While it might seem as if more funds were channeled into travel startups in the third quarter of 2026, the volume of rounds was down, and the majority of investments were under $10 million.
The principles of investment for early stage companies—adding value and solving a problem—continue to apply, as Roger Sharp, chair of Web Travel Group and North Ridge Partners, alluded to at Phocuswright Europe 2026.
And for scaling companies, it is about unit economics, he added.
There’s also the challenge, or opportunity, of artificial intelligence (AI). PhocusWire’s inbox has seen countless emails about the launch AI trip planning startups, many created by one person. Most are likely to fail.
30 Sundays, an India-based AI-powered vacation planning and booking tool, has managed to attract investors’ attention. The startup, which offers users a travel video itinerary service, landed $6.7 million in a Series A round.
But overall, it seems investors are becoming weary, not to mention wary, of AI-native pitches.
Amid this challenging environment, a handful of new and more established travel startups secured funding. Notable among the early stage companies was $1.4 million for tours and activities technology specialist Aloja and $1.9 million for Zerolook, an airfare prediction company.
Meanwhile, airline revenue management tech company TravelX reported a Series A investment, describing it as “substantial” and bringing its total funding to $45 million.
Larger rounds for early stage companies in Q3 were secured by agent platform for hospitality Dextr AI, which landed $6.7 million, and AI Hospitality Group, which landed $7.5 million.
And Entravel Group, which provides white label travel connectivity to fintech platforms, secured $10.5 million in the quarter.
Across the wider travel industry, no single sector stood out for attracting a greater share of funding. Hotel distribution specialist Hyperguest attracted a $25 million investment and payments company Cellpoint announced $34 million in fresh funding.
Fora also announced a sizeable round, securing $60 million for its travel advisors platform while travel protection provider Faye secured $50 million.
One final noteworthy funding story is Booking Holdings' plan to invest $100 million in newly unveiled AI travel agent Vayo.
Acquiring scale
Deals in the mergers & acquisitions arena seemed more abundant, probably reflecting the wider funding squeeze and desire for scale.
There were several headline-making deals, including Omio’s acquisition of Rail Europe, Expedia’s acquisition of Layla and Choice Hotels acquisition of Harvest Hosts.
Most other deals were smaller companies buying up similar businesses or acquiring companies to expand geographically. For example, vacation rental platform Holidu acquired Gites and rental technology specialist Guesty acquired Smily.
There was also consolidation in the tours and activities segment with outdoor activities booking platform Checkyeti acquiring Manawa, an outdoor experiences marketplace and WeTravel acquired Tourwriter.
Flagship Group was also launched with three brands in the portfolio, including WalksDevour, aiming to acquire further companies and become a global platform for day tours.
There was increased activity in the corporate travel sector with Bizaway acquiring Uniglobe, Engine buying Options Travel, Spotnana buying Troop and Navan acquiring BoomPop.