Sector Snapshot: Travel Tech Funding Heads Toward Multiyear Low Despite AI Push

Although consumer travel demand remains resilient, investor enthusiasm for travel technology startups has cooled significantly. According to an analysis of Crunchbase figures, even an influx of emerging companies utilizing artificial intelligence to enhance the travel experience has failed to halt the ongoing funding slump. It remains unclear whether market uncertainty regarding how AI will ultimately transform booking and trip planning is driving this investor pullback.

Global travel tech startups have secured $2.2 billion throughout the first three quarters of the year, based on Crunchbase records. The top-funded entities span a diverse array of sectors, including hotel management systems, booking engines, short-term rentals, and corporate events. The landscape also encompasses consumer hospitality, travel finance, insurance, and electric aviation, highlighting a broad industry definition.

The broad trend: Data from Crunchbase indicates that venture capitalists are making markedly fewer investments in travel startups compared to the periods immediately before and after the COVID-19 pandemic. Total capital secured and overall transaction counts for the year are tracking toward their lowest levels since at least 2018.

Artificial intelligence remains a consistent focal point among the highest-earning recipients, with numerous companies deploying the technology to automate hospitality workflows, personalize reservations, and simplify itinerary creation.

The numbers: Globally, travel tech startups collected $2.2 billion across a mere 302 investment rounds during the first three quarters of the year, according to Crunchbase. This reflects a substantial decline from the $3.7 billion recorded during the same timeframe in 2025. Transaction volume is on pace to drop for the third straight year, demonstrating a market where backers are concentrating larger sums of money into a smaller number of businesses.

Current funding and deal metrics continue to lag far behind historical figures. In 2021, sector funding surpassed $12 billion—a notable tally given the widespread travel restrictions during the pandemic. Even before the health crisis, totals were significantly higher, reaching $9.4 billion across 1,277 deals in 2018 and $10.4 billion across 1,190 transactions in 2019.

Highlighting the contraction in a recent newsletter, travel industry research firm Skift remarked, “Though it’s too early to say whether this is a long-term market movement, it’s a clear sign of the times.”

Notable deals

Significantly, several of the largest transactions of the year featured startups based outside the United States.

Leading all funding recipients through the third quarter was Mews, an Amsterdam-headquartered hospitality software provider that secured a $300 million Series D round in January. Led by EQT Growth, the financing included contributions from Atomico, HarbourVest Partners, Kinnevik, Battery Ventures, and Tiger Global Management. Mews helps hospitality operators handle bookings, payments, and daily tasks, and stated it intends to scale its deployment of AI agents for workflow automation. The transaction established a $2.5 billion valuation for the business.

In February, Chengdu-based electric aircraft developer Aerofugia secured roughly $144 million in a funding round led by CITIC Securities, with participation from New Alliance Capital, Vertex Ventures China, and additional backers. The company, which is backed by automotive manufacturer Geely, builds electric passenger aircraft capable of vertical takeoff and landing, commonly referred to as flying taxis.

Montreal-based Stay22 obtained a $122 million minority growth investment from Summit Partners in February. The startup utilizes AI to assist digital publishers, creators, and event organizers in converting audience travel interest into confirmed reservations and affiliate commissions.

Home-swapping enterprise Kindred disclosed an $85 million Series C round led by Index Ventures in February. The San Francisco startup runs an exclusive network allowing members to trade accommodations in one another’s residences. The announcement additionally featured a $40 million Series B co-led by New Enterprise Associates and Figma CEO Dylan Field, bringing the total disclosed capital raised that day to $125 million.

Paris-based Naboo secured another major transaction, announcing a $70 million Series B in February led by Lightspeed Venture Partners, alongside contributions from Notion Capital, Isai, and Ternel. Naboo leverages AI to assist enterprises in sourcing venues, planning corporate gatherings, and overseeing associated purchasing and payments.

Exits

Several travel startups successfully secured acquirers during the year, including companies building AI-driven planning and reservation tools. Amadeus purchased corporate travel AI assistant SkyLink in February, while Expedia bought AI itinerary-planning startup Layla in July. Both transactions highlight a broader pattern of legacy travel enterprises acquiring early-stage ventures to bolster their artificial intelligence capabilities.

Additionally, Expedia finalized its purchase of venture-backed Tiqets, a ticketing platform for museums, tourist sites, and activities, in February.

Regarding initial public offerings, one prominent prospective market exit was canceled. Travel experiences platform Klook withdrew its intended U.S. share offering in October, following its initial filing last November.

Nevertheless, the broader contraction in startup financing and scarcity of public market floats has not negatively impacted one of the sector’s prominent publicly traded firms. Corporate travel booking and expense administration platform Navan has experienced a stock price increase of nearly 60% over the course of the year. Formerly known as TripActions, the firm began trading on the Nasdaq under the ticker NAVN in October 2025. Its shares closed at $27 on October 28, representing a roughly 58% advance from the December 31 closing price of $17.08. This also positioned the stock 8% above its $25 IPO price, indicating that the year’s gains largely recovered post-listing declines.

Related Crunchbase query:

• Funding To Travel-Related Startups

?Frequently Asked Questions

01Why are travel tech startups experiencing a funding slowdown despite high travel demand?

While consumer travel demand has remained steady, investor appetite has cooled significantly. Although many startups are incorporating artificial intelligence, uncertainty surrounding how AI will ultimately reshape travel planning and booking may be contributing to the investment pullback.

02How much funding have travel tech startups raised this year?

Startups in the travel tech sector have raised $2.2 billion globally across 302 funding rounds through the first three quarters of the year, representing a decrease from previous years.

03What are some notable travel tech acquisitions?

Recent acquisitions include Amadeus purchasing corporate travel AI assistant SkyLink, Expedia acquiring AI trip-planning startup Layla, and Expedia completing its purchase of attraction booking platform Tiqets.

Illustration: Dom Guzman