Travel tech funding hits multiyear low despite AI integration

Investment in travel technology startups has slowed significantly throughout 2026, with data from Crunchbase indicating a shift in investor sentiment. Across the first three quarters, the sector secured $2.2 billion globally across 302 funding rounds, a decline from the $3.7 billion recorded during the same period in 2025.

This cooling trend follows a broader market contraction, with deal volume on track to fall for the third consecutive year. Funding totals remain far below pre-pandemic levels; in 2018 and 2019, the sector consistently drew between $9 billion and $10 billion annually. Current data suggests investors are opting for fewer, more selective bets, even as startups highlight AI-driven automation for hospitality and travel planning.

Major capital raises this year include Amsterdam-based Mews, which secured $300 million, and Chengdu-based Aerofugia, which raised $144 million. Meanwhile, M&A activity remains a primary exit strategy, as companies like Expedia and Amadeus acquire smaller AI-focused startups to bolster their existing platforms.

Public market appetite remains limited, highlighted by Klook’s decision to withdraw its U.S. offering in October. In contrast, corporate travel platform Navan, which went public in late 2025, has bucked the downward trend, with its shares rising nearly 60% so far this year.