In a revealing conversation on "20 Minutes VC," host Harry Stebbings interviews Avi Meer, the CEO of TravelPerk, about the current state of business travel amidst the COVID-19 pandemic. Avi shares his journey from a young coder to a successful entrepreneur, his company's swift transition to remote work, and his views on the cautious approach to lockdowns. Advocating for a balanced response, Avi emphasizes the importance of assessing the economic and societal costs of continued restrictions. He predicts a resurgence in business travel in 2021, with domestic travel leading the recovery, and highlights the need for flexibility and adaptation in the travel industry. The discussion also touches on the support startups need from VCs during crises, with Avi commending the proactive backing from investors like LocalGlobe. Finally, Avi envisions TravelPerk becoming the leading business travel platform within five years, despite the challenges posed by the pandemic.
"I'm delighted to welcome back to the show a friend and former guest, Avi Meer, founder and CEO at Travel Perk, the travel management platform that combines the best of leisure and corporate travel into one smooth experience."
This quote introduces Avi Meer and his company, Travel Perk, highlighting its mission to streamline business travel.
"I started coding when I was very young, even younger than you, Harry. And yeah, I was passionate about understanding systems and hacking in the old sense of the word, meaning understanding how system works and then finding creative ways of getting the system to do something that wasn't meant to do."
This quote describes Avi's early interest in coding and systems, which later evolved into entrepreneurship.
"The two sentences speech behind travel perk is business travel sucks and we're here to fix it."
The quote succinctly captures the mission statement of Travel Perk, highlighting its purpose to improve business travel.
"Back in beginning of March, we closed all offices down and moved to be fully remote."
This quote explains Travel Perk's proactive response to the COVID-19 outbreak by shifting to remote work early on.
"We have to choose between something that is a known bad versus an unknown potential bad."
The quote emphasizes the difficult decisions society faces when dealing with the pandemic and the need to weigh different risks.
"Part of being a free person is taking risks sometimes and acknowledging that you take a risk and understanding that and being okay with it."
This quote reflects Avi's belief in personal freedom and responsibility when it comes to navigating risks, including health risks during the pandemic.
"The Swedish approach seems to be the right one... If you're below 45 and healthy, your risk seems to be pretty low... I would not force anybody. But if you choose to do so, you should be allowed to go back to work and you should try and follow as much as you can the guidelines for social distancing and keeping things safe."
The quote explains Avi Meir's support for the Swedish model of pandemic management, which he sees as a balance between protecting the vulnerable and maintaining personal freedoms for low-risk individuals.
"Why are our tax money being used to chase a guy camping in the middle of nowhere?... Use common sense. Let people go back to work, encourage people to understand the risk."
This quote criticizes the perceived overreach and unnecessary use of resources by authorities during the pandemic, advocating for more sensible approaches based on trust in the public's judgment.
"Flattening the curve means that the surface below the curve still is the same. You just delay... It's not about not getting it, it's about delaying it."
The quote highlights the actual purpose of flattening the curve, which is to spread out infections over time to avoid overwhelming healthcare systems, rather than stopping the spread entirely.
"We've never seen, so it never happened... We're talking about demand going probably below 5% globally for travel right now... We have a huge degree of uncertainty."
The quote emphasizes the unprecedented nature of the pandemic's impact on travel, with a near-total collapse in demand and significant uncertainty about the future.
"My first approach was... let's buy ourselves some time and understand what's going on... We are allocating capital to training for customer care... I'm willing to bet that business travel will grow in 2021, not based to 2020. Based on 2019."
The quote outlines Avi Meir's strategic approach to capital allocation, focusing on preserving company strength and preparing for recovery, while expressing optimism about future growth in business travel.
"First priority for us as a business is to survive... Number two priority for us is to emerge strong after this crisis... Cash should be the number one priority."
This quote reveals Avi Meir's priorities for his business during the pandemic, which include survival and the strategic use of resources to ensure the company is well-positioned for the aftermath.
"between cutting into fat or cutting the muscle and definitely not cutting the bone, right. So we want to emerge strong after that."
This quote emphasizes the delicate balance in cost-cutting measures, aiming to avoid damaging the company's fundamental capabilities.
"But if you have no cash, priority number one prevails. Right? So if you have no cash, you have to find a way to get the Runway."
Here, Avi highlights the utmost importance of liquidity and the need to secure financial runway to continue operations.
"Let's be as transparent as possible. It's not a family. Right. And if you have to use a cliche, the family one, I like sports team one."
Avi Meir contrasts the idea of a company as a family with that of a sports team, where tough decisions and clear communication are necessary.
"So having a very transparent communication, sharing the challenges, sharing what you're struggling with."
The quote highlights the importance of open communication about difficulties faced by the leader, which can foster a supportive environment.
"Staying positive, I think resilience plays a huge role here. And if you had resilience going into this thing, then it's easier for you."
This quote underscores the role of pre-existing resilience in coping with the crisis and the need to develop it if not already present.
"Just have a sane schedule, I would say, in terms of what you can fix and what you can't and what you should worry about or not."
Avi Meir advises on the significance of maintaining a healthy schedule and focusing on solvable problems.
"I think people will travel, and my prediction is that 2021 will be business travel, in 2021 will be higher, or the dollar amount will be higher than that of 2019."
Avi Meir expresses his bullish stance on the future of business travel, anticipating an overall increase in activity and spending.
"So domestic will come back first, is my guess. It's easier, right? It's easier to manage because the two ends of the trip are under the same, let's say, policy."
The quote suggests that domestic travel will recover more quickly than international travel due to simpler logistics and consistent policies within the same country.
I think you can distance more. Sometimes you can even open the window. The doors open every station. So trains will be bigger than flights at the beginning, during the period of domestic travel. And then flexibility would be a huge issue.
The quote emphasizes the practical advantages of train travel during the pandemic and highlights the increasing importance of flexibility in travel arrangements.
First money into travel company probably dead for a while. Companies wanted to raise the first round are struggling.
This quote indicates that new investments in travel startups are on hold and that companies seeking initial funding rounds are facing significant challenges.
We're definitely dealing with this. We're definitely looking more and more in that direction.
The speaker indicates that their company is actively considering acquisitions and consolidation opportunities as a strategic response to the market conditions.
They just sent me an email. It was like a two sentence email. I should with them if they're okay for me to publish the screenshot. It's just amazing.
The quote describes a VC firm's gesture of support, which exemplifies the kind of investor backing that can help companies navigate crises.
Just fantastic. So the first thing visas should do, if they are able to and the company is good, is reach out and sign a check to their current portfolio.
The quote suggests that VCs should proactively offer financial support to their portfolio companies, especially those that are fundamentally strong but impacted by external crises.
So maybe finding a less time consuming way of doing that.
The quote calls for a more efficient method for sharing company information with VCs to save time for founders.
We probably will be the number one business travel platform globally in next five years.
This quote outlines Avi Meir's ambitious vision for TravelPerk's growth and market position in the coming years.