2024’s Travel Startup Revolution: Record-Breaking Funding Unveiled!

2024 marked a record-setting year for fundraising among startups in the travel sector.

Skift monitored over 200 startups that collectively raised $13.1 billion. When excluding the anomaly — Waymo, which secured $5.5 billion — the adjusted total of $7.6 billion was over twice the figure from 2023, even with a roughly equal number of overall agreements.

Lighthouse, a technology platform assisting hotels in rate setting and other functions, achieved the largest fundraising for a travel tech company, amassing $370 million.

Skift tracked these fundraisings via a weekly summary article, which was synthesized from corporate announcements and exclusive reporting.

Although the total amount is significant, the real figure is likely higher. This is attributed to some startups choosing not to announce their fundraising efforts and others not revealing the amounts raised. Additionally, our tracking does not encompass all global markets.

Presented below is an outline of key raises, funding patterns, and other significant advancements from 2024. (Is your travel startup fundraising in 2025? Inform us.)

Technology to Modernize Airlines, Hotels, and Business Travel

The funding acquired by Lighthouse was amongst multiple deals in 2024 that surpassed anything seen in the industry for years. Furthermore, it was the sole travel tech firm in 2024 to attain unicorn status, indicating it achieved a valuation exceeding $1 billion.

Prior to Lighthouse securing its funding, the airline retail technology startup Flyr had the largest deal at $225 million in venture capital. Later, Hostaway raised $365 million, which was reported as the largest fundraising for short-term property management tech by Skift.

Later-stage startups, like these, predominantly led the largest fundraising ventures, showcasing investor inclination towards established startups with validated business models.

Even when accounting for smaller fundraisings, most attention was directed towards startups aimed at modernizing various sectors within the industry.

In addition to Flyr, numerous startups have been concentrating on the modernization of various airline technology systems and their operations. The same applies to hotel tech: Mews, for instance, raised $110 million for hotel operations software.

Business travel platforms also represented a significant area for both large and small fundraising efforts. Engine and TravelPerk each completed substantial fundraisings last year.

Flying Taxi Startups Compete for Flight

More than a dozen electric aircraft companies amassed over $1.8 billion in 2024, as many of them aim to commence operations in 2026. In 2023, nine firms raised only $600 million.

The majority of these startups are working on developing flying taxis for urban transportation. Archer Aviation is at the forefront of this sector, raising a total of $660 million as it plans to initiate public flights in 2026. The company intends to create an air taxi network within Los Angeles, the Bay Area, and several California airports serviced by Southwest.

Joby Aviation received $500 million from Toyota, which stated that this investment aligns with its goal to reinvent itself as a “mobility company” and to “realize the dream of air mobility for personal or everyday travel.” Skyports, which secured $110 million, is designing a vertiport in anticipation of Joby commencing air taxi operations in Dubai by 2026.

Meanwhile, competitor Lilium is undergoing bankruptcy proceedings after exhausting $1 billion — a sobering illustration of the capital-intensive nature of introducing a new aircraft into service.

Ridesharing

Waymo aspires for travelers to undertake road trips across the U.S. in autonomous vehicles. The firm amassed $5.5 billion for this initiative, making it by far the largest amount raised by a company in the travel sector.

The startup has already been functioning its service in San Francisco, Los Angeles, and Phoenix, as well as offering curbside pickups at Sky Harbor International Airport. It also has a collaboration with Uber, which employs Waymo’s vehicles in these cities through its standard ridesharing service, while aimining to expand to Austin and Atlanta.

Numerous rideshare startups secured funds in 2024, following the success of the colossal Uber. InDrive, a globally popular application, raised $150 million.

Significant capital has also been garnered by companies working in other segments of the industry. For instance, Uber led a $100 million fundraising for Moove, which assists rideshare drivers with vehicle financing.

Additionally, funds have flowed into chauffeur hailing applications — such as Blacklane, which raised $65 million — while Uber enhanced its own offerings for business travelers.

A Flourishing Travel Sector in India

The U.S. topped the list with the most travel startup fundraises, followed by Europe.

India came next in line. The increased share of funding reflects the burgeoning travel industry in the region, as an expanding portion of the population enters the middle class.

Skift identified over 20 travel startups that attracted funding across various sectors: a hostel brand (The Hosteller), luggage brands (like Uppercase), visa application apps (Atlys), vacation rental management (Elivaas), a social media platform (Explurger), and vacation booking portals (such as 30 Sundays).

The largest fundraising was achieved by Oyo, a technology-enabled budget hotel operator and aggregator.

Emerging Areas of Interest

Loyalty: Clients value their loyalty points, and some startups are benefiting from this. Bilt Rewards raised $350 million for a platform granting users travel loyalty points for paying residential rent. Meanwhile, PointMe, a metasearch engine designed to help users find the best value for loyalty points when booking flights, secured $15 million.

Renewable jet fuel: A dozen startups raised funding for various forms of renewable jet fuel as the airline industry targets zero emissions by 2050. Twelve, which counts customers like Alaska Airlines and IAG, had the largest deal at $200 million.

Visa compliance applications: Atlys was among the apps that secured funding to aid users in navigating the increasingly complex process of acquiring travel visas.

Travel logistics applications: Multiple applications received funding to streamline travel logistics for users. This includes companies like Bounce, which enables users to store luggage at local businesses, and Firsty, which assists smartphone users in accessing data more conveniently while traveling abroad.

Community-focused and niche travel: Startups such as NomadHer (catered to solo female travelers) and Much Better Adventures (centered on adventure sports) reflect the demand for targeted and personalized travel experiences.

AI trip planners: Various startups, including Mindtrip and Otto, attained funding for applications and websites that employ generative AI to assist users in planning their journeys. While there was heightened interest in these types of enterprises in 2024, their long-term success remains uncertain.

Top 12 Individual Fundraising for Next-Generation Mobility

This compilation features startups dedicated to progressing the mobility industry. This encompasses those innovating electric aircraft, sustainable jet fuel, and novel rideshare platforms. 

• Waymo, self-driving vehicles for ridesharing: $5.5 billion
• Joby Aviation, aerial taxi: $500 million
• Archer Aviation, aerial taxi: $430 million
• Beta Technologies, electric aircraft: $318 million
• Archer Aviation, aerial taxi: $230 million
• HysetCo, hydrogen-fueled vehicles for rideshare: $212.8 million
• Twelve, sustainable jet fuel: $200 million
• InDrive, rideshare application: $150 million
• Skyports, aerial taxi terminals: $110 million
• Heart Aerospace, hybrid-electric airplane: $107 million
• Moove, financing for rideshare drivers: $100 million
• Eve Air Mobility, aerial taxi: $94 million

Top 12 Individual Fundraising for Travel Technology and Other Startups

This compilation showcases software enterprises aiming to innovate their respective segments within the travel industry. 

• Lighthouse, hotel market analytics technology: $370 million
• Hostaway, short-term property management technology: $365 million
• Flyr, airline retail technology: $225 million
• Bilt Rewards, travel loyalty program: $200 million
• Oyo, technology-driven hotel brand: $172.7 million
• Ramp, corporate expense administration: $150 million
• Bilt Rewards, travel loyalty program: $150 million
• Engine, business travel platform: $140 million
• Guesty, short-term property management technology: $130 million
• Mews, hotel property management system: $110 million
• Visit Group, tours and activities management: $108.3 million
• TravelPerk, corporate travel platform: $104 million

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