This document discusses travel inequality and why some travel startups fail. It notes that according to research, most people only travel 1-2 times per year, while a small percentage of frequent travelers are responsible for a large portion of airline revenue. The document advocates that for startups to be successful, their business models and retention tactics need to target different types of travelers based on frequency, from one-time users to frequent travelers who subscribe. It provides a framework for matching business models and retention strategies to types of travelers based on their trip frequency.

1. “Travel inequality”
… or why travel startups fail
Bayram Annakov, App in the Air

2. Power law in travel
%ofrespondents
0
15
30
45
60
Number of trips
0 1-2 3-4 5+
Gallup research, 2015

3. Power law in travel
US Bureau of Transport Statistics, 2015
flights(M)
0
75
150
225
300
% of population

4. “87%of American’s customers fly with the airline
only once per year” - Scott Kirby, President, AA
“5%of Delta’s passengers give 25% of our revenue”
- Tim Mapes, SVP Marketing, Delta
Power law in travel

5. Impact and tactics
Retention tactic Business model
5+ email integration
subscription
3-4
geo fencing & frequent
updates
1-2 ASO & SMM one-time payment
or free with strong
viral component0
“family”use case / taxi
drivers

6. Books worth reading

7. https://github.com/appintheair