonstrating a credible way to generate revenue and gaining some traction on customer adoption, there has been funding available to hit their next set of business milestones.  Rumors indicate (Yapta & PlanetEye) and facts reveal (VibeAgent) that at least three travel start-ups have received financing in the last few months.

Vibeagent recently received $3M in funding

In November, Vibeagent a hotel search engine announced they received $3M in Series A investment capital from a group of executive investors. This follows an angel round from Trip Davis of TRX, Inc. Davis also participated in the Series A investment round and sits on their board.

Rumors abound that two other companies, Yapta and PlanetEye, also just received bridge financing from their existing investors.

PlanetEye is rumored to have received a funding round

PlanetEye, a beautiful site with stunning photography and well-written content offers travelers the opportunity to discover new places to go and stay. Their “Travel Pack” allows travel planners to clip photos, hotels and restaurants during their search process to facilitate their trip planning. The site succeeds in delivering inspirational travel options and delivering a better way to organize online travel plans.

Yapta has also been said to have received funding

Yapta offers a simple interface to:  find the best flights, track prices, receive price drop alerts and help you get refunds if necessary.  They say the average Yapta member saves $227.00.  This is compelling information during a time when everyone wants to save money.  They recently announced a frequent flyer award tracking program for those travelers who want to get the most flights using the lowest amount of frequent flyer points. Yapta seems poised to succeed in this economy.

These three companies received funding despite the tough economic times.  Why? Because people may travel less, but they will continue to travel. After all, the millions of people who are still employed dream of escaping the cold, taking their kids to Grandma, finding new adventures or just relaxing.

What lessons might we draw from these recent financings? First, stable, experienced investors are critical for internal bridge fundraising or to support follow-on external fundraising. Second, travel companies with lead generation business models are well positioned as online travel agencies and suppliers will continue to buy leads to fill their (increasingly empty) rooms and seats.  Third, running lean is not just good for business; it’s also boosts investor confidence that the team is scrappy enough to succeed.

What does the future hold for funding of online travel companies? It is true as Jeremy Liew suggested in a recent post that angel investing may be less than in previous years, but VCs do have existing capital to invest in promising firms. Look for bigger funding rounds for start-ups with strong customer traction because VCs will flock to quality and VCs will want to offer enough funding to insure success during the recession. Why will they look for customer traction rather than revenue growth? Because monetization for online lead generation businesses is relatively simple, but cost-effectively growing customer usage is a challenge.

Bottom line: Start-ups need to be solving real problems, be scrappy and be even more focused on customer acquisition, but there is funding available for those that can deliver.

Related Posts:

How bad is It for a start-ups seeking funding

Good a time as any for start-ups

VC confidence level takes third-quarter hit

I am constantly wondering what is happening in the travel industry.  I want to stay informed about trends, mergers, acquisitions, closings, deals and general industry news. I rely on industry periodicals like Travel Weekly and HotelMarketing and I look to the blogs.  Here is a list of my favorites from my “reader.”

Elliott.org offers travel information to protect consumers

1. Elliott.org–Written by Christopher Elliott, the blog’s purpose is to inform consumers about their rights, but it also informs me of travel industry trends. His writing is clean, crisp and witty.  Besides the blog, his site also features videos, his columns, and some great headlines like, “Repent, for the end is near! Hotel industry faces its doom.“  A quick scan of the home page will give you an overview of consumer issues and industry trends.  I think his invitation to sign up for an RSS is one of the most intriguing I have seen:

“They don’t want you to click here …Otherwise you might become the travel industry’s worst nightmare: an informed consumer. All the more reason to sign up for my RSS feed or daily e-mail updates. You’ll get the latest travel insights, tips and commentaries.”

T4 by Stephen Joyce

2. T4 Travel & Tourism, Technology & Trends is written by Stephen Joyce, a travel and tourism technology consultant and founder of Rezgo. It  offers a sweeping view of the travel industry and social media and as he says, “share with you some of my experiences as an innovator in this new world of connectivity and build connections for all tourism related businesses both large and small.  He covers industry events, offers site reviews and insights into the industry’s future.  Because he is both a consultant, a blogger and an entrepreneur, he offers a breadth of information on travel. Well worth following.

Jens Thraenhart

3. Tourism Internet Marketing Jens is a rising force in the travel industry and this description from his blog describes him well, “Jens Thraenhart is a globaI tourism and hotel strategist, with a focus on leveraging new media and emerging technologies, who has been marketing travel online since 1995.” He seems to be everywhere, doing all sorts of wonderful things.  I suggest you follow his Tourism Internet Marketing blog because that may be the best way to keep track of him and stay up-to-date on the industry. Claude Benard and Chris Clarke also contribute to this dynamic blog. Of note, Jens also seems to be good at identifying the new start-ups worth watching.

