Travel demand is holding up, but investor appetite for travel tech startups has cooled, with funding falling to a multiyear low despite AI innovation. Startups raised $2.2 billion globally through Q3 2026 across 302 rounds, down from $3.7 billion in 2025. Investors are making fewer bets, potentially marking the lowest funding level since 2018. AI remains a key theme, with startups using it to automate hospitality operations, personalize bookings, and streamline travel planning.
Notable deals include Amsterdam-based Mews, which raised $300 million in a Series D led by EQT Growth, valuing the company at $2.5 billion as it expands AI agent use. Chinese electric aircraft developer Aerofugia secured about $144 million, backed by Geely. Montreal’s Stay22 raised $122 million using AI to convert travel interest into bookings, while San Francisco’s Kindred secured $85 million for its home-swapping platform.
Industry observer Skift noted this funding downturn as a “clear sign of the times,” reflecting broader investor caution in the sector.
Source: Crunchbase News · Summarized by HeadlinesBriefing