GovTech vs Travel Tech Churn Rate
Side-by-side benchmark comparison, updated March 2026.
GovTech has a lower monthly churn rate (0.8%) than Travel Tech (3.5%), a difference of 2.7 percentage points. GovTech median ARPU is $500 versus $130 for Travel Tech.
Head-to-head benchmarks
| Metric | GovTech | Travel Tech |
|---|---|---|
| Monthly churn | 0.8% | 3.5% |
| Annual churn | 9.2% | 34.9% |
| Median ARPU | $500 | $130 |
| Typical customer base | 50-500 | 500-15,000 |
Top govtech churn drivers
- Budget appropriation cycle not renewed for the software line item32%
- Procurement rules required retendering after contract term27%
- Elected official change shifted departmental priorities20%
- Product failed FedRAMP, StateRAMP, or CJIS compliance audit13%
Top travel tech churn drivers
- Travel volume dropped due to economic downturn or external disruption35%
- OTA or booking platform offered equivalent tools natively26%
- Insufficient GDS or airline API coverage for customer's markets20%
- Poor dynamic pricing or revenue management accuracy12%
Why govtech retains better than travel tech
The 2.7-point gap between GovTech and Travel Tech reflects differences in switching cost, value density, and purchase motivation. GovTech customers face higher integration and data-migration friction, which extends tenure. Travel Tech tends to have more fragmented alternatives and weaker lock-in. Details in each benchmark page above.
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