Travel Tech Essentialist #153: Cost of Innovation

Some of the stories in this issue touch on the cost of innovation—whether it’s the price of success, the consequences of failure, or the uncertain outcomes of new initiatives. I hope you enjoy it.

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0. The most clicked link in the previous newsletter

The most clicked link in Travel Tech Essentialist #152 was the Thrillist travel survey.

1. The New MVP: Meme Viable Problem

We sometimes overthink the Minimum Viable Product (MVP) process. Jaryd Hermann introduces a faster, simpler alternative: the "Meme Viable Problem" (MVP). Instead of building a product or landing page, capture the problem in a meme and share it within relevant communities. If the meme resonates, the problem is real. If not, you've saved time and resources while gaining valuable insights. His 3-Step playbook:

• Describe the Problem: Create a meme that clearly captures the issue.

• Identify the Audience: Find relevant communities where the problem exists.

• Test & Iterate: Share the meme, observe reactions, and refine your approach.

This method leverages memes' cultural relevance to validate ideas quickly and cost-effectively before investing in a traditional MVP. Read + How They Grow (or here for a non-paywalled version)

This meme comes from a 1921 cartoon, often considered the first meme. Source: How They Grow

2. Suddenly Obvious: AI Voice Assistants for hotels

This guest post by Juanjo Rodríguez, founder and CEO of The Hotels Network, explores how AI voice assistants—with their unfair advantages of real-time data access, seamless learning and adaptability, 24/7 availability, and instant multilingual support—are revolutionizing guest experiences. Juanjo's insights reveal that the future of hotel service powered by AI is ready to be implemented today. Listen to a demo on the image below.

3. The cost of extraordinary success

I managed work-life balance very poorly, but I am really proud of what I did. We would not have pulled it off if I had just put in 40 hours a week. — Brian Halligan (HubSpot's co-founder and former CEO)

"Google decided that work-life balance, going home early, and working from home were more important than winning. The reason startups work is because the people work like hell.” — Eric Schmidt (former Google CEO)

Schmidt’s recent comments received widespread criticism, leading him to apologize and request Stanford to take down the video of his talk (you can still find it here). Despite the backlash, both Schmidt and Halligan’s remarks underscore a hard truth: extraordinary results demand extraordinary effort and commitment, and being together in person can drive success in ways that remote work often can’t match.

4. Untapped potential in hospitality subscriptions

Hospitality companies are turning to subscriptions as a new way to build customer loyalty and offer unique experiences. Programs like CitizenM's mycitizenM+ (launched in 2022), Ennismore's Dis-loyalty (2023), and Inspirato Pass (2019) provide personalized perks and exclusive benefits, appealing to travelers who might want more than standard loyalty programs. We're still in the early stages, but these programs hint at a shift in how hospitality brands can engage with some of their most dedicated customers. Read + PhocusWire.

5. Wizz Air’s subscription move sparks industry debate

As I wrote in the last newsletter, Wizz Air launched Europe’s first all-you-can-fly subscription in partnership with subscription specialist Caravelo. For €499 / year, subscribers can book flights within 72 hours of departure. The response from the media and industry ranged from aggressively negative (Ryanair CEO Michael O’Leary dismissed it as a marketing scam) to neutral and skeptical. In response to the debate, Caravelo cofounder JoseLuis Vilar wrote a post emphasizing how Wizz Air is redefining loyalty through an innovative offering, applauding the airline’s bold move to make air travel more accessible and flexible.

6. What do you think?

I would love to get your input on how you see the future of subscription-based travel models:

7. Sober trend

Here’s some surprising data, at least for me. According to Simon-Kucher’s report, What’s Driving Beverage Trends in 2024, consumers across all demographics are choosing healthier drinks and cutting back on alcohol. This shift is reflected in the growing demand for non-alcoholic beverages. Fact Market Research projects that between 2023 and 2033, the global non-alcoholic market will grow annually by 10.4% for wine, 10% for spirits and 7.2% for beer. Notably, 42% of Gen Z and 31% of Baby Boomers are opting to abstain from alcohol entirely. This trend presents significant opportunities for the hospitality industry to cater to a rapidly expanding market segment, where demand appears to be outpacing supply.

Data from Fact Market Research. Non-Alcoholic Beer report, Non-Alcoholic Wine report, Non-Alcoholic Spirits report

Data from Simon Kucher’s What’s Driving Beverage Trends in 2024

Net Spend Intent = % consumers intending to increase spend - % consumers intending to decrease spend

8. Space travel rescue

In 2014, NASA awarded Boeing $4.2 billion to build Starliner – Zero successful flights thus far.

In 2014, NASA awarded SpaceX $2.6 billion to build Crew Dragon – 13 successful crewed flights thus far. And it’s about to add rescuing Starliner to its list.

Cartoon by Nick Anderson

9. Gilad Berenstein’s 5 Travel Tech Trends

At Virtuoso's Travel Tech Summit, Gilad Berenstein (entrepreneur, investor, and Virtuoso board member) highlighted his five key trends shaping travel tech: New monetization models (like travel subscriptions and financial products), Connected operating systems, Connected trip, AI commoditization, Smart systems. Watch his video presentation here.

10. Fundraising

• Inspirato received $10 million in equity financing, cut its workforce by 15% and named Payam Zamani as its new chairman and CEO.

• Seattle-based Otto, a startup developing an intelligent agent for business travelers, raised $6 million in a seed round led by Madrona Ventures, with the participation of angel investors Erik Blachford (former CEO of Expedia) and Barney Harford (former CEO of Orbitz)

• New York-based Besty AI, an AI-powered messaging service for vacation rentals and hotels, raised $1.5 million in seed funding.

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Are you fundraising?

If you are a startup looking to raise a round (from pre-seed to Series D), I can help (for free). Travel Investor Network is a private platform where I recommend innovative travel startups to investors and innovators. If you’re interested, please start by completing this form.

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Travel Tech Essentialist Job Board

• Modern Adventure | Marketing Manager| Portland Oregon (Remote)

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• Airhelp | Public Relations Manager | Barcelona; Berlin; Gdansk; Krakow

• Despegar | Sr UX Product Designer | Buenos Aires, Argentina

The Travel Tech Essentialist Job Board has great companies hiring for 1177 jobs.

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Mauricio Prieto