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Funding & Investment in Travel

Tracking travel startup investment trends in 2023

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There is no denying that 2023 has been another tough year for travel startups. 

The more cautious approach from investors seen in 2022 tipped into 2023. Just a quarter into the year, total investment (including autonomous vehicle companies) stood at $421 million, a 95% drop from Q1 2022’s figure of $8.9 billion, according to Phocuswright research. The year end’s total funding at around $3.6 billion for travel startups is quite a distance from the roughly $14 billion invested in 2022.

Uncertainty in financial markets, amid rising interest rates and job cuts across the wider technology industry, was intensified by the collapse of Silicon Valley Bank.

In a recent LinkedIn post, Lawrence Leuschner, CEO of Tier Mobility, announced it was shedding 22% of its workforce. Summing up the climate for travel startups, he said, “It has been an incredibly hard year for the majority of entrepreneurs, start-ups and scale-ups. This also applies to us at Tier Mobility. High inflation and the cost of living crisis have dominated the news in 2023, and the knock-on impacts of reduced consumer demand and confidence makes for a difficult business environment. Nearly every business that was previously focused on growth and expansion has written or spoken about the sharp pivot we’ve had to make to focus on profitability.”

That said, many startups have attracted investment in the past year, and the top investors in travel technology from January 2022 to the end of the first quarter of 2022 committed tens of millions to the sector. Investors mainly cited total addressable market as the reason for making an investment.

Fast forward to mid-December and many startups have weathered the storm and demonstrated if not actual profit, then at least a path to profitability. This is most true in hospitality-focused companies where the market continues to be seen as having huge potential for growth.

Hotel and rentals tech focus

Hospitality and property technology companies ranging from startups offering tech-driven stays and real estate investment companies to mixed-use developments and B2B tech players continue to attract investors. Kasa Living, Placemakr and Fractal Homes attracted $70 million, $65 million and $30 million, respectively, while Outsite raised $300 million to invest in real estate. Meanwhile, Numa raised $59 million and Habyt raised $40 million for its co-living concept. 

Home-swapping platforms were also in the spotlight, with Kindred and Holiday Swap both securing $15 million in funding.

Also worth watching are startups from current and former Airbnb employees, including Samara, which raised $41 million for its pre-fabricated houses concept, and Summer, the rent-to-own startup, which raised $18 million plus a $50 million debt facility.

On the vacation rental technology front, Hostaway secured $175 million with an eye on acquisitions, and property management technology company Missafir landed $26 million. And Operto, which specializes in automation technology for hotels and rentals, added $25 million to its war chest.

Hotel technology players also made headlines with Hyperguest securing $23 million in July, while Stayntouch, a specialist in property management technology, recently received a $48 million investment

Not all startups in the hospitality category fared well, however, with Casai calling it quits in July, with founder and CEO Nico Barawid citing “an investment drought with a model no longer favored by VC [venture capital] investors to produce venture returns,” among reasons for the company’s demise. 

Experience everything

Earlier this month tours and activities provider Klook announced $210 in funding and said it had achieved overall profitability. Meanwhile, GetYourGuide attracted $194 million in funding in June and said in September it had turned a profit in the quarter. 

And with such significant sums being invested in late rounds, some have questioned whether a public listing or acquisition might be on the cards in 2024.

With a slightly different focus than the above companies, Fever, which enables the discovery and booking of events in cities, secured $110 million funding. And map-based platform Atly, which helps users find places to go and things to do, raised $18 million.

A number of B2C online travel players also attracted investment: Worldia, €25 million, WeRoad, €18 million, and Traveligo (now called Gother), $25 million.

Expense management

Corporate travel startups did not attract the levels of investment of previous years with the notable exception of corporate spend management startup Ramp, which had a $300 million round. Onfly, a business travel booking and expense management startup, attracted $16 million, while BizAway, which is also focused on corporate travel management, secured €10 million. More recently, Center, also working to drive efficiency in expense management, landed $30 million.

Startups often rolled under the fintech banner also piqued investor appetite, with payments provider Terrapay landing $100 million early in the year, and Southeast Asia’s YouTrip adding $50 million to its coffers more recently. Providers straddling travel and finance, including credit card startup Yonder and Utu, a company helping travelers with duty-free shopping, raised £62.5 million and $33 million, respectively.

