Travel demand appears to be holding up, but at the same time, investor appetite for travel tech startups has cooled. Even a wave of startups promising to improve travel with AI hasn't managed to reverse the funding slowdown, a review of Crunchbase data shows. Whether uncertainty over how AI will reshape travel planning and booking is contributing to that pullback remains an open question. Startups in the travel tech space have raised $2.2 billion this year through the third quarter, according to Crunchbase data. The largest funding recipients span a wide range of categories including hotel management software, travel booking platforms, alternative accommodations and corporate events. The mix also includes electric aviation, travel finance and insurance, and consumer hospitality businesses, reflecting a broad definition of travel tech. The broad trend: Investors are making far fewer bets on travel startups than immediately before and after the COVID-19 pandemic, Crunchbase data...
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