Travel Tech Funding Slows as AI Startups Draw Major Deals and Buyers

Travel tech’s funding slowdown has continued despite a strong presence of AI in the sector’s largest deals. Startups raised $2.2 billion globally through the first three quarters of 2026, across 302 rounds, according to Crunchbase data. The total is down from $3.7 billion in 2025, while deal volume is on track to fall for a third straight year.

That combination points to investors committing capital to fewer companies, even as travel demand appears to be holding up. AI is a recurring part of the story: startups are applying it to hotel operations, trip planning, booking personalization and corporate event management. Whether uncertainty about AI’s effect on travel planning and booking is contributing to the funding pullback remains unresolved.

A sharp gap from earlier funding cycles

The current pace puts 2026 on track to be the sector’s lowest year for both dollars raised and deal count since at least 2018. The contrast with earlier periods is substantial. Travel tech companies raised $9.4 billion across 1,277 deals in 2018 and $10.4 billion across 1,190 transactions in 2019. In 2021, funding exceeded $12 billion, even though much travel had stopped during the COVID-19 pandemic.

The recent figures suggest that activity has not returned to those earlier levels. Funding totals alone don’t capture the full change: the shrinking number of rounds also indicates that fewer startups are securing backing. That can leave companies with less room to fund expansion, while investors may concentrate their capital among businesses they believe can scale or reach a clear commercial market.

Travel industry researcher Skift described the decline in a recent newsletter as “a clear sign of the times,” while cautioning that it’s too early to know whether the pattern represents a lasting market shift. That uncertainty matters when reading a partial-year tally: the figures show a pronounced slowdown to date, but don’t establish what the next funding cycle will look like.

Large rounds span software, lodging and aviation

The biggest disclosed financing through the third quarter went to Amsterdam-based Mews. The hotel management software company 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 financing valued Mews at $2.5 billion. It helps hotels handle reservations, payments and day-to-day operations, and says it intends to expand its use of AI agents to automate workflows.

Other large financings show how broadly the travel tech category is defined. Chengdu-based electric aircraft developer Aerofugia raised about $144 million in February in a financing led by CITIC Securities, alongside New Alliance Capital, Vertex Ventures China and other investors. Backed by automaker Geely, the company is developing electric passenger aircraft that take off and land vertically, often described as flying taxis.

In February, Montreal-based Stay22 received a $122 million minority growth investment from Summit Partners. Its AI tools help publishers, creators and event organizers turn audience interest in travel into bookings and affiliate revenue.

Home-swapping platform Kindred disclosed $125 million in funding in February. That total combines an $85 million Series C led by Index Ventures and a $40 million Series B co-led by New Enterprise Associates and Figma CEO Dylan Field. The San Francisco-based company runs a members-only network for travelers who exchange stays in one another’s homes.

Paris-based Naboo raised a $70 million Series B in February. Led by Lightspeed Venture Partners, the round also included Notion Capital, Isai and Ternel. Naboo uses AI to help businesses find venues, arrange corporate events and manage purchasing and payments.

Together, the deals show that this year’s larger rounds have gone to businesses with distinct operating models, from hotel software and event services to home exchanges and aircraft development. AI features appear in several of them, but the funding totals don’t show whether those features alone are driving investor interest.

Company sales and a withdrawn offering

Company sales have provided another route for travel tech startups to find a larger home. In February, Amadeus acquired corporate travel AI assistant SkyLink. In July, Expedia acquired AI trip-planning startup Layla. Both deals extend established travel companies’ AI capabilities. Expedia also completed its purchase of Tiqets, a booking platform for museums, attractions and experiences, in February.

The public-market path proved less certain for travel experiences platform Klook, which withdrew its planned U.S. offering in October after filing the previous November. Its decision adds a different signal to a year with fewer startup financings: a planned public listing doesn’t guarantee a completed exit.

Publicly traded corporate travel and expense management company Navan has had a stronger stock performance. Formerly called TripActions, it began trading on Nasdaq under NAVN in October 2025. Its stock closed at $27 on Oct. 28, up about 58% from its Dec. 31 closing price of $17.08 and 8% above its $25 offering price. Much of this year’s gain recovered losses after its listing.

For the sector, the clearest indicators to watch are whether funding and deal counts stabilize, and whether AI-focused products translate into sustained customer demand or further company sales. This year’s figures capture a broad retreat in startup financing alongside selective large rounds and continued activity among established travel firms.

Related Crunchbase query

• Funding To Travel-Related Startups

Illustration: Dom Guzman