Land and sky

Mobility companies, including emerging electric vertical take-off and landing startups and autonomous vehicles, also piqued investor interest over the course of 2023. Archer secured $215 million in August for its eVTOL development, while Lilium landed $192 million and avoided being delisted from the Nasdaq. Didi Autonomous Driving attracted a $149 million investment, while Cabify looked to electrify its fleet with $110 million in funding. India-based bus technology platform Chalo raised $57 million and transit tech specialist Via raised $110.

Although there have been cutbacks at autonomous vehicle companies in recent weeks, more investment in the area in 2024 can be expected. Other developments to watch out for will be all things artificial intelligence, although that could be more on the mergers and acquisitions side, as with recent deals by Airbnb and Mondee.

2024 trends

Merger and acquisition activity is worth keeping an eye on in 2024. A recent M&A tracker launched by Cambon Partners noted a post-pandemic increase in deals compared with pre-pandemic acquisitions.

Investment in sustainability startups, including sustainable aviation fuel startups such as Metafuels, which just landed $8 million in funding, will continue. A recent study from Amadeus revealed that almost half of companies believe they will invest more in environmental, social and governance initiatives in 2024. Companies like Chooose, which raised $15 million at the beginning of 2023 and helps travel businesses find the best carbon footprint reducing options, will also get attention. Chooose is one of a handful of the PhocusWire Hot 25 startups in 2023 that secured funding.

At The Phocuswright Conference 2023 investors from Inovia, JetBlue Ventures and Highgate Ventures provided insight on whether the boom is dead. The investors discussed the impact of factors such as high inflation and travel demand on startup funding. They also touched on more realistic valuations, how many startups are turning to internal rounds and convertible notes as well as the potential for greater M&A activity in 2024.

Watch the full session moderated by Mike Coletta, Phocuswright manager of research and innovation, below.

The Boom is Dead. Long Live the Boom! Investors – The Phocuswright Conference 2023



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Negotiators Seek To Travel To Yemen; Supreme Court Asks Them To Approach Centre For Permission

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The Supreme Court on Friday allowed the private organisation, which is taking efforts for the release of Malayali woman Nimisha Priya, to approach the Central Government seeking permission to travel to Yemen for negotiations to stall her execution for the murder of a Yemeni national.

The organisation is seeking permission to allow a few of its members and a representative of Kerala Sunni Islamic leader Kanthapuram AP Aboobacker Musaliyar – whose interventions reportedly led to the stay of the execution – to travel to Yemen to meet the victim’s family to further the negotiations. Efforts are underway to negotiate with the victim’s family to persuade them to pardon her after accepting ‘blood money’ as per the Shariat Law.

A bench of Justices Vikram Nath and Sandeep Mehta was hearing a writ petition filed by Save Nimisha Priya International Action Council.

Senior Advocate Ragenth Basant, for the petitioner, informed the bench that the execution, which was scheduled for July 16, was postponed. He submitted that without permisison from the Centre, no Indian can visit Yemen as there is a travel ban in place.

“First step is that the family forgive us, then second stage is blood money. Somebody needs to negotiate with the family. Yemen is a country where not just anybody can go. There is a travel ban unless the government relaxes it. Let 2-3 members of the petitioner and a representative of Kerala Islamic cleric be permitted to go to Yemen. As of now, execution has been stayed. We are thankful to govt of India for all efforts. But we need to go there, there was a revered [Islamic cleric] who intervened…” Basant submitted.

“Ideally, one representative from the government also. If the government deems fit,” Basant added. Attorney General for India R Venkataramani however remained non-committal about Government intervention. “I don’t think anything can formally happen at this time. We will consider but dont put it on record. There is no next date fixed for execution that means something is working.The family and power of attorney only should be concerned with negotiations. I don’t think it will be a different story if the organisation goes there,” the AG said.

We don’t want something counter-productive happening. We want this woman to come out safely,” AG added.

The bench said that it was not expressing anything on the demand and allowed the organisation to file a representation before the Government. The bench adjourned the hearing, posting the matter for August 14.

To recap, 36-year old Nimisha Priya is facing death sentence for the murder of a Yemeni national in 2017, who allegedly tortured and assaulted her. To retrieve her documents, including passport, from the Yemeni man’s possession, Priya apparently tried to sedate him using ketamine, but unfortunately, an overdose caused his death.

