GloballyTourismis undergoing major changes at a time when UK travel tech companyBywayannounced the completion of an approximately $6.4 millionSeries A Financing, the funding will be used to drive the expansion of its AI-based flightless travel planning service. The round was led by Heartcore Capital with participation from Eka Ventures and several angel investors.
Byway is said to have had a dramatic start, with founder Cat Jones deciding to launch the company in March 2020 to focus on slow travel and sustainable tourism just as the new crown epidemic was sweeping Europe. To date, Byway has sold more than 4,200 trips, with an annual growth rate of 300%, proving the viability of its business model.
Jones said:- "We firmly believe that slow travel and more sustainable ways of traveling are thriving." Byway is unique in that its travel offerings do not rely on airplanes at all, but instead take place on land (and sea) via train, bus, or ferry, allowing vacationers to take in the sights off the beaten path and avoid crowded popular destinations.
AI-powered travel planning
Byway's core competency is its proprietary AI travel planning technology, JourneyAI, which is capable of designing personalized travel itineraries based on user preferences, transportation schedules, fare information, and past success stories. Currently, approximately 60% of vacation packages are completed through online bookings, meaning customers use JourneyAI directly for trip design.
Jones explains, "Our AI not only has to design delightful routes, but also ensure that the itinerary is resilient to disruptions." In order to cope with the disruptions that multi-stop overland trips can face, JourneyAI has built-in resilience designed to quickly provide alternatives if the original plan is thwarted.
Artificial Intelligence meets Human Services
While AI technology plays a key role in Byway's business, manual service still holds an important place. About 40% of sales come from human concierge services, where staff communicate with customers to design travel packages that meet individual needs.
"In a lot of cases, the technology has performed brilliantly," Jones says, "but there are certainly some cases where we need human involvement to refine the service." The company has also set up WhatsApp groups for customers to ensure that travelers can access support at any time while en route.
The future of sustainable tourism
Byway's success is more than just a business story; it reflects an important trend in the travel industry. Environmental concerns are driving more and more vacationers to look for ways to fly less, while many popular destinations are struggling to cope with the effects of overtourism.
Jones said, "Multi-stop overland trips change the pace of travel and create opportunities for alternative, less environmentally harmful forms of travel. They can also extend the economic benefits to more places and reduce pressure on tourist hotspots."
Future development plans
With the completion of the new funding round, Byway plans to further expand its team, particularly by adding engineers to bolster its investment in JourneyAI technology. The company is also preparing for regional expansion, including setting up a base in the Netherlands to address post-Brexit regulatory requirements.
"Once we complete our Eurobond application, we can begin to promote our services to the entire European market," Jones looks ahead.
Against the backdrop of the growing emphasis on sustainable travel, Byway's innovative model and latest funding certainly opens up new possibilities in the travel tech space. As artificial intelligence technology continues to advance and consumer demand for eco-friendly travel grows, Byway's development deserves the industry's continued attention.