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Travel startup funding and M&A trends in Q2 2025

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If the first quarter of 2025 proved lackluster for travel startup funding with only about $1 billion going into newcomers in the space, the second quarter slipped further.

It seems all the headlines around tariffs as well as the political uncertainty and global conflict may have put investments on hold, with only about $800 million going into travel startups, according to Phocuswright’s Travel Startups Interactive Database.

If funding levels continue along this trend, the total come end of 2025 could be around $4 billion, significantly less than 2024’s $5.5 billion and a far cry from 2021’s record $16 billion.

Travel technology companies that did announce significant rounds in the quarter included Ramp with $200 million, Canary Technologies with $80 million, $60 million for Fora, a PhocusWire Hot 25 Startup for 2023, and €46 million for Holidu. Onfly, a PhocusWire Hot 25 Startup for 2022, also bucked the trend when it announced $40 million in mid-April.

Most other rounds were below the $10 million mark, with the exception of Tern, the travel adviser platform, which secured $13 million in Series A funding in May. Others that managed to unlock investment in the quarter included travel eSIM provider Kolet, which landed $10 million in a Series A round, Chatlyn, which announced €8 million and Unravel, which secured $7 million in Series A funding.

About two-thirds of travel entrepreneurs have acknowledged that the funding climate is either very difficult or somewhat difficult, according to preliminary findings from a global survey shared at Phocuswright Europe last month.

A glance back at the second quarter of 2024 reveals there were more headline grabbers, including Guesty and Fetcherr, for example, landing larger rounds than there have been more recently. That could be down to factors including global economic instability as well as uncertainly around what’s real when it comes to artificial intelligence (AI). 

The ability of travel startups to spin up something more rapidly using AI and AI-driven tools is likely to be making investors think twice about who they’re willing to invest in and how much they should commit.

Marc Andreessen, general partner of Andreessen Horowitz, released some career advice for those living in the rapidly evolving AI era, recently saying, “Series C to E companies are the current sweet spot: enough traction, still lots of upside.”

Enough said? It doesn’t mean travel startups cannot attract pre-seed and seed rounds, but they are few and far between. Juno with $2 million, Travaras with $1.4 million and Airial Travel’s $3 million are three that have managed to attract investment in recent months.

Broadly speaking, the top travel tech investors seem upbeat about the next few years for startup funding.

“I’m optimistic, especially at growth and later stages, but that capital will flow earlier over time. The market has matured. Capital is more travel-literate. Scale outcomes are now real. The path from idea to IPO is clearer, and travel tech has evolved from niche to full-blown category,” said Gaurav Tuli, partner at F-Prime Capital in PhocusWire’s recent top investors in travel tech in 2025 article.

M&A activity

Lack of funding can drive startups to seek an exit through mergers and acquisitions (M&A), but there does not seem to have been a flurry of activity in this area in Q2.

However, Kinnevik, a venture capital company which has invested in TravelPerk and Mews, reported “encouraging” signs of increased M&A activity and potential public listings generally in its Q2 earnings in early July.

Notable acquisitions in the quarter included Marriott’s deal to buy CitizenM for $355 million and Sabre’s deal to offload its hospitality business unit to asset management company TPG for $1.1 billion.

JetBlue Airways selling JetBlue Ventures to aviation investment firm SKY Leasing for an undisclosed sum also caused some chatter in the industry around the current appetite for corporate venturing.

The airline’s CEO Joanna Geraghty said at the time that JetBlue is focused on its “JetForward” strategy, which aims to return the carrier to profitability. 

Further deals in the quarter included Lighthouse scooping up marketing tech specialist The Hotels Network as well as Duetto’s acquisition of HotStats. Elsewhere across the travel industry, Juniper continued its recent spree with the acquisition of RezMagic while HBX, which went public in January, announced it had bought Civitfun.

Although there are rumors of a number of other travel IPOs in the offing, business travel platform Navan has been the only company to confirm recently.

The lack of funding for travel startups as well as the scarcity of exits were discussed during a recent interview with Nick Cocks, founder and managing partner of Singapore-based Velocity Ventures. He touched the current attitude to risk, boardroom paralysis and IPOs being shelved.

See below for the full session with PhocusWire’s Linda Fox:

Phocuswright Europe 2025 Executive Interview: Travel investor sentiment



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Nepal’s Royal Tulip opens Doors

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In a major push to elevate Nepal’s hospitality landscape, Sarovar Hotels—part of the Louvre Hotels Group—has launched Royal Tulip Chitwan, the brand’s premium entry into the country. Situated at the edge of Chitwan National Park, a UNESCO World Heritage Site, the new resort seamlessly blends luxury, nature, and Nepali culture. The opening marks the debut of the Royal Tulip brand in Nepal and signals growing confidence in the country’s tourism potential.

 

Developed by KTM Hospitality (a KTM Group Holdings company), the resort spans over 4 acres and offers 65 upscale rooms and villas. Accommodation options include private Pool Villas, serene Water Villas, and unique Machan-style stays that elevate the guest experience. With a focus on nature-inspired design and top-tier comfort, the resort is positioned as an ideal destination for luxury travellers, wildlife enthusiasts, and honeymooners alike.

 

Royal Tulip Chitwan goes beyond just accommodation, offering world-class facilities like a luxury spa, fitness centre, swimming pool, and multiple gourmet dining options. Guests can enjoy meals at Majhighar, Forest Flame, the revolving deck Machan, or unwind at the stylish Tanavi Sports Bar. The emphasis is on immersive experiences rooted in local culture and cuisine, combined with global service standards.

