away travel acquisition

Away Luggage Quiets Talks of Buyout, Shifts Focus to Retail Expansion 

In February, Away luggage toyed with the idea of selling. Now, it’s expanding its physical footprint with its latest store opening in San Jose, California, this week.  

See also: Luggage Brand Away Reportedly Seeking Potential Buyers

The decision to look for a purchaser follows the ongoing impact of the pandemic. In April 2020, Away put about 50% of its team on furlough and terminated another 10%. At that time, the company reported a 90% decrease in sales of its products since the start of the pandemic.  

At the time of the news, a report surfaced in March that the drop in travel due to coronavirus fears would end up costing the airline industry over $113 billion in revenue.  

See also: Away Luggage Company Furloughs Approximately Half Its Staff

Away expanded its physical store locations to 13 in the United States, the United Kingdom, and Canada, with the opening of a new store in Seattle in February 2021, 10 months after the previous store opening.  

At the time, the New York City-based firm said it also shipped merchandise to 40 nations around the globe.  

See also: Away Brings Brick-and-Mortar Store to Seattle

Emphasis on Retail Expansion  

The travel brand has planned a few new store openings, signaling a bigger focus on brick-and-mortar expansion in 2023.  

Away plans to expand its retail presence beyond the San Jose store by opening a location in the Georgetown neighborhood of Washington, D.C., later this summer, with plans for additional stores to be announced.  

This year, retail stores are expected to contribute almost 20% of Away’s revenue, generating at least $3 million in revenue.  

How Retail Boosts eCommerce

According to Away President Catherine Dunleavy , retail plays a significant role in their business not only in terms of revenue but also in boosting the entire business. Dunleavy also notes that opening a retail store results in a 150% increase in eCommerce business in that market.  

The company recognizes that due to the pandemic, it had to pause its retail expansion plans and that it would have to proceed with caution.  

Today, Away operates 13 retail stores, primarily located in major U.S. cities like New York, Los Angeles and Houston, as well as in popular international destinations like London and Toronto.  

According to Dunleavy, when selecting new store locations, Away takes into account factors such as travel spending patterns, the presence of style hubs in different cities, and the amount of foot traffic on various streets.  

“We need to make sure that we have the right brand experience and need to be in the right markets with the right street. We need to have attractive financials. When all these things come together, we open a store,” Dunleavy said.   

Dunleavy has identified retail expansion and product assortment expansion as key priorities for Away this year, with the release of the F.A.R. outdoor gear line and a focus on enhancing omnichannel services like buy online and pickup in-store.  

As a company that sells luggage, Away is addressing the challenge of maintaining customer loyalty and ensuring repeated purchases due to the infrequent need for replacement. This is particularly crucial, especially with inflation affecting consumer spending patterns.  

Impacts of Consumer Spending  

According to the PYMNTS report , although inflation is on the decline, consumers are not confident about its long-term impact, and 74% have cut down on nonessential retail purchases.  

According to proprietary research, 56% of consumers have been switching to lower-priced grocers, while 47% have been doing the same for their retailers.  

See also: Inflation Slows but Consumers Still Pivot to Cheaper Merchants

Additionally, this graph shows the percentage of consumers surveyed who consider shifting to less expensive merchants to be the “most important” change in their spending habits.  

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Founded: 2015 Founder: Steph Korey, Jen Rubio Headquarters: 503 Broadway Fl 3, New York City, New York, 10012, USA Phone: 888-428-2118 Number of employees: 500 Website: www.awaytravel.com

Away Travel, commonly referred to as simply “Away,” is a contemporary luggage and travel accessory company founded by Steph Korey and Jen Rubio in 2015. The two founders, both former employees of the popular eyewear company Warby Parker, were inspired to create Away after a broken suitcase mishap during a trip Rubio took to Switzerland. They aimed to design functional and stylish luggage for the modern traveler while providing a seamless customer experience.

Product Offering

The company’s first product, The Carry-On, was launched in 2016 after a successful Kickstarter campaign. The Carry-On was designed with features catering to the needs of the 21st-century traveler, including a built-in battery to charge electronic devices, a durable hard-shell exterior, and a compression system to maximize storage space. This product quickly gained a cult following and received rave reviews from both customers and the press. The success of The Carry-On paved the way for Away to expand its product offerings to a range of luggage sizes and travel accessories.

