Funding for Travel Startups on the Rise in Q1 2024

Travel startups have seen a resurgence in funding in the first quarter of 2024, with a total of $1 billion invested in new entrants. This marks a significant increase from the previous year’s first quarter figure of $420 million. The funding has been distributed across various sectors within the travel industry, including mobility companies like InDrive and Moove, as well as companies focusing on micromobility such as Voi. Additionally, vacation rental startups like Bob W and Overmoon have also received substantial funding.

The increase in funding for travel startups comes at a time when the industry is experiencing interesting changes, with newcomers entering the corporate travel space and significant consolidation taking place. Notable rounds in the first quarter of 2024 include TravelPerk’s Series D1 funding of $104 million and Tumodo’s $35 million pre-seed round. The quarter also saw the announcement of a travel technology fund for Europe called TravelTech.vc, which aims to invest €50 million in 10 companies.

Consolidation has been a key theme in the first quarter, with American Express Global Business Travel’s plan to acquire rival CWT for $570 million leading the way. Experts predict that 2024 could be the biggest year ever for mergers and acquisitions in travel technology, driven by the need for companies to adapt and transform their business models.

Despite the positive trend in funding and M&A activity, some companies have not been as fortunate. Journera and Cabana, both promising startups in the travel industry, announced their shutdowns in early 2024. The challenges faced by these companies serve as a reminder of the competitive and ever-evolving nature of the travel startup landscape.