Travel Startup Funding in 2023: Trends and Biggest Rounds
Posted: Thu Dec 12, 2024 9:31 am
Over the past year, founders and investors have announced a reduction in investment volumes, but companies in the tourism sector still raised at least $3.7 billion. The material provides an overview of the largest rounds and trends in financing travel startups according to Skift.
Short-term rental
The sector received the most funding in 2023. Skift tracked about 30 startups in the short-term rental market that raised more than $676 million. Among them are booking services, property management platforms, and niche sites.
The sector has grown since the start of the pandemic — largely due to the spread of remote work — and continues to grow.
Some of the startups that have raised funding are targeting the digital nomad market, including Berlin-based Habyt ($42.4 million), a platform where locals and tourists can rent co-living spaces, homes, and hotels.
More niche platforms have also attracted funding, such as Raus from Germany and Unyoked from Australia, which offer high-tech homes in remote locations, as well as Vipio, a service with unique properties such as Freddie Mercury's former country home.
Hotel technologies
In 2023, startups in this area most often raised funds, although Bulk SMS Israel overall the sector did not receive the largest amount of investment.
Skift tracked more than 30 startups in this space that have raised at least $274 million (some of which did not disclose funding amounts). The category encompasses a range of software products and services, such as property management, pricing and revenue, guest communications, and kitchen operations.
The largest round ($48 million) was raised by Stayntouch, a property management system owned by MCR.
New generation aircraft
Nine startups developing next-generation aircraft and components have raised over $603 million.
Regent Craft ($60 million in October) is working on an electric submersible for commercial coastal travel. The first prototype, called the Viceroy, will carry up to 12 passengers and have a range of up to 180 miles. The company aims to have a product in production by the middle of the decade.
ZeroAvia ($116 million in November) is developing a hydrogen-electric jet engine. By the end of 2025, the company plans to release an engine that provides a flight range of about 480 km for aircraft with 9-19 seats.
Corporate tourism
Short-term rental
The sector received the most funding in 2023. Skift tracked about 30 startups in the short-term rental market that raised more than $676 million. Among them are booking services, property management platforms, and niche sites.
The sector has grown since the start of the pandemic — largely due to the spread of remote work — and continues to grow.
Some of the startups that have raised funding are targeting the digital nomad market, including Berlin-based Habyt ($42.4 million), a platform where locals and tourists can rent co-living spaces, homes, and hotels.
More niche platforms have also attracted funding, such as Raus from Germany and Unyoked from Australia, which offer high-tech homes in remote locations, as well as Vipio, a service with unique properties such as Freddie Mercury's former country home.
Hotel technologies
In 2023, startups in this area most often raised funds, although Bulk SMS Israel overall the sector did not receive the largest amount of investment.
Skift tracked more than 30 startups in this space that have raised at least $274 million (some of which did not disclose funding amounts). The category encompasses a range of software products and services, such as property management, pricing and revenue, guest communications, and kitchen operations.
The largest round ($48 million) was raised by Stayntouch, a property management system owned by MCR.
New generation aircraft
Nine startups developing next-generation aircraft and components have raised over $603 million.
Regent Craft ($60 million in October) is working on an electric submersible for commercial coastal travel. The first prototype, called the Viceroy, will carry up to 12 passengers and have a range of up to 180 miles. The company aims to have a product in production by the middle of the decade.
ZeroAvia ($116 million in November) is developing a hydrogen-electric jet engine. By the end of 2025, the company plans to release an engine that provides a flight range of about 480 km for aircraft with 9-19 seats.
Corporate tourism