The travel industry experienced an unprecedented surge in startup funding in 2024, with over $13.1bn raised across more than 200 deals, according to data tracked by Skift.
Even after excluding Waymo’s $5.5bn outlier, the remaining $7.6bn represented more than double the total raised in 2023. This remarkable growth occurred despite the number of deals remaining consistent year-over-year.
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“The travel industry hasn’t seen funding levels like this in years,” said a Skift analyst. The report also acknowledged the likelihood of underreported figures due to undisclosed fundraises and untracked markets.
Among the standout fundraises was Lighthouse, a hotel technology platform, which secured $370m, making it the largest deal for a travel software company in 2024.
The deal propelled Lighthouse to unicorn status, with its valuation exceeding $1bn.
Key players in a transformative year
Beyond Lighthouse, other significant raises reflected a broader push to modernise travel operations. Flyr, an airline retail tech company, secured $225m in venture capital, marking the year’s largest deal for airline technology before Lighthouse’s milestone.
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By GlobalDataMeanwhile, Hostaway, a short-term property management tech firm, raised $365m, claiming the largest fundraise in its sector.
These later-stage startups, already well-established in their respective niches, dominated the year’s funding landscape. “Investors are betting on proven models that can scale rapidly,” one industry observer noted.
Startups in hotel operations, airline retail, and business travel tech were at the forefront of this trend, attracting significant capital to meet the demand for streamlined operations and enhanced customer experiences.
Trends shaping the future of travel tech
The record-breaking year highlights a shift in investor priorities. Funds increasingly flowed toward technologies aimed at operational efficiency and user-centric solutions.
While 2024 was notable for its volume of high-value deals, the total is likely even greater due to the challenges of tracking global markets comprehensively.
As 2025 begins, the travel startup ecosystem appears poised for sustained growth. The question now is whether emerging ventures can capitalise on the momentum and deliver the transformative impact that investors expect.
The extraordinary funding activity underscores the growing confidence in travel technology’s potential to reshape the industry, with companies like Lighthouse and Hostaway leading the charge.
