TravelPerk CEO Avi Meir recalls a challenging time in 2020 when the company’s business essentially became illegal due to COVID-19 restrictions, leaving 350 out of 400 employees with no work. Despite the initial impulse to lay off staff, a call from an investor convinced Meir to retain the team. This decision ultimately paid off for TravelPerk, which has since increased its workforce to 1,200 employees and secured unicorn status with a valuation of $1.4 billion following a successful funding round.
The decision to retain staff during the pandemic not only demonstrated the company’s commitment to its employees but also resulted in increased loyalty and engagement from the workforce. Research suggests that maintaining a loyal team can lead to improved performance and productivity in the long run. This approach contrasts with the common practice of implementing layoffs during tough times, which can have negative consequences on employee morale and company culture.
TravelPerk’s strategy to weather the storm included upskilling employees, making strategic acquisitions, and focusing on innovation during the downtime. The company believed in turning challenges into opportunities to emerge stronger from the crisis. As the business travel sector faced uncertainty, TravelPerk remained optimistic about a return to normalcy, emphasizing the importance of face-to-face interactions and the resilience of human nature.
While business travel had not fully rebounded to pre-pandemic levels as of late 2021, TravelPerk identified new market opportunities driven by changes in work dynamics, such as flexible and remote working. The company adapted by leveraging AI-driven systems to enhance the customer experience, particularly in booking complex trips or making last-minute changes. By remaining agile and innovative, TravelPerk was able to capitalize on evolving market trends and maintain its competitive edge.
TravelPerk’s ability to navigate the pandemic and grow amid market constraints was supported by timely funding rounds and a focus on investing in technology. The company’s experience challenges the notion that short-term job cuts are always necessary for long-term growth, emphasizing the benefits of retaining skilled employees and fostering a loyal workforce. As the business travel landscape continues to evolve, TravelPerk remains committed to meeting the changing needs of its customers and staying ahead of the curve.