 

Ajay K. Bakaya, Chairman of Sarovar Hotels, emphasised the strategic significance of this launch, noting Nepal’s increasing appeal among Indian and international tourists. He stated that Royal Tulip Chitwan is designed to offer a luxurious yet culturally authentic retreat. Rameshwar Shah of KTM Hospitality echoed this sentiment, highlighting the resort’s role in promoting Chitwan as a luxury eco-tourism hotspot.

 

With this debut, Louvre Hotels Group is expanding its South Asian footprint by targeting high-potential, experience-driven markets. Royal Tulip Chitwan is expected to become a landmark for leisure travel in Nepal, attracting guests seeking a tranquil yet luxurious escape surrounded by nature and culture.



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Las Vegas Sees Fewer Visitors Amid Changing Travel Trends

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Saturday, August 2, 2025

Las Vegas, celebrated as the entertainment capital of the world, is grappling with a decline in tourism. Locals have expressed concern, with many noting that the city’s iconic casinos are now quiet compared to the bustling atmosphere. The shift comes amidst a variety of factors, including changing political climates and evolving consumer behavior and broader travel trends that have caused a dramatic drop in tourism.

Tourism Decline: What’s Behind the Fall in Visitors

The sharp decline in tourism in Las Vegas has been felt deeply in the local economy, which relies heavily on tourists flocking to its casinos, resorts and entertainment venues. The Strip, once packed with eager tourists, is now seeing fewer visitors, especially in some of the larger, more well-known casinos. This downturn has led to concerns among business owners and workers who rely on the constant influx of tourists for their livelihoods. In particular, many Las Vegas locals have pointed out that the once-crowded casinos are now far emptier than before, with fewer high rollers and international tourists gambling at the tables.

America: How Tourism Is Affected

Las Vegas, being a major destination for international travelers, has felt the effects of these policies. Many international visitors, who would otherwise frequent Las Vegas for its world-class casinos, shows, and attractions, have chosen alternative destinations in Europe or Asia, where travel policies are more relaxed. Moreover, the rhetoric surrounding immigration and the portrayal of the U.S. as less welcoming to foreigners has led to a significant decrease in the number of tourists coming from overseas.

Changing Consumer Habits

In addition to this, changing consumer habits are also contributing to the decline in Las Vegas tourism. Furthermore, the rising popularity of staycations has impacted Las Vegas’ tourism industry. More Americans are choosing to take vacations within their own country and often prefer to visit nearby destinations rather than making the long journey to Las Vegas. Cities like Los Angeles, San Francisco, and Phoenix have become increasingly popular alternatives, providing travelers with the same level of entertainment and relaxation without the associated travel costs or the crowded experience Las Vegas now offers.This shift in consumer behavior, combined with economic uncertainties and the high cost of travel, has caused many potential visitors to look elsewhere for their leisure time.

Adapting to the New Reality: Efforts to Revitalize Las Vegas Tourism

Las Vegas is working tirelessly to adapt to these changing dynamics and breathe new life into its tourism industry. Local businesses, tourism boards and city officials are all focusing on diversifying the offerings that have traditionally centered around casinos and nightlife.

Las Vegas is embracing new tourist attractions, such as immersive art exhibits, family-friendly entertainment, and wellness retreats. Additionally, the city is hosting an increasing number of non-gambling events, such as conferences, sports events, and concerts, to attract a new wave of visitors who may not be interested in casinos but are still drawn to Las Vegas’ entertainment options.

Moreover, Las Vegas is actively marketing itself as a destination for millennials and Gen Z, who are more interested in experiences like live concerts, celebrity chef dining, and unique cultural events rather than traditional gambling. By promoting a more diverse set of attractions and rebranding itself as a multifaceted vacation destination, Las Vegas is hoping to regain its appeal among younger travelers.

The Future of Las Vegas Tourism: What Lies Ahead?

While the challenges are significant, there is hope for the future of Las Vegas tourism. With its constant reinvention and ability to adapt to new trends, Las Vegas has the potential to recover from the current slump. However, it will require a concerted effort to regain the confidence of international travelers.

As it adjusts to the effects of Trump’s policies, shifting consumer behaviors and the global tourism landscape, the city will continue to evolve. Las Vegas has long been known for its resilience, and if the city’s history is any guide, it will likely find new ways to draw in tourists and bring back the vibrancy that has made it the world’s entertainment capital for decades.

Changing Landscape for Las Vegas Tourism

Las Vegas has long been synonymous with glamour, entertainment and excitement. However the recent decline in tourism has left locals and business owners worried about the future of the city’s economy. While the decline in visitation is concerning, there are signs of hope as the city adapts to a new era. Through innovation, reinvention and a focus on attracting diverse visitors, Las Vegas will likely remain a global tourism destination but it may look a little different than it once did.



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Uzbekistan’s Overseas Tourism Growth: Record-Breaking Year for Outbound Travel Trends

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Saturday, August 2, 2025

In recent years, Uzbekistan has witnessed a remarkable transformation in its tourism sector. More specifically, the growth of overseas tourism has been striking. Uzbekistan’s citizens are traveling abroad at rates never seen before, signaling a fundamental shift in the nation’s travel habits. This shift is reflective of the country’s economic progress, increased disposable income, and evolving preferences for international destinations. As Uzbekistan’s economy grows, so does the desire for its citizens to explore the world, marking a new era of outbound tourism.

Historically, Uzbekistan has been a country rich in culture, history, and natural beauty, but its citizens’ international travel has traditionally been limited. Several factors have contributed to this change, and understanding the elements driving this increase can provide insights into both the country’s growing tourism industry and the broader regional travel trends.

A Surge in Overseas Travel: Key Factors Behind the Growth

The significant rise in outbound tourism from Uzbekistan can be attributed to multiple factors that have created an environment conducive to international travel. First and foremost, the country has experienced a period of economic growth, which has translated into greater disposable income for citizens. This increased financial capability has enabled more individuals and families to afford overseas trips, