Travel tech investment is heading toward its lowest level in years. According to Crunchbase News, startups in the sector raised $2.2 billion worldwide between January and September 2026, across just 302 rounds. By the outlet’s math, 2026 could close as the weakest year since at least 2018, both in dollars and in number of deals. And this is happening right when AI in tourism has become the big bet for many new companies.
It helps to understand the scope. Crunchbase News uses a broad definition of travel tech. It covers hotel software, booking platforms, alternative lodging, corporate events, electric aviation, travel finance and insurance, and consumer-facing hospitality businesses. In other words, the drop is not limited to one niche. It shows up across the sector as a whole.
Comparing with past years shows how big the pullback is. For all of 2025, according to the outlet, the sector raised $3.7 billion. In 2021, it topped $12 billion. Crunchbase News itself finds that figure a bit surprising, since much of the world was not traveling because of the pandemic. Before covid, the totals were also much higher: $9.4 billion across 1,277 rounds in 2018 and $10.4 billion across 1,190 rounds in 2019.
There is another key data point. The outlet notes that the number of rounds is set to fall for the third year in a row. That points to a market where investors put more money into fewer companies. Fewer bets, bigger checks.
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The odd part is the mismatch. Travel demand looks strong, according to Crunchbase News, but investor appetite for travel startups has cooled. Skift, a travel industry research company cited in the report, also noted the drop in a recent newsletter. In its view, the decline is a clear snapshot of the moment, though it is still too early to say whether it marks a long-term shift.
AI is behind the biggest checks, but it has not turned things around
AI shows up often among the companies that raised the most in 2026. According to the outlet, many of them use the technology to automate hospitality operations, personalize bookings and make trip planning simpler. Even so, this wave has not been enough to reverse the slowdown.
The largest deal of the year through September, according to Crunchbase News, went to Mews, based in Amsterdam. The hotel software company helps hotels manage bookings, payments and operations. In January, it closed a $300 million Series D led by EQT Growth, at a $2.5 billion valuation. Its stated plan is to expand the use of AI agents to automate workflows. That move is similar to what we have covered on the use of artificial intelligence and automation in travel management.
Canada’s Stay22, from Montreal, got a $122 million minority investment from Summit Partners in February. The startup uses AI to help creators, publishers and event organizers turn audience interest in travel into bookings and affiliate revenue. For people who work in content marketing, it is a model that fits nicely with having an audience already in place.
France’s Naboo, based in Paris, also raised a $70 million Series B in February, led by Lightspeed Venture Partners. The company uses AI to help businesses find venues, organize corporate events and handle the purchasing and payments tied to them.
The list goes on. Kindred, a members-only home swap network from San Francisco, announced an $85 million Series C led by Index Ventures. On the same day, it disclosed a $40 million Series B, for a total of $125 million, according to the outlet. China’s Aerofugia, based in Chengdu, raised about $144 million to develop electric vertical takeoff aircraft, also known as air taxis. One detail stands out: several of the biggest deals went to companies based outside the United States.
What this signals for anyone looking to start a tourism business in Brazil
The report does not include data on the Brazilian market, so the picture calls for a careful read. One possible take is that with venture capital for startups in tourism getting more selective, putting AI in the pitch may matter less than showing a real problem solved well. For anyone thinking about starting a tourism business in Brazil, technology seems to work better as a tool than as the main selling point.
The categories that did get funded offer some clues. Hotel software, corporate events and audience monetization all have a clearly defined customer and a gain you can measure. Picture, just as an example, a small inn that loses hours matching up bookings from several channels. A tool that fixes that has a value that is easy to explain. If you are building a product, you can draw ideas from cases of artificial intelligence and business automation in startups that tackle concrete tasks.
It is also hard to pin down why the market pulled back. Crunchbase News itself leaves open whether uncertainty about how AI will change trip planning and booking helps explain investor caution. That question is still unanswered.
For now, the picture is one of eager travelers and cautious investors, with capital concentrated in a handful of travel startups. To see how this trend compares with other fields, keep an eye on what is happening with deep tech innovation with AI and venture capital in 2026.
