Byway, a curated package tour business founded by Cat Jones in March 2020, has recently closed an oversubscribed £5.04 million Series A round. The company offers slow and sustainable travel options, focusing on flight-free trips that allow travelers to explore off-the-beaten-track locations. This type of travel has gained popularity due to environmental concerns and the negative impacts of over-tourism on popular destinations.
Jones, who has a background in digital adtech and investment, saw an opportunity to provide travelers with unique experiences that are more environmentally friendly. Byway’s growth has been impressive, with a three-fold increase in sales each year and over 4,200 trips sold to date.
The Series A funding, led by Heartcore Capital with participation from Eka Ventures and re-investing angels, will be used to expand into new regions and hire more employees. Byway plans to invest in its proprietary artificial intelligence-based trip planner technology, called JourneyAI, which is currently used for 60% of online bookings.
JourneyAI draws on various sources of information to build personalized trip packages for customers. It considers factors such as transport timetables, customer preferences, and feedback from previous trips. Byway aims to match customers with similar travelers who have had positive experiences in the past.
The trip planner tool can be used in different ways. Customers can input basic details to receive whole holiday suggestions, or they can customize pre-planned trips featured on Byway’s website to better fit their needs. The AI technology also helps manage disruption risks in multi-leg journeys by offering alternative options if the original plan is derailed.
Byway’s focus on providing a complete holiday experience sets it apart from traditional travel agents. The company takes responsibility for managing disruptions and provides customers with support through WhatsApp Groups. This level of service, combined with the AI technology, allows Byway to offer delightful and resilient routes.
While the majority of customers use the tech tool to plan and book their trips, some still prefer to have a human agent involved in the process. Byway aims to improve the responsiveness of its AI and increase the proportion of trips booked through the tech tool. The company recognizes the need for human expertise in locating quality content and building local nuance into the AI’s recommendations.
As Byway prepares for regional expansion, it also faces regulatory challenges related to Brexit. Establishing a European base in the Netherlands is necessary to comply with regulations and protect European customers. Once this is in place, Byway can begin marketing to Europe.
Overall, Byway’s success and innovative approach to sustainable travel demonstrate the growing demand for flight-free and environmentally friendly tourism. With continued investment in AI technology and a focus on providing excellent customer experiences, Byway is well-positioned to lead the way in this niche market.