Travel demand appears to be holding up, but at the same time, investor appetite for travel tech startups has cooled. Even a wave of startups promising to improve travel with AI hasn’t managed to reverse the funding slowdown, a review of Crunchbase data shows. Whether uncertainty over how AI will reshape travel planning and booking is contributing to that pullback remains an open question.
Startups in the travel tech space have raised $2.2 billion this year through the third quarter, according to Crunchbase data. The largest funding recipients span a wide range of categories including hotel management software, travel booking platforms, alternative accommodations and corporate events. The mix also includes electric aviation, travel finance and insurance, and consumer hospitality businesses, reflecting a broad definition of travel tech.
The broad trend: Investors are making far fewer bets on travel startups than immediately before and after the COVID-19 pandemic, Crunchbase data shows. This year could be the lowest since at least 2018 when it comes to dollars raised and deal count.
AI is a recurring theme among the largest funding recipients, with many using it to perform functions such as automating hospitality operations, personalizing bookings and streamlining travel planning.
The numbers: In the first three quarters of 2026, startups in the travel tech space have raised $2.2 billion globally across just 302 funding rounds, Crunchbase data shows. That’s down fairly significantly so far from the $3.7 billion raised in 2025. Deal volume is on track to fall for a third consecutive year — pointing to a market where investors are putting more money into fewer companies.
Funding and deal volume in recent years remain far below past levels. In 2021, for example, funding in the sector topped $12 billion. That’s a bit surprising considering that so much travel was halted in the midst of the COVID-19 pandemic. But even prior to the pandemic, funding and deal totals were much higher — totaling $9.4 billion across 1,277 deals in 2018 and $10.4 billion across 1,190 transactions in 2019.
Even travel industry researcher Skift noted the funding downturn in a recent newsletter, saying: “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
Interestingly, several of the year’s largest deals involved startups headquartered outside of the United States.
The year’s largest funding recipient through the third quarter was Mews, which raised a $300 million Series D in January led by EQT Growth, with participation from Atomico, HarbourVest Partners, Kinnevik, Battery Ventures and Tiger Global Management. The Amsterdam-based hospitality software company helps hotels manage reservations, payments and operations, and says it plans to expand its use of AI agents to automate workflows. The financing valued the company at $2.5 billion.
Chinese electric aircraft developer Aerofugia raised about $144 million in February in a financing led by CITIC Securities, joined by New Alliance Capital, Vertex Ventures China and other investors. Chengdu-based Aerofugia, also backed by automaker Geely, develops electric passenger aircraft that take off and land vertically, often called flying taxis.
Montreal-based Stay22 secured a $122 million minority growth investment from Summit Partners in February. The startup uses AI to help publishers, creators and event organizers turn their audiences’ interest in travel into bookings and affiliate revenue.
Home-swapping platform Kindred announced an $85 million Series C led by Index Ventures in February. The San Francisco-based startup operates a members-only network where travelers exchange stays in one another’s homes. Its announcement also included a $40 million Series B co-led by New Enterprise Associates and Figma CEO Dylan Field, bringing the combined funding disclosed that day to $125 million.
Another large deal went to Paris-based Naboo, which announced a $70 million Series B in February led by Lightspeed Venture Partners with participation from Notion Capital, Isai and Ternel. The company uses AI to help businesses source venues, organize corporate events and manage related purchasing and payments.
Exits
Several travel startups have found buyers in 2026, including companies developing AI tools for planning and booking trips. Amadeus acquired corporate travel AI assistant SkyLink in February, while Expedia acquired AI trip-planning startup Layla in July. Both deals illustrate a trend of established travel companies buying startups to expand their AI capabilities.
Expedia also completed its acquisition of venture-backed Tiqets, a booking platform for museums, attractions and experiences, in February.
On the IPO side, a potentially prominent prospective exit fell through. Travel experiences platform Klook withdrew its planned U.S. offering in October after having filed last November.
Still, the downturn in startup funding and dearth of IPOs in the sector hasn’t affected one of the bigger now-public players in the space. Corporate travel booking and expense management platform Navan has seen its stock rise nearly 60% this year. Formerly called TripActions, it began trading on Nasdaq under NAVN in October 2025. Its stock closed at $27 on Oct. 28, up about 58% this year from its Dec. 31 closing price of $17.08. It was also 8% above its $25 IPO price, meaning much of this year’s gain recovered from losses following the listing.
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Illustration: Dom Guzman
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