Over the years, Away has broadened its product line to include various sizes and styles of luggage, such as The Bigger Carry-On, The Medium, and The Large. In addition, the company offers a range of accessories like packing cubes, toiletry bags, and garment bags, ensuring that travelers have everything they need for an organized and efficient trip. Away has also developed a line of pet carriers, The Pet Carrier, to accommodate the needs of pet owners on the go.

Sustainability

Away has been committed to sustainability, and in 2020, the company launched its first sustainable product line, the “Eco Collection.” This collection features luggage made from recycled polycarbonate, a durable, lightweight material. The company also sources its textiles from recycled materials, such as water bottles, and utilizes eco-friendly packaging.

Acquisitions

In its relatively short history, Away has made a few strategic acquisitions to enhance its business operations and product offerings. In 2018, the company acquired the travel organizer app “Dots & Lines” to streamline the travel experience for its customers. The app enables users to store all their travel information, such as flight details, hotel bookings, and local activities, in one convenient location. Away has integrated the app’s functionalities into its online platform, allowing customers to plan and manage their trips more efficiently.

Funding Rounds

Away Travel has raised multiple funding rounds since its inception in 2015, totaling approximately $181 million in venture capital funding. These funding rounds have helped the company to grow, expand its product line, and establish a strong presence in the travel industry. Below are some of funding rounds of Away Travel:

Seed Round (August 2015) : Away raised $2.5 million in its seed round, led by Forerunner Ventures and Accel, with participation from Comcast Ventures and Global Founders Capital. This initial funding enabled the company to develop its first product, The Carry-On, and establish its brand.

Series A (September 2016) : Away secured $8.5 million in a Series A round led by Global Founders Capital, with participation from Forerunner Ventures, Accel, and Comcast Ventures. This round of funding allowed the company to expand its product offerings and invest in marketing and retail strategies.

Series B (May 2017) : The company raised $20 million in a Series B round led by Global Founders Capital, with participation from existing investors Forerunner Ventures, Accel, and Comcast Ventures, as well as new investors Battery Ventures and Wellington Management Company. This funding was used to support the company’s growth, expand its product line, and enhance the customer experience.

Series C (June 2018) : Away secured $50 million in a Series C round led by existing investor Forerunner Ventures, with participation from Accel, Global Founders Capital, and Battery Ventures. This round of funding enabled the company to continue its expansion, open more retail locations, and invest in research and development to improve its products.

Series D (May 2019) : In its most recent funding round, Away raised $100 million in a Series D round led by Wellington Management Company, with participation from existing investors Forerunner Ventures, Accel, Global Founders Capital, and Battery Ventures. This round valued the company at $1.4 billion, giving it the coveted “unicorn” status. The funds were used to accelerate the company’s growth, expand its international presence, and invest in new products and technologies.

Partnerships and Collaborations

Away has engaged in various partnerships to reach new customers, expand its brand presence, and create unique, limited-edition products. Here are some key partnerships:

Celebrity Collaborations : Away has collaborated with several high-profile celebrities and influencers to create exclusive, limited-edition luggage and accessories. Some notable collaborations include tennis star Serena Williams, model and entrepreneur Karlie Kloss, and actor and producer Rashida Jones. These partnerships have allowed Away to tap into the unique styles and personalities of these celebrities, offering their fans and customers one-of-a-kind products.

Brand Collaborations : Away has partnered with popular brands to launch exclusive product lines that reflect the distinct style and personality of each partner. Some notable brand collaborations include:

A. West Elm : In 2018, Away collaborated with the home furnishing and décor brand West Elm to create a collection of stylish and functional luggage that incorporated West Elm’s signature colors and patterns.

B. Dwyane Wade : In 2019, Away partnered with retired NBA player Dwyane Wade to create a limited-edition line of luggage and travel accessories inspired by his personal style and love for travel.

