The travel industry continues to undergo its biggest crisis in modern history—a worldwide pandemic of epic proportions that has paralyzed global mobility for more than two years.

What was tried and true prior to the pandemic is now contestable. Consumer preferences are changing. In particular, we have witnessed the rise of new working paradigms, ones that require less travel in a more digitized world.

Overall, the face of the industry is shifting in unforeseen ways.

Travel and Mobility Tech is maturing

The Travel and Mobility Tech industry has not only entered a new travel era as a result of the global pandemic, but it is also maturing. This is the next step in its evolution.

As we have reported several times in the past, we believe startups drive massive disruption and transformation of entire industries, including the Travel and Mobility Tech sector. The more startups are founded and funded, the higher the level of innovation to come in the future.

Across the globe, thousands of startups in the Travel and Mobility Tech space have worked fearlessly on innovative solutions to make travel more efficient, frictionless, and interconnected.

Speaking of interconnection, the merging of the travel and mobility industries (which led to the name of this publication as TNMT stands for “Travel and Mobility Tech”) was primarily driven forward by cutting-edge startups. These companies have a user-centric understanding of the traveler journey which has made both sectors, travel and mobility, closely intertwined.

A primary example of this is Uber.

  • The ride-hailing giant began as a local, on-demand chauffeur service that transformed into a global mobility provider.
  • Now, Uber aims to become a one-stop-travel shop where users can manage their entire travel itineraries.

However, one thing is changing.

Many of the most prominent Travel and Mobility Tech startups of the past decade are no longer startups. These companies have grown large enough to employ hundreds, sometimes thousands, of employees, expanding across the globe and becoming successful enough to bid private capital markets adieu.

This is the maturing character of the industry we’re talking about.

  • 2021, for example, saw more Travel and Mobility Tech players go public than ever before.
  • These startups-turned-public-players are competing in an open market and must convince venture funds and retail investors alike that their proposition is viable.

Expanding our research focus

With all this in mind, we believe it is high time to expand our TNMT research focus beyond startups. From early January 2022 on, we began observing how these publicly traded tech companies perform and how they continue to innovate Travel and Mobility Tech.

Long story short: Global crises, such as the COVID-19 pandemic, are opportunities for structural re-distribution and leapfrogging.

So, what better time is there to hit “reset” than now?

We decided to start tracking the industry from the starting point of a new era of travel.

The TNMT Market Index: A new pulse check for our industry

To best track leading Travel and Mobility Tech players, we created the TNMT Market Index.

This market index is the first of its kind to represent category leaders in the Travel and Mobility Tech space. In particular, the TNMT Market Index is designed to provide insights into the tech ecosystem from a public market perspective.

We will update the market index on a weekly basis, allowing you to track the market movements of key industry players. In turn, you can decode major industry events and their impacts on investor sentiments.

On top of this, we will take two approaches towards tracking leading companies in Travel and Mobility Tech: an equal-weighted and a market-cap-weighted index structure.

If you would like more information on our exact index methodology, please scroll to the bottom.

For insights into what these market movements mean, sign up for the TNMT newsletter. We will contextualize the latest news, providing you with the explanations and drivers behind the stock market fluctuations and key market trends.

Details on the methodology

Thank you for staying with us until the end. If you made it this far, we are excited to share the nitty-gritty of how we constructed the TNMT Market Index with you.

You might have noticed already. We’re portraying the TNMT Market Index based on two methodologies: a market-cap-weighted method and an equal-weighted one.

The main difference between these two approaches is that the cap-weighted index is impacted by the market movements of companies with a large market cap.

In the case of our index, this means that Airbnb and Uber are the two companies with the most influence. These industry leaders are followed by companies such as Didi, Grab, Lyft, and Trip.com, which have a large market cap, albeit smaller than Uber.

Conversely, the equal-weighted index is based on price change and is weighted equally across the basket of stocks included. This means that every company impacts the index in an equal manner. You’ll see the index is much more stable compared to the cap-weighted one.

The reasons we’re portraying both index methodologies are simple:

  • The market-cap-weighted index provides insights into the companies and company events that have a crass effect on market trajectories.
  • The equal-weighted index, by contrast, can help you better understand the development of the overall market, which consists of companies small and large.

Finally, for a closer look at how the TNMT Market Index compares to the “broader market”, we’re including a typical stock market index—the S&P 500, which is cap-weighted.

You might be confused as to how we are displaying the S&P500. Please keep in mind, that we have indexed the S&P 500 in tandem with the start date of our Index: January 25, 2022.


This content is for informational purposes only and should not be used as investment advice.

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