TravelPerk, a European business travel unicorn, faced a challenging decision in 2020 when COVID-19 restrictions rendered their business illegal, leaving 350 of their 400 employees with no work to do. Despite the advice to lay off staff, CEO Avi Meir decided to retain all employees, a decision that proved fruitful in the long run. Three years later, TravelPerk has solidified its unicorn status with a valuation of $1.4 billion and now employs 1,200 people.
Employee loyalty played a significant role in TravelPerk’s ability to navigate the pandemic and bounce back when the business travel market began to reopen. By prioritizing retention over redundancies, the company garnered loyalty and engagement from its workforce, ultimately leading to increased performance and productivity. A survey by Orgvue found that many managers regretted making snap decisions on layoffs, citing negative outcomes such as lower engagement.
Despite the challenges faced during the pandemic, TravelPerk managed to chart a path out of the crisis by upskilling staff and making strategic acquisitions. The company utilized the downtime to enhance its workforce and position itself for future growth. Meir emphasized the importance of turning challenges into opportunities and emerging stronger on the other side of the crisis.
The business travel sector faced significant changes during the pandemic, with many companies reevaluating the necessity of in-person meetings. However, TravelPerk recognized the importance of face-to-face interactions and saw a rebound in demand from customers who needed to travel for physical work, such as those in the engineering industry. The decision to retain staff and invest in technology allowed TravelPerk to cater to these new market opportunities.
One of the driving factors behind the increased demand for business travel is the rise of hybrid working models, which have highlighted the importance of team building events and bringing people together. TravelPerk has adapted to these market changes by leveraging AI-driven systems to enhance the customer experience, particularly around booking complex trips and rescheduling flights in real-time. The company’s focus on innovation and technology has helped drive down unit costs and increase margins.
As the business travel market continues to evolve, TravelPerk’s experience serves as a reminder that short-term cutbacks may not always lead to long-term growth. By prioritizing employee retention, investing in technology, and adapting to market changes, TravelPerk has not only survived the pandemic but also positioned itself for continued success in a post-pandemic world.
