Sector Snapshot: Travel Tech Funding Heads Toward Multiyear Low Despite AI Push
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. We share what a review of Crunchbase data shows.
Travel tech funding is on a multiyear low despite a push towards artificial intelligence, according to data from Crunchbase. The sector raised just $2.2 billion through the third quarter of 2026, down significantly from $3.7 billion raised in all of 2025. The slowdown reflects a market where investors are making far fewer bets on travel startups compared to the pre-pandemic era.
AI is being utilized by many of the largest funding recipients to automate hospitality operations, personalize bookings, and streamline travel planning. Notable deals included Mews, a hospitality software company, which raised $300 million in a Series D round led by EQT Growth. Other significant investments went to Chinese electric aircraft developer Aerofugia, Stay22, a travel AI startup, and Kindred, a home-swapping platform.
Despite these funding rounds, the downturn in startup funding and lack of IPOs hasn't deterred some established players, like Navan, whose stock rose nearly 60% this year.
Written by urgent.news from Crunchbase News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