4.  The B.O.O.T- I discovered this blog just before he wrote about our private beta launch.  Tim writes from an insider perspective, (he works at Orbitz) and offers insights into all aspects of the travel industry or as he describes it, “puts the boot into the highs and lows of the online travel business (with an Australasian/Asian bias) with some blogging about consuming and loving travel thrown in.”  His recent post about twitter and the war on Mumbai is just one example of hst style and his insightful blogging.  He does need a logo though.

T-List member invitation

5.  Tips From the T-list–this is the best source of travel info:

“Tips from the T-List brings together the collective intelligence of dozens of influential travel industry bloggers from around the World. The blogs and the authors that are represented in this community are recognized online resources; they are the people the industry turns to for advice, recommendations, tips, and insider knowledge. By sharing their experience with you, these authors are providing you with an opportunity to embrace e-tourism in a new way. Our hope is that this community will provide inspiration and insights that help e-tourism efforts flourish.” They know who they are. Become a member now! UpTake is.

FareCompare

6. Rick Seaney, CEO of FareCompare.com says he discusses helpful travel tips but he really keeps me up to date on the airline industry’s ups and downs.  His short posts feature witty imagery, flowing copy and snippets of helpful information.  Airline news at its best.  Good examples of the type of information include recent posts about Virgin Airs thwarted attempts to get a gate or two at O’Hare and a post about airline scales being out of whack.

Hotel I Tour

7. Claude Benard from Hotel I Tour was one of the first bloggers I met via blogging. He has been very helpful to UpTake. He also covers the gamut of industry news including: etourism, travel 2.0, tourism, the hotel industry and travel technology. I especially like his interviews, analysis and tips & tips sections. You may be familiar with Claude, he  previously wrote for Les Explorers. He knows travel and offers a European perspective to the travel blogosphere.

Happy Hotelier

8.  Happy Hotelier is written by the happy hotelier himself, owner of the luxury hotel, Haagschesuites. This isn’t so much about the travel industry news nuts and bolts, but it is an entertaining blog celebrating travel written from a hotel owner’s perspective. As he say, “a Happy Hotelier with a keen interest in new developments in luxury travel, luxury hotels, luxury B&B’s, architecture, design, travel- and hotel gadgets, guest satisfaction, web design and web promotion of travel sites and hotel- and accommodation sites.” I think his blogroll is one of the best in the industry.  He is tapped into the travel and social media world.  He exemplifies how to promote a hotel through social media.  Based on his blog posts, I would bet his hotel offers an incredible experience.

Tourism Tide, a new favorite

9. Tourism Tide This is a recent favorite. I met Phil Caines at PhocusWright, he works at Rezgo, and discovered his blog. Phil describes his blog, “Tracking the ways consumers and businesses interact with Internet based travel technology. This blog is focused on marketing innovations, interviews and new wave (2.0+) solutions within the Tourism and Travel Industry. My favorite title is ‘All Hail the Google Overlords” maybe because that is how I feel about the awesome Google. It is a good post, too.

Travolution for another take on travel

10. Travolution is an great travel information site.  Their blog offers “More content from the Travolution team, including random commentary, interesting stuff we’ve seen elsewhere and our usual sideways look at the travel industry.”  I especially like the irreverent tone.  I usually stop by the site for news, too. The blog and the site are worth tracking.

11. Finally, just a reminder there are a couple of news sources you must subscribe to via email. I rely them on daily for up to date news on the travel industry, they are  Hotel internet Marketing and Travel Weekly.  Sometimes a good old fashioned news source is just what I need for blog fodder.

I realize I have missed some of the top blogs.  I hope you will send me some of your favorites.  We will add them to our blog roll, to our blog widget and I will add them to my reader.

"Passports With Purpose" supports Heifer International

Online travel bloggers want to give back some joy this holiday season and they made it really easy to support a great cause, Heifer International.  Heifer International is one of my favorite causes ever. Through this non-profit, for just a few dollars, you and I can transform lives and remove them from the worst poverty.  Here is a quick overview from Heifer International–take a few moments to soak in what they want to accomplish, because what they want to do is a good, good thing:

One goat can end hunger for a family

Heifer envisions…
A world of communities living together in peace and equitably sharing the resources of a healthy planet. (just sit for a minute and think about that statement, it is a thing of great beauty)

Heifer International supports hundreds of communities worldwide

Heifer’s mission is…
To work with communities to end hunger and poverty and to care for the earth.   I can embrace this mission with every part of me–the best of humanity in one sentence)

Give a little bit to help in a big way

Heifer’s strategy is…
To “pass on the gift.” As people share their animals’ offspring with others – along with their knowledge, resources, and skills – an expanding network of hope, dignity, and self-reliance is created that reaches around the globe.  (an expanding network of hope…just feels good reading that)

A donation means passing happiness onto hundreds of people across communities

Heifer’s History
This simple idea of giving families a source of food rather than short-term relief caught on and has continued for over 60 years. Today, millions of families in 128 countries have been given the gifts of self-reliance and hope.

