“Customer acquisition costs” is the phrase trip planning naysayers like to use when explaining why they think the sector is a startup graveyard.
NB: This is the second instalment of a two-part viewpoint by Saket Newaskar, co-founder and chief technology officer at Triphobo. Click here to read the first part.
They argue that it is very expensive to attract users, particularly when some travel sites have an online marketing budget running into the hundreds of millions of dollars.
But let me go slightly deeper.
When it comes to user acquisition, I agree to an extent. It is tough to get through in the travel space but there are some strategies which can work and which are being used by some successful trip (or travel) planning businesses.
Source: How a trip planning startup can succeed