Earlier, Priya was scheduled to be executed on July 16. On July 14, the petitioner-organization prayed before the Supreme Court for Union’s support to negotiate a pardon for Priya through diplomatic interference. The Union, however, categorically said that its role in the matter was limited, given where Priya is lodged (Houthi-controlled Sanaa). Be that as it may, it assured that “utmost possible” efforts were being made by the government at private level to prevent Priya from the gallows. During the hearing, Justice Mehta noted that the case was “sensitive” in nature and indeed a “sad” one.

Thereafter, a day before Priya’s scheduled execution, reports came in that the execution had been postponed with the help of private interventions. The reprieve however was short-lived, as the family of the victim-Talal Abdo Mahdi, whom Priya is accused of killing, came out with a statement that theyvwill not grant pardon to Priya.

Nimisha Priya, an Indian origin nurse from Kerala, was sentenced to death in 2018 for the murder of Yemeni national Talal Abdo Mahdi. As per claims, Talal was Nimisha Priya’s business partner but forged documents to show that she was his wife. Allegedly, he even seized her passport and subjected her to physical and mental torture. One day, in 2017, she injected him with sedatives to retrieve her passport. Unfortunately however, Talal died and Nimisha Priya was sentenced to death.

Pursuant to a challenge, Nimisha Priya was tried again. But in 2020, she obtained the same verdict. At that point, the petitioner-Council was formed by her relatives and supporters to secure her release. In 2023, Yemen’s Supreme Judicial Council rejected an appeal preferred by Nimisha Priya. Last year, the Yemeni President approved her death sentence.

Recently, the petitioner-organization filed the present petition seeking directions to the Union Government to secure her release from Yemen through diplomatic channels. The petitioner highlighted that as per Shariat law, a person can be released if the relatives of the victim agree to accept “blood money” and negotiations can be held to explore that option.

Lately, Nimisha Priya’s family offered to pay 1 million dollars (Rs.8.6 crores) to Talal’s family as ‘blood money’, a compensation for pardoning her and sparing her life.

Earlier, Nimisha Priya’s mother had approached the Delhi High Court seeking permission to travel to Yemen to make efforts for her release. Responding to that petition, the Central Government informed the High Court in November 2023 that the Supreme Court of Yemen had dismissed her appeal. Taking note of that development, the High Court directed the Central Government to take a decision on the mother’s representation. The mother had sought permission to travel to Yemen despite a ban on Indian nationals to travel there.

Case Title: SAVE NIMISHA PRIYA INTERNATIONAL ACTION COUNCIL Versus UNION OF INDIA AND ANR., W.P.(C) No. 649/2025





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Incheon Airport tells passengers to arrive 3 hours early as peak travel season arrives

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Travelers move through Incheon International Airport on Jan. 23, ahead of the Lunar New Years holiday. [YONHAP]

 
With the peak summer travel season around the corner, Incheon International Airport is gearing up for a rush of passengers, warning travelers to arrive 30 minutes to an hour earlier than usual — about three hours before departure — to avoid missing flights. 
 
Between July 25 and Aug. 10, an estimated 3.87 million travelers are expected to pass through Incheon, averaging 228,000 passengers per day, the Incheon International Airport Corporation (IIAC) said Thursday. That’s a 4 percent jump from the Lunar New Year holiday rush, typically one of Korea’s busiest travel periods. 
 
 
To manage the surge, airport authorities will open several security checkpoints earlier than usual. From July 23 to Aug. 4, Terminal 1’s Departure Gates 2 and 4 and Terminal 2’s Gate 2 will begin operating 30 to 60 minutes ahead of schedule. Terminal 2’s Gate 1 will get two new security screening machines, and 67 additional security staff will be deployed.
 
Other measures include expanding “Smart Pass” fast-track lanes, which are only available for Korean passports, adding self-service bag drop stations and running select airport shops around the clock. Parking management will be more flexible, and late-night bus services will be increased to ease crowding. 
 
“We will operate the summer peak period with a focus on passenger convenience and safety,” said Lee Hag-jae, CEO of the IIAC. “We are preparing for an era of 100 million annual passengers by advancing digital transformation and expanding our global network.”
 

