Travel demand has held up, but startup financing hasn’t followed. Travel tech companies raised $2.2 billion through the first three quarters of 2026, and the deal count suggests investors are becoming more selective even as AI features draw attention. Whether uncertainty about AI’s effect on travel planning and bookings is contributing to the slowdown remains unclear.
Crunchbase data puts the sector on track for its weakest year since at least 2018 in both funding and deal volume. The 302 rounds recorded through Q3 are well below the 1,277 deals in 2018 and 1,190 in 2019. Funding that year reached $9.4 billion and $10.4 billion, respectively.
The shift: This year’s $2.2 billion is down from $3.7 billion in 2025, while deal volume is on course to decline for a third straight year. The pattern points to fewer companies securing capital, even as several large rounds keep the sector’s funding total from falling as sharply as deal activity.
The contrast with 2021 is striking: travel tech startups raised more than $12 billion that year, despite pandemic-era disruption to travel. Funding and deal activity have since retreated well below that peak. Travel industry researcher Skift described the change in a recent newsletter: “Though it’s too early to say whether this is a long-term market movement, it’s a clear sign of the times.”
Large rounds span software, lodging and aviation
The biggest financings show how widely the category is defined, covering hotel operations, home exchanges, event services and electric aircraft. Several of the top recipients are based outside the United States.
Amsterdam-based Mews led the list, raising $300 million in a January Series D led by EQT Growth. Atomico, HarbourVest Partners, Kinnevik, Battery Ventures and Tiger Global Management also participated. The hotel software provider handles reservations, payments and operations, and says it intends to extend its use of AI agents to automate workflows. The round valued Mews at $2.5 billion.
China’s Aerofugia raised about $144 million in February. The financing was led by CITIC Securities, with New Alliance Capital, Vertex Ventures China and other investors joining. Based in Chengdu and backed by automaker Geely, the company develops vertical takeoff and landing electric passenger aircraft, often described as flying taxis.
Montreal-based Stay22 received a $122 million minority growth investment from Summit Partners in February. Its AI tools help publishers, creators and event organizers convert audience interest in travel into bookings and affiliate revenue.
Kindred, a San Francisco home-swapping network for members, announced an $85 million Series C led by Index Ventures. The February announcement also disclosed a $40 million Series B co-led by New Enterprise Associates and Figma CEO Dylan Field, for $125 million in combined funding.
Paris-based Naboo raised a $70 million Series B in February, led by Lightspeed Venture Partners, with Notion Capital, Isai and Ternel participating. Its software uses AI to help businesses find venues, arrange corporate events and handle related purchasing and payments.
Acquisitions offer an exit route as IPO plans stall
Established travel companies have been buying AI capabilities. Amadeus acquired corporate travel assistant SkyLink in February, and Expedia bought trip-planning startup Layla in July. Expedia also completed its acquisition of Tiqets, which books museum visits, attractions and experiences, in February.
Public-market prospects were less certain for Klook. The travel experiences platform withdrew its planned U.S. offering in October, after filing the previous November.
One listed company has posted a strong share-price recovery. Corporate travel and expense platform Navan, formerly TripActions, began trading on Nasdaq under NAVN in October 2025. Its shares closed at $27 on Oct. 28, up about 58% from the Dec. 31 close of $17.08 and 8% above the $25 IPO price. Much of the year’s gain has therefore recouped losses after the listing.
The financing data and exit activity point to a sector where capital is harder to secure, while strategic buyers still see value in specific products and capabilities. AI is appearing in both large funding rounds and acquisitions, but so far it hasn’t reversed the broader decline in startup dealmaking.
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Illustration: Dom Guzman
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