Key Takeaways
- • Travel tech startups raised $2.2 billion across 302 funding rounds in the first three quarters of 2026, according to Crunchbase data, down sharply from $3.7 billion raised in all of 2025.
- • Deal volume is on track to fall for a third consecutive year, with capital concentrating in fewer companies; 2026 could mark the lowest funding level since at least 2018 by dollars raised and deal count.
- • Mews led the year's funding with a $300 million Series D led by EQT Growth at a $2.5 billion valuation, while several of the largest deals went to non-U.S. startups.
- • Established travel companies are buying AI-focused startups, with Amadeus acquiring SkyLink in February and Expedia acquiring Layla in July and completing its Tiqets acquisition in February.
- • Klook withdrew its planned U.S. IPO in October after filing in November 2025, while Navan's stock has risen about 58% year to date, closing at $27 on Oct. 28.
Summary
Travel tech funding is heading toward a multiyear low in 2026 even as many startups in the sector position AI as a core part of their offerings, according to Crunchbase News. Startups in the space raised $2.2 billion through the third quarter across 302 rounds, a significant decline from the $3.7 billion raised in 2025. Deal volume is also on track to decline for a third straight year, indicating that investors are concentrating larger checks in fewer companies. Crunchbase data indicates that 2026 could be the lowest year since at least 2018 for both dollars raised and deal count. Funding levels remain well below prior benchmarks: the sector topped $12 billion in 2021, and totaled $9.4 billion across 1,277 deals in 2018 and $10.4 billion across 1,190 deals in 2019.
The largest recipients span hotel management software, booking platforms, alternative accommodations, corporate events, electric aviation, and travel finance and insurance. AI is a recurring theme among them, used for automating hospitality operations, personalizing bookings, and streamlining trip planning. Amsterdam-based Mews, the year's largest recipient, raised a $300 million Series D in January led by EQT Growth, with participation from Atomico, HarbourVest Partners, Kinnevik, Battery Ventures and Tiger Global Management. Other major rounds included Chinese electric aircraft developer Aerofugia's roughly $144 million raise in February led by CITIC Securities, Montreal-based Stay22's $122 million minority growth investment from Summit Partners, San Francisco-based Kindred's $85 million Series C led by Index Ventures alongside a $40 million Series B, and Paris-based Naboo's $70 million Series B led by Lightspeed Venture Partners.
Exit activity has been mixed. Amadeus acquired corporate travel AI assistant SkyLink in February and Expedia acquired AI trip-planning startup Layla in July, both reflecting established travel companies buying AI capabilities. Expedia also completed its acquisition of Tiqets in February. On the public markets side, Klook withdrew its planned U.S. offering in October after filing the previous November. Navan, formerly TripActions, has been a bright spot, with its stock up about 58% in 2026 to $27 as of Oct. 28, still 8% above its $25 IPO price. Skift, in a recent newsletter, described the funding downturn as "a clear sign of the times" while cautioning it is too early to call it a long-term trend.
The largest recipients span hotel management software, booking platforms, alternative accommodations, corporate events, electric aviation, and travel finance and insurance. AI is a recurring theme among them, used for automating hospitality operations, personalizing bookings, and streamlining trip planning. Amsterdam-based Mews, the year's largest recipient, raised a $300 million Series D in January led by EQT Growth, with participation from Atomico, HarbourVest Partners, Kinnevik, Battery Ventures and Tiger Global Management. Other major rounds included Chinese electric aircraft developer Aerofugia's roughly $144 million raise in February led by CITIC Securities, Montreal-based Stay22's $122 million minority growth investment from Summit Partners, San Francisco-based Kindred's $85 million Series C led by Index Ventures alongside a $40 million Series B, and Paris-based Naboo's $70 million Series B led by Lightspeed Venture Partners.
Exit activity has been mixed. Amadeus acquired corporate travel AI assistant SkyLink in February and Expedia acquired AI trip-planning startup Layla in July, both reflecting established travel companies buying AI capabilities. Expedia also completed its acquisition of Tiqets in February. On the public markets side, Klook withdrew its planned U.S. offering in October after filing the previous November. Navan, formerly TripActions, has been a bright spot, with its stock up about 58% in 2026 to $27 as of Oct. 28, still 8% above its $25 IPO price. Skift, in a recent newsletter, described the funding downturn as "a clear sign of the times" while cautioning it is too early to call it a long-term trend.
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