There are so many great new businesses in our sector doing interesting things. Yet working with large companies can be difficult for start-ups. Even the most forward-thinking travel companies and corporates (for the sake of this article, 'corporate' means any big, structured business whether a pharmaceutical firm or TMC) present barriers during implementation, mainly due to legal technicalities, a lack of focus or an unwillingness to take the risk.
Start-ups at a recent Travel Tech Labs event said it is easier to get investment but signing, and implementing, the first client is trickier. "It's the first contract that start-ups need; it means more to them," says Jo Eckersley, CEO of Bubbl. "Products can be tweaked after building the implementing but it needs a trial and that's where the corporate could be most useful."
Alex Grant, founder of Touriocity added that sometimes there is a pressing time frame to consider. "Time and resources are needed from the corporate to invest properly. The start-ups can't sit around waiting for things to happen as they could close after a few months. Corporates lose interest it if doesn't work immediately [because they are focused on their P&L]."
Christophe Tcheng, VP core products at American Express GBT agrees that investors are getting better but travel suppliers are brand conscious and want to bring in start-ups that help scale rather than cannibalise what they do already.
He also believes that even if the legal and compliance requirements were removed there's still "one more fundamental aspect that makes it hard".
"I know we [corporates] are very difficult to manage and it is hard to enter the game. The industry has made it harder to innovate in travel in the last 10 years," Tcheng told the room of start-ups. "Twenty years ago it was easy to know where to go, such as the GDS, but now there are the likes of Expedia and Booking.com, and lots of content [ie a fragmented marketplace]."
Amex GBT, and many suppliers, have responded by developing API-enabled platforms so start-ups can scan itineraries and use the data to develop or improve products, or white label them like Air Re-Shop Expert.
There is clearly willingness on both sides; the traditional companies have to move forward and the start-ups have to mature. Now the two have to find more ways to work together for each other's sake, and probably at a faster pace.