Incheon International Airport Terminal 1's parking lot is packed on Jan. 23, ahead of the Lunar New Year holiday. [YONHAP]

Incheon International Airport Terminal 1’s parking lot is packed on Jan. 23, ahead of the Lunar New Year holiday. [YONHAP]

 
Domestic airports, including those serving popular destinations like Jeju Island, are also rolling out special travel plans. The Korea Airports Corporation (KAC) estimates 4.31 million passengers and 24,067 flights will move through local airports over the same period. That averages out to 1,416 flights and 253,000 travelers per day, up slightly from the 1,365 flights and 238,729 travelers in the same period last year.
 
The busiest days are forecast to be July 25 at Gimpo Airport, July 26 at Gimhae Airport and Aug. 4 at Jeju International Airport.
 
To cope with the expected surge, KAC will open check-in counters earlier, increase security and ID verification operations and expand staffing at immigration checkpoints. It has also secured 5,910 additional parking spaces and plans to boost on-site personnel by 40, bringing the total to 2,046 staff during the peak season.
 
“We’ve prepared an emergency safety plan in anticipation of increased passenger traffic during the peak summer travel season,” said Son Jong-ha, head of operations at KAC. “We’ll do our best to ensure travelers experience minimal inconvenience by deploying additional on-site staff.”
 

Travelers move through Incheon International Airport on Feb. 27. [NEWS1]

Travelers move through Incheon International Airport on Feb. 27. [NEWS1]

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY PARK YOUNG-WOO [[email protected]]





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Visa-free visits and outbound travel boost mutual understanding

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Cai Meng / China Daily

Still hesitating about traveling to, studying in or doing business with China? The following numbers might help change your mind.

In the first half of 2025, foreign nationals made a total of 38.05 million trips to or from China, an increase of 30.2 percent year-on-year, the National Immigration Administration said on Wednesday. Of these trips, 13.64 million were visa-free entries — which is more than the population of a megacity — up 53.9 percent from the same period last year.

These trips accounted for 71.2 percent of all inbound trips made by foreigners in the first half of the year.

Thanks to a growing list of unilateral visa-free agreements with countries across Europe, Southeast Asia and beyond, it is easier than ever to enter China without excessive paperwork. China’s 240-hour visa-free transit policy allows travelers from 55 countries to transit through China without a visa for up to 240 hours.

On the other hand, the number of Chinese citizens traveling abroad has also risen rapidly. This increased two-way movement of people is helping other countries better understand China.

The impact is already visible in international perceptions. A new Pew Research Center survey, released on Tuesday and based on responses from more than 30,000 people across 25 countries, reveals several key shifts in global attitudes toward China. Conducted between Jan 8 and April 26, the study found that compared to last year views about China have turned favorable in 15 of the 25 countries surveyed.

One of the most notable trends is generational. In most countries, younger people are more positive about China than older respondents. This younger demographic is also more likely to form opinions based on direct experiences, social media content and peer networking, rather than through legacy media narratives or assumptions.

In addition, more people now see China as the world’s leading economic power, a marked change from Pew’s 2023 survey and a reflection of China’s growing global influence through innovation, trade and high-quality development.

These changing views reflect a reality many are discovering firsthand. The China of today is dynamic, forward-looking and deeply engaged with the world. From high-speed rail networks and AI-driven cities to vibrant cultural festivals and thriving innovation hubs, China offers not only modern infrastructure but a new model of development, one that emphasizes quality, sustainability and openness.

And this openness is intentional. China is advancing high-level opening-up not just through policy, but through action. It is about more than trade and investment, it is about encouraging people-to-people exchanges, educational partnerships, tourism and shared innovation. Whether it is easier visa access, multilingual services at airports and train stations, or international cooperation zones, the door to China is wide open and increasingly welcoming.

What is also helping is China’s role as a source of stability and certainty in a turbulent global landscape. At a time when many regions are facing economic headwinds and geopolitical tensions, China’s long-term development strategies, policy consistency and emphasis on peaceful cooperation stand out. Its approach to modernization, rooted in national conditions, yet globally connected, is being recognized as both effective and inspiring.

The result? A growing number of international visitors are not just impressed, they are surprised. Many describe the China they encounter as “unexpected”, “fascinating” or even “cool”. This is a country breaking through cliches and showing the world what modernization with Chinese characteristics really looks like and how it can offer new ideas for global development.

So, if you are still wondering whether it is time to explore China, the signs are clear. People are coming. Views are shifting. Connections are deepening.



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