Travel Tech Funding is heading toward a multiyear low, even as startups pitch artificial intelligence tools for planning trips and running hospitality businesses. Companies in the sector raised $2.2 billion across 302 rounds in the first three quarters of 2026, according to Crunchbase data.
That total is below the $3.7 billion raised in 2025. Deal volume is also on track to fall for a third consecutive year, leaving investors backing fewer companies. The pullback comes despite steady travel demand and a stream of startups applying AI to bookings, hotel operations and travel planning.
Crunchbase’s review says this year could mark the sector’s lowest funding dollars and deal count since at least 2018. The downturn spans a broad definition of travel technology, including hotel software, booking platforms, alternative accommodations, corporate events, electric aviation, travel finance, insurance and consumer hospitality.
Travel Tech Funding Remains Below Earlier Peaks
Travel Tech Funding remains well below earlier peaks. The recent totals are far below the sector’s earlier funding levels. Travel technology startups raised more than $12 billion in 2021, despite widespread travel disruption during the COVID-19 pandemic. Funding reached $9.4 billion across 1,277 deals in 2018 and $10.4 billion across 1,190 transactions in 2019.
Skift also noted the downturn in a recent newsletter, writing, “Though it’s too early to say whether this is a long-term market movement, it’s a clear sign of the times.” Crunchbase said it remains an open question whether uncertainty about AI’s effect on travel planning and booking is contributing to the funding pullback.
Several of 2026’s largest rounds went to companies based outside the United States. Amsterdam-based Mews led through the third quarter with a $300 million Series D in January. EQT Growth led the round, with participation from Atomico, HarbourVest Partners, Kinnevik, Battery Ventures and Tiger Global Management.
Mews provides hotel reservation, payment and operations software. The company said it plans to expand its use of AI agents to automate workflows. The financing valued Mews at $2.5 billion.
Other large rounds included about $144 million for Chengdu-based electric aircraft developer Aerofugia and a $122 million minority growth investment in Montreal-based Stay22. Aerofugia’s February financing was led by CITIC Securities, with New Alliance Capital, Vertex Ventures China and other investors joining. Stay22 uses AI to help publishers, creators and event organizers turn audience interest in travel into bookings and affiliate revenue.
Related coverage includes the Travel Tech Capital Summit, AI tools for travel disruptions and Dubai’s future mobility partnership.
Travel Startups Also Found Buyers
Acquisitions offered another path for travel startups this year. Amadeus acquired corporate travel AI assistant SkyLink in February, while Expedia acquired AI trip-planning startup Layla in July. Expedia also completed its acquisition of booking platform Tiqets in February.
Travel experiences company Klook withdrew its planned U.S. offering in October after filing the previous November. Meanwhile, corporate travel booking and expense platform Navan saw its stock rise nearly 60% this year, according to the source. Its shares closed at $27 on Oct. 28, up about 58% from the Dec. 31 closing price of $17.08 and 8% above its $25 IPO price.
The available figures show a funding market with fewer deals than in recent years, alongside acquisitions and a public-market gain for Navan. Crunchbase’s review covers the first three quarters of 2026, so the full-year funding and deal totals remain unresolved.