So how can you help? Just pull out your credit card and participate in your favorite travel bloggers’ new fundraiser:

What: Passports with Purpose – a fundraiser to benefit Heifer International.
Who: The brainchild of Debbie Dubrow of DeliciousBaby, Pam Mandel of Nerd’s Eye View, Michelle Duffy of WanderMom and Beth Whitman of Wanderlust and Lipstick. And an amazing ensemble of TravelBloggers!
When: December 1st- December 29th
How:

• Browse through the list of prizes
• Choose which ones you’d like to win for you or someone else
• Click on the FirstGiving link
• Buy one or more $10 raffle tickets for each prize you want by December 29th (11:59 pm PST)

I suggest you pull out your credit card (yes, do it now, so you don’t forget, I already reminded you once) and go wild!  Give them away as Hannukah, Kwanzaa and Christmas presents.  It is a  great corporate gift (do you really want that scarf with a company logo or do you want to feed a family this year). How about a stocking stuffer? Or just participate to feel really, really good about something you did this holiday season.

Go ahead, enter, either way you win.

UpTake donated a $100 American Express gift certificate to the event.  You can have a little splurge, have a little more fun on your next trip or finish up  your holiday shopping.  Good luck.

Please pass this on…

All photos courtesy of Heifer International.

People who have a healthy skepticism about Twitter, like my wife, have the impression that people on Twitter talk about mundane topics like “I ate a slice of pizza for lunch.”  But in fact, those of us on Twitter know that there is no more popular topic on Twitter…than Twitter itself.

I shared on Twitter that we were planning to use the @UpTake twitter account more in the future.  Many of us at UpTake are already personally on Twitter:  @yenlee @patjenkins @elliottng and others.  But I was hoping to have @UpTake be a shared account between Pat, Steve Yu, and me for more focused Travel Industry information and discussion.

An interesting and spirited conversation then ensued about the corporate use of Twitter with a number of people in the Travel (and general) Social Media space, including:  @NitinK of Software Abstraction Blog, @StephenJoyce of Rezgo, SEKeener of BootsNAll, @ToddLucier of TourismKeys.ca, @nerdseyeview of NerdsEyeView, @chadcat of ZoomProspector, and @chinkerfly (who worked with me on my CNReviews China blog).  This is what is so cool about Twitter…an instant water-cooler discussion with some incredible people distributed across the world.  And yes, like a real water-cooler discussion, plenty of free advice emerged.

Todd Lucier of TourismKeys.ca

@ToddLucier‘s initial tweet reaction to us starting an @UpTake twitter account was a little negative: “Elliot, surely this place is more about people and their ideas than corporate brands.” Todd went further and on a post argued that people should use their own personal name consistently across all Web 2.0 platforms so as to build a consistent Web 2.0 personal brand.

Stephen Joyce of Rezgo and Travel & Tourism Technology Trends Blog

@StephenJoyce weighed in with a tweet that people agreed with:  “I think you and Pat have more impact on the Uptake brand then an Uptake twitter feed. You, Yen, and Pat are the human element.” I totally agree with this, but we also expect to build UpTake into a leading online travel company that transcends individual people.  Also, our corporate culture is totally allergic to the “cult of personality” (perhaps because Yen is Canadian, Stephen and Todd).  So how do you add that personal touch in a way that transcends one person, even the founders?

Sean Keener of BootsNAll Network

Sean Keener tweeted that “Look @ history of goog SERPs as indicator 4 twitter” and then elaborated his idea in a nice video-post on his blog and YouTube:

Sean points out that person-to-person marketing is always the most effective way to get your message out, and that as founder of BootsNAll he has been doing it in independent travel for the last 10 years.  “Nothing beats meeting someone, shaking their hand, and talking about something they love.” Couldn’t agree more.

More great links and resources

I received some great links from Sean, Nitin and others:

1. Search Engine Guide – Jennifer Laycock – Great Examples of Corporate Twitter Use
2. Fast Wonder Blog – Dawn Foster – Using Twitter for Brands or Corporate Identities
3. How to Change The World – Guy Kawasaki – How to Use Twitter as a Twool
4. Web Strategy – Jeremiah Owyang – Why Brands Are Unsuccessful in Twitter
5. Horse Pig Cow – Tara Hunt – Tweeting for Companies 101

These are incredible resources!  A great example of Twitter serving as a social computer.

What’s UpTake going to do?

Well for one, we’re not going to overthink it.  We’re just going to do our best to develop a shared UpTake account that highlights interesting stuff related to the Travel Industry, Travel Technology, Search, and happenings at UpTake.  We’re all going to keep our personal accounts and keep using them as we all want to individually.  And we’re going to heed the advice provided above on keeping it personal and enjoying the process of building relationships with people who care about the same things we do.  That’s it for now!