Travel Tech Startup Funding Hits Multiyear Low Despite AI Push
Crunchbase data shows travel tech startups raised $2.2B in the first three quarters of 2026, down from $3.7B in 2025, as investor appetite cools despite widespread AI adoption.
According to Crunchbase data, global travel tech startups raised $2.2 billion across 302 funding rounds in the first three quarters of 2026. This represents a significant drop from the $3.7 billion raised in 2025, with deal volume declining for a third consecutive year, indicating that investors are putting more money into fewer companies.
Despite a wave of startups promising to improve travel planning and booking with AI, this trend has not reversed the funding slowdown. For instance, Amsterdam-based hospitality software company Mews closed a $300 million Series D led by EQT Growth in January at a $2.5 billion valuation, and Chinese electric aircraft developer Aerofugia raised about $144 million in February. However, these large deals failed to boost overall sector investment heat.
Meanwhile, established travel companies are acquiring startups to enhance their AI capabilities. Amadeus acquired corporate travel AI assistant SkyLink in February, while Expedia bought AI trip-planning startup Layla in July. This M&A activity reflects industry consolidation rather than a recovery in independent startup funding capacity.