Tuesday, January 25, 2022

Fighting IPO Bloat of Online Travel

online travel this week

It is no secret that venture capitalist and private equity valuations of travel startups can be greatly inflated, although Covid and lockdown contribute to volatile market conditions.

Skift examines a crop of eight new public short-term rental, travel tech and rideshare companies that went public in 2021. ,See chart below.) While many have managed to pad their coffers with the start of the stock market of 2021, taking net income to fund ongoing operations or expansion dreams, their past personal valuations have gone too high in many cases.

For example, in April grab, the Singapore-headquartered rideshare, delivery and fintech superapp, announced that it will go public in a SPAC deal at a valuation of $40 billion. Grab’s launch was delayed but it began trading on the Nasdaq on December 2, and as of last week its market cap was relatively large, but only $24.4 billion.

clear safe, a biometrics and airport security company to be made public in an initial public offering of $4.5 billion. It actually began trading on the New York Stock Exchange on June 30, and when the ticker ended last week’s session, ClearSecure had a market cap of just $1.7 billion.

it’s a similar scenario Cow, a mostly American asset management company, which began trading on Nasdaq as a public company on December 7. In July, Vacasa announced that it would go public in the SPAC deal at a valuation of $4.5 billion. But stock market investors valued the company through a different lens: As of last week, Wacasa had a market cap of $1.7 billion.

These drop-offs for Grab (-47.8 percent), Clear Secure (-32 percent), and Wakasa (-26.7 percent) can be seen in their opening prices on their first day of trading over the past week. chart below.

That doesn’t mean they’re weak companies, or that they won’t one day achieve those high valuations. The prospects of some of these companies call for playing the long game. I’m betting on Grab, for example, over the long term because of its SuperApp strategy, untapped market, and the strength of its board and management.

Still, the hype so far – and this may change – from private investors about the stock market debut of these companies has not lived up to the reality.

Online travel, short-term rentals and travel tech stock market debut 2021

company Area Share Market trading debut SPAC or IPO market cap* Stock Price Profit/Loss**
Voice fintech Nasdaq 1/13/21 IPO $21.4M (-12.4%)
Habitat short term rental asx 11/29/21 IPO $25.9M 16.10%
clear safe biometrics NYSE 6/30/21 IPO $1.7B (-32%)
grab ridesharing/delivery Nasdaq 12/2/21 SPAC $24.4 billion (47.8%)
hometugo short term rental frankfurt 9/22/21 SPAC $1.04B (-21.7%)
rate benefit travel tech Mumbai 12/17//21 IPO $611 million 5.90%
siteminder travel tech asx 11/8/21 IPO $1.2B 0%
Cow short term rental Nasdaq 12/7/21 SPAC $1.7B (-26.7%)

pay attention: , Market Caps are Estimates Shown in US Dollars

, Stock price profit or loss as shown at market close of Jan 7, 2022

Source: yahoo finance and shift

To put this in context, while Grab and Vecasa share prices were falling on the Nasdaq, as well as ClearSecure’s shortfall on the New York Stock Exchange, the Nasdaq has risen 14.2 percent over the past 12 months, and the New York Stock Exchange 15.4 percent. was up.

“Many IPOs trying to get unrealistic valuations have done poorly so far,” Richard Clarke said. Bernstein, a research organization. “Obviously the main trend is private rental, a stock gainer during COVID, and it is natural that seed investors will try to capitalize on the positive sentiment there, especially if ADRs (average daily rates) are going to start to moderate “

in short-term rental companies, while property managers Vacasa and the German vacation rental metasearch firm hometugo (-21.7 percent), have seen their valuations dive, Australia’s Habitat Since the arrival of its party on the stock market on Nov. 29, it’s riding a resurgence vacation rental wave, with a 16.1 percent stock price gain as of last week.

Many of these companies came with red ink running into testosterone-filled public company status, and so investor enthusiasm has waned. Often patience for the long game gives way to the feeling of what you’ve done for me lately.

“One trend I would note is that these companies are still unprofitable and are likely to be in investment mode for some time,” said Dan Vasiolek, a morning Star The analyst “seems that the market has moved away from unprofitable names that are valued more on sales than earnings multiples over the past few weeks, perhaps driven by a Fed communication that is sending yield rates higher.”

Of course a large proportion of these stock market debuts were outside the US logo and siteminder business in australia, hometugo shown in Germany, and rate benefit Sells its shares in India – reflecting the global strength of all emerging travel startups.

Online travel-related IPOs in 2021 and SPAC’s mostly downbeat performance may not be welcome news for those waiting at The Wing in 2021, including India’s hotel booking site and operator. Oyo, And and the US entered the semi hotel company Without, hotel booking site hotel planner, and the car-sharing market Travel,

Of the bunch, at least Sonder lowered its expected valuation of $2.2 billion to $1.9 billion at the end of October, but that won’t mean much unless its shares trade in the blazing sun on the Nasdaq. .

in the letter

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Last mile transit apps dominate 2021 downloads

The Google Maps, navigation, travel and local business app was the most downloaded app globally in 2021, followed by ridesharing app Uber. Aptop’s figures do not reflect sufficient figures for China. Language

Ecuador introduces new travel agency regulations

In an attempt to prevent financial fraud and challenging customer experiences, Ecuador established new rules for travel agencies and tour operators, including mandating physical offices and certain educational requirements among the workforce. Language

BookBarbados.com Wants to Facilitate Home-Grown Ecommerce

Why hand over the entire region to Booking.com, Expedia and Despegar? A new online travel site from Barbados, BookBarbados.com, wants to be the homemade alternative to some of the world’s leading online travel players. The idea is to make some money and benefit local businesses. Language

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