C. NBA : Away also teamed up with the NBA to create a special edition luggage collection featuring the logos of various basketball teams, allowing fans to showcase their team pride while on the go.

Non-Profit Collaborations : Away has partnered with non-profit organizations to raise awareness and funds for important causes. For example, in 2018, the company collaborated with the non-profit organization (RED) to create a special edition of their signature luggage. A portion of the proceeds from the sale of these products was donated to the Global Fund to support HIV/AIDS programs in Africa.

Dots & Lines Acquisition : In 2018, Away acquired the travel organizer app “Dots & Lines” to streamline the travel experience for its customers. The app enables users to store all their travel information, such as flight details, hotel bookings, and local activities, in one convenient location. Away has integrated the app’s functionalities into its online platform, allowing customers to plan and manage their trips more efficiently.

These partnerships showcase Away’s strategic approach to expanding its brand presence and offering unique products that cater to various customer segments and interests.

Awards and Recognitions

Away has received numerous awards and recognitions for its innovative products, exceptional customer experience, and overall impact on the travel industry. Here are some key awards and recognitions:

Fast Company’s Most Innovative Companies : In 2018, Away was named one of Fast Company’s Most Innovative Companies, recognizing the brand’s commitment to developing high-quality, functional products that cater to the modern traveler’s needs. Fast Company’s annual list highlights businesses that demonstrate exceptional innovation and impact in their respective industries.

Inc. 5000 : Away has been featured on the Inc. 5000 list, which ranks the fastest-growing private companies in the United States. This recognition highlights the company’s rapid growth and success since its inception in 2015.

Forbes’ Next Billion-Dollar Startups : In 2018, Away was included in Forbes’ list of Next Billion-Dollar Startups, a compilation of companies with the potential to achieve a valuation of $1 billion or more. The company achieved this milestone in 2019 during its Series D funding round.

Time’s Best Inventions : Away’s signature luggage, The Carry-On, was featured in Time’s Best Inventions list in 2018. This recognition underscores the product’s innovative design, which includes features like a built-in battery for charging electronic devices, a durable hard-shell exterior, and a compression system for maximizing storage space.

Positive press coverage : Away has been featured in numerous prestigious publications such as The New York Times, Vogue, Forbes, and GQ, which have praised the brand for its stylish designs, innovative features, and seamless customer experience. This positive press coverage has contributed to the company’s strong reputation and rapid growth.

Commitment to Social Causes

Away has shown a strong commitment to social causes since its inception, leveraging its success to give back to various communities and support organizations working towards positive change. Here are some company’s social initiatives:

Peace Direct Partnership : Away has partnered with Peace Direct, a non-profit organization focused on supporting local peacebuilding efforts in conflict zones around the world. Through this partnership, Away has committed to donating a portion of its sales to Peace Direct, enabling the organization to expand its reach and impact in communities facing conflict. Peace Direct works with local people to address the root causes of conflict, fostering peace and promoting sustainable development.

Coronavirus Response : In response to the COVID-19 pandemic, Away donated thousands of its travel bags to healthcare workers on the frontlines, providing them with a means to safely transport their personal belongings during the crisis. The company also donated a portion of its proceeds from a limited-time sale event to GlobalGiving’s Coronavirus Relief Fund, which supports communities affected by the pandemic.

Special Edition Products : Away has created limited-edition products in collaboration with various organizations and celebrities to raise awareness and funds for important causes. For example, in 2018, the company partnered with the non-profit organization (RED) and created a special edition of their signature luggage. A portion of the proceeds from the sale of these products was donated to the Global Fund to support HIV/AIDS programs in Africa.

Employee Volunteering : Away encourages its employees to engage in volunteer work and give back to their communities. The company has organized volunteer days in partnership with organizations such as GrowNYC, a non-profit focused on improving New York City’s environment and quality of life. Employees have participated in activities such as building urban gardens, cleaning up public spaces, and supporting food programs for low-income communities.

These information showcase Away’s dedication to social responsibility and its commitment to using its resources and influence to make a positive impact on various communities and global issues. It is important to note that the information provided is accurate up until September 2021, and there may be additional social initiatives undertaken by the company since that time.

Away’s dedication to innovation, design, and customer experience has enabled it to become a major player in the travel industry in just a few short years. By continuously expanding its product offerings, acquiring valuable assets, and forming strategic partnerships, Away has positioned itself as a go-to brand for modern travelers seeking stylish, functional, and sustainable luggage and accessories. As the company continues to grow and evolve, it is expected to maintain its status as a leader in the travel goods market, setting new standards for quality and customer satisfaction.

Disclaimer: Please note that the names and positions of employees mentioned may be subject to change, as individuals may move to different roles or organizations. While we make every effort to keep our information accurate and up-to-date, we cannot guarantee that all employee details are current or complete. We encourage you to verify the identity and positions of any individual mentioned and check their Linkedin Profile before taking any action based on their role.

Jen Rubio – Co-Founder and CEO

Catherine Dunleavy – President

Charles Liu – Chief Operating Officer

Jessica Lee – Design Director of Operations

Lauren Rodgers – Head of Marketing, UK

Robert Goland – CIO

Ariel A. Ventura – Director of Information Security

Katie Coviello – VP, People & Culture

Steven Hurwitz – Vice President, Product Development and Sourcing

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A brief history of Away: From suitcases to scandals

Can Away bounce back from COVID shutdowns and the company's co-founder drama?

Surely you’ve seen the ads. Just open Instagram or Facebook and you’ll scroll past the luggage that’s taking the world, particularly millennial travelers, by storm. Away debuted as a female-founded, highly funded, direct-to-consumer luggage retailer in 2015. The launch of their signature product, the Carry-On, was enormously successful. Vogue called it “The Perfect Carry-On.” People dubbed it “the little black dress of luggage.” By the conclusion of its first year in business, Away had launched three more suitcases: The Bigger Carry-On, The Medium, and The Large. This is a brief history of the company’s founding, growth, success, and some recent turmoil. 

The broken suitcase that started it all

Away launched in 2015 after founder Jen Rubio’s luggage broke in an airport in Switzerland. Her clothes and toiletries poured out of her suitcase and onto the airport floor. She ended up finding some straps and tape to get the suitcase functional enough to get to her next destination. After that, Rubio was on the hunt for a better suitcase. She reached out to her former colleague at Warby Parker, Stephanie Korey and the two came up with the idea for a durable hard-shell suitcase with wheels and a built-in battery pack capable of charging phones and tablets. Rubio and Korey met in 2011, while they were working at Warby Parker as social media manager and head of supply chain, respectively. With Away, the women knew their market and their strategy: relentless online marketing. 

Rubio and Korey netted $150,000 via family and friends to start the company. That was enough to hire an industrial designer and take a blueprint of their luggage to a factory in southeastern China, willing to take a chance on two young women with big dreams but not a lot of experience (see also: Sara Blakely and SPANX). The two founders visited that factory eight times in 2015.

The carry-on that took over Instagram

Despite their close watch on the production of their signature Carry-On, Christmas 2015 was fast approaching and their luggage wasn’t going to be ready in time. So they relied on the tried and true marketing tactic: the pre-order. Then they blanketed social media with their ads, and it worked. The first Carry-Ons were delivered to customers in early 2016. Away’s luggage is hard sided polycarbonate with for 360-degree spinner wheels and strong YKK zippers that can take the abuse that luggage typically takes. The luggage also has a removable 10,000-milliamp-hour lithium ion battery for charging personal devices.  The Away Carry-On will run you $225 including shipping in the US. A similar bag from Tumi sells for $525. 

Within months, Rubio and Korey had filed more than a dozen patent applications worldwide. The company made $12 million its first year. Away was profitable by the end of 2017. By late 2019, the company was on track to do $150 million in revenue. Away sells the vast majority of its suitcases online. It also has a handful of stores in high-traffic cities like New York, London, and Los Angeles. Today, Rubio and Korey have sold more than 100,000 suitcases. 

The scandal that made headlines

In late 2019, trouble within Away’s company culture and reports of a toxic workplace surfaced. According to the Verge , executives mocked employees on a private Slack channel. Korey was accused of making staff members cry. Employees were asked to work long hours and limit their paid time off. They were reprimanded for not responding to messages immediately, even late at night and on weekends. While Away has a cult following among celebrities, influences, and millennials, former employees are quick to point out its image is at direct odds with its company culture. 

People are still following Away's Facebook page, but year-over-year  growth rate for likes has significantly dropped.

As a result of these and many other stories, Away announced in early December 2019 that Korey would be replaced as CEO by former Lululemon executive Stuart Haselden. About a month later, Korey rescinded her resignation and planned to be co-CEO with Haselden.  In late June 2020, Korey took to Instagram to attack digital media companies and journalists in the heat of the Black Lives Matter protests.  By July, Rubio had announced that Korey would be leaving Away by the end of the year and Haselden would take over as sole CEO. 

Job listings are down 72.7% year-to-date.

Now, nearly six months into the global pandemic with most travel halted, how will the company bounce back from both the shutdowns and the company's co-founder drama?

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Yahoo Finance

10 largest 2021 travel acquisitions ripple across industry.

Pandemic opportunities fueled much of the mergers-and-acquisitions activity in travel this year, as buyers pounced on favorable valuations and sectors set for strong recoveries.

Among the top 10 deals were three that involved infrastructure or services for planes and trains, and the dealmakers were companies that your average traveler never heard of.

The biggest such deal saw Dublin-based AerCap, already the largest aircraft lessor in the world, acquiring a U.S.-based rival, GE Capital Aviation Services , for $30.7 billion in November. That deal, which saw GE grabbing $23 million in cash and a 46 percent stake in the merged companies in a bet on an aviation recovery, was roughly five times larger than the number two acquisition of the year.

In that second-biggest acquisition, France-headquartered Alstom bought UK-based Bombardier Transportation, a rail car manufacturer, in a $6.2 billion (euro 5.5 billion) deal that closed in January 2021.

lnterestingly, both sellers General Electric in the AerCap deal, and Bombardier, then-parent of Bombardier Transportation, in the transaction with Alstom, viewed the transactions as enabling them to return to their core businesses, an energy equipment and services provider for GE, and business jets for Bombardier.

The third infrastructure-services deal was the 10th biggest travel-related acquisition with Siemens Mobility acquiring rail software maker Squills for $650 million.

See the chart below to view the top 10 deals.

Hotels and real estate were in play as Blackstone and Starwood Capital executed the third largest travel-related acquisition of the year and took control of Extended Stay America for $6 billion. One might characterize Extended Stay America as a merger and acquisition football — When the deal closed in June, it was the third time Blackstone has been owner of Extended Stay America.

In another major hotel deal, the fifth largest travel acquisition of the year, Hyatt bought Apple Leisure Group for $2.7 billion in November, extending Chicago-based Hyatt’s reach further into Europe and the all-inclusive sector.

The fourth largest deal of the year had Certares, Knighthead and Apollo winning an auction to lead U.S.-based Hertz out of bankruptcy in a roughly $4.7 billion deal.

The sixth-largest travel acquistion announced or closed in 2021 was the only Asia entry with Tata Group intending to take Air India private for $2.4 billion.

It wasn’t a particularly active mergers and acquisitions year for online travel agencies, but one, Booking Holdings, announced late in the year two billion-dollar-plus acquisitions, Swedish flight-tech provider Etraveli Group for $1.8 billion (seventh-largest deal) and hotel wholesaler and distributor Getaroom for $1.2 billion (eighth largest).

Expedia Group was a seller. The online travel agency sold its once-rising star Egencia , the corporate travel agency, to American Express Global Business Travel for a 14 percent stake in the world’s largest travel management company, worth about $750 million, and a long-term hotel distribution deal. That was the ninth-largest travel acquisition of the year.

We didn’t consider special-purpose acquisition company deals in our top 10 because they are transactions executed by shell companies with no operations. If we had included them, then Altimeter Capital Growth 1’s merger with Singapore’s Grab, the ride sharing and food delivery superapp, would have been in the mix in a $4 billion transaction.

Travel’s 10 Biggest Merger and Acquisition Deals of 2021

Source: Skift, financial filings

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