Travel Tech Investments Near Multiyear Lows Despite AI Growth

Despite steady consumer interest in travel, investor enthusiasm for travel technology startups has cooled. Crunchbase figures indicate that even a wave of new companies utilizing artificial intelligence to enhance the travel sector has failed to reverse the broader investment slowdown. Whether uncertainty surrounding how AI will ultimately transform travel bookings and planning plays a role in this hesitation remains an open question.

Data from Crunchbase shows that travel tech startups have secured $2.2 billion throughout the first three quarters of the year. The top beneficiaries span a diverse spectrum of sectors, including hotel administration software, reservation platforms, alternative lodging, and corporate gatherings. The category also encompasses electric aviation, travel finance, insurance, and consumer hospitality, illustrating a broad classification of travel technology.

The broad trend: Crunchbase data highlights that investors are committing to far fewer travel startups compared to the periods immediately preceding and following the COVID-19 pandemic. Total capital raised and overall deal counts this year could drop to their lowest levels since at least 2018.

AI remains a recurring theme among the leading recipients of capital, with numerous startups deploying the technology to automate hospitality functions, personalize reservations, and simplify trip planning.

The numbers: Globally, travel tech startups have collected $2.2 billion across only 302 investment rounds during the first three quarters of the year, according to Crunchbase. This represents a substantial decline from the $3.7 billion secured during 2025. Transaction volume is on pace to decline for the third consecutive year, signaling a market where investors are channeling larger amounts of capital into a smaller pool of businesses.

Current funding totals and deal frequencies remain well below historical benchmarks. For comparison, capital investment in the sector exceeded $12 billion in 2021—a somewhat unexpected figure given the severe disruptions to travel during the pandemic. Even before the pandemic, financing and transaction numbers were significantly higher, reaching $9.4 billion across 1,277 deals in 2018 and $10.4 billion across 1,190 transactions in 2019.

Travel industry publication Skift acknowledged the investment contraction in a recent newsletter, stating: “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.

The top-funded recipient through the third quarter was Mews, an Amsterdam-based hospitality software firm that closed a $300 million Series D round in January. Led by EQT Growth, the round included participation from Atomico, HarbourVest Partners, Kinnevik, Battery Ventures, and Tiger Global Management. Mews assists hotels with reservations, payments, and operations, and intends to scale its deployment of AI agents for workflow automation. The financing established a $2.5 billion valuation for the enterprise.

In February, the Chinese electric aircraft manufacturer Aerofugia raised roughly $144 million. The financing was led by CITIC Securities, with contributions from New Alliance Capital, Vertex Ventures China, and additional investors. Headquartered in Chengdu and supported by automaker Geely, Aerofugia develops 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 creators, publishers, and event organizers in converting audience interest in travel into affiliate revenue and bookings.

Home-swapping enterprise Kindred disclosed an $85 million Series C round led by Index Ventures in February. Operating out of San Francisco, the startup runs an exclusive network allowing travelers to exchange accommodations in each other’s residences. The announcement also incorporated a $40 million Series B co-led by New Enterprise Associates and Figma CEO Dylan Field, bringing the total disclosed financing for that day to $125 million.

Paris-headquartered Naboo secured another major transaction, announcing a $70 million Series B in February. Led by Lightspeed Venture Partners, the round included backing from Notion Capital, Isai, and Ternel. Naboo leverages AI to assist businesses in venue sourcing, corporate event organization, and the management of associated procurement and payments.

Exits

A number of travel startups secured acquisitions this year, including firms building AI tools for trip booking and organization. Amadeus bought corporate travel AI assistant SkyLink in February, while Expedia acquired AI trip-planning venture Layla in July. Both transactions highlight an industry pattern where established travel corporations absorb startups to bolster their AI capabilities.

In February, Expedia additionally finalized its purchase of venture-backed Tiqets, a ticketing platform for attractions, museums, and experiences.

Regarding initial public offerings, one potentially significant prospective exit was called off. Travel experiences provider Klook canceled its planned U.S. stock offering in October after initially filing the paperwork last November.

Nevertheless, the contraction in startup financing and the scarcity of sector IPOs have left one major public player unaffected. Navan, a corporate travel booking and expense administration platform, has experienced a nearly 60% stock increase this year. Formerly known as TripActions, the company began trading on Nasdaq under the ticker NAVN in October 2025. Its shares closed at $27 on October 28, marking an approximate 58% rise from its December 31 closing price of $17.08. This also placed the stock 8% above its $25 IPO price, indicating that this year’s gains largely recovered losses incurred following the listing.

Related Crunchbase query:

• Funding To Travel-Related Startups

Illustration: Dom Guzman

Frequently Asked Questions

How much funding have travel tech startups raised this year?

Travel tech startups have raised $2.2 billion globally through the first three quarters of the year across 302 funding rounds.

How does this year’s funding compare to previous years?

Funding has decreased significantly from the $3.7 billion raised in 2025. Deal volume is on track to fall for a third consecutive year, and totals remain far below historical peaks such as the $12 billion raised in 2021 and the pre-pandemic totals seen in 2018 and 2019.

Are AI startups receiving funding in the travel sector?

Yes, AI remains a recurring theme among top funding recipients, with startups using it to automate hospitality operations, personalize bookings, and streamline travel planning. However, the broader funding slowdown persists.

What were some of the largest travel tech deals this year?

Notable deals include Mews’ $300 million Series D, Aerofugia’s $144 million financing, Stay22’s $122 million minority growth investment, Kindred’s $125 million combined Series B and C funding, and Naboo’s $70 million Series B.

Have there been any major acquisitions or IPOs in travel tech?

Yes. Amadeus acquired SkyLink, and Expedia acquired both Layla and Tiqets. On the IPO front, Klook withdrew its planned U.S. offering, while the already-public corporate travel platform Navan saw its stock rise nearly 60% this year.