Be Ready for Your Super Bowl Moment
This is a guest post by Jose Luis Vilar, co-founder and Chief Product and Technology Officer at Caravelo. Back in July 2021, I wrote about the importance of startups having a strong “Why Now” and asked readers to share examples fitting any of the “Why Now” categories I mentioned. Three years later, I received Jose Luis’ response, which you can read below 🙂.
In the World of Travel Tech, Timing is Everything
Almost three years ago, Travel Tech Essentialist #60, Why Now, adapted Lenny’s framework to the travel sector. The post highlighted five driving forces and pointed out that the “why now” can emerge later through changes in technology, regulation, and people’s behavior or beliefs.
Today’s post doesn’t want to challenge this idea but to support the idea that each idea has its own moment to shine, its “Super Bowl,” a moment where even underdogs can outperform and claim victory. Below is an interpretation of recent changes and companies that fit into this storyline.
COVID-19: A Game-Changing Event
The pandemic fundamentally altered the travel landscape and industry beliefs. For companies like Caravelo, it wasn’t purely a “why now” moment for airlines but rather a “why not” opportunity.
The entire airline industry experienced a hard reset, freeing it from legacy technology and mindsets and enabling innovative solutions to flourish. This reset allowed airlines to break free from outdated systems and practices, pushing them to adopt modern solutions to old problems.
For Caravelo, having a product already in the market enabled us to build a compelling business case. We demonstrated the relevance of recurring revenues and the readiness of our subscription platform. This change in belief reduced our average sales cycle from 267 days to a record 78 days, highlighting the industry’s shift towards faster decision-making and implementation.
Transformative Moments are a Constant
The recent push of IATA’s Resolution 753, which mandates baggage tracking at key points throughout the journey, has pushed airlines to enhance their baggage handling processes. This regulation has facilitated the development and adoption of advanced baggage tracking technologies, including branded tags, which improve tracking accuracy and customer satisfaction by ensuring bags are less likely to be mishandled.
Bob’s TravelTag leverages the growing demand for real-time baggage information and the live tracking capabilities of Bluetooth technology. Passengers have been using Bluetooth trackers like Apple AirTags to track their lost baggage for some time now. However, the lack of integration with airline technology caused frustration among travelers and airlines alike, with some airlines even banning the technology.
Bob saw this as an opportunity and made a significant move by creating airline-branded Bluetooth tags fully integrated into their airline APPs and ecosystem. This plot twist allowed them to turn a challenge into a valuable service that enhances passenger satisfaction and trust in the airline.
Airline Refund Regulations: The Latest Opportunity
Another pivotal moment is the recent change in airline refund regulations announced by the Biden-Harris Administration. This new rule mandates airlines to provide automatic cash refunds for canceled or significantly changed flights, delayed baggage, and undelivered services; a critical shift that opens up vast opportunities for innovative travel tech solutions in this space.
Deal Engine’s automated refund platform is uniquely positioned to capitalize on this change, showcasing the importance of agility and foresight in the industry. Despite serving both OTAs and airlines, this change will likely accelerate uptake from airlines, regardless of type (full service or low-cost), as these trends and requirements usually start in the US and spill over globally.
Timing is Crucial, but Execution Remains Key
COVID-19 was game-changing, fundamentally altering the travel landscape and our beliefs. However, in the travel industry, these transformative moments are a constant. Recognizing the right moment and effectively acting on it is what truly sets successful ventures apart in the dynamic world of travel tech.
As Picasso said, “Inspiration exists, but it has to find you working.” It’s through persistent effort that we recognize and seize these pivotal moments in travel tech. We can all build a massive business without an immediate “why now,” trusting that its “Super Bowl” moment might be just around the corner.
Even with an amazing “why now,” failure is still possible with poor or untimely execution. We need to continually innovate and adapt to achieve success and go places.
Caravelo’s success wasn’t just about the pandemic creating a “why not” scenario; it was about having a product ready to capitalize on the industry’s reset button. Similarly, Bob’s TravelTag didn’t just exploit a regulatory gap; it offers a superior, airline-integrated solution that airlines and passengers craved. Deal Engine, with its pre-existing platform, is ready to dominate the post-refund-regulation landscape.
The Travel Tech Essentialist’s post on “Why Now” reminds us that while timing is crucial, the journey and execution are equally important. The industry’s dynamic nature means opportunities will always arise, and being prepared to act is key to thriving in this ever-evolving landscape. So, sharpen your ideas, stay agile, and be ready to execute flawlessly when your Super Bowl moment arrives. The travel industry and its ever-evolving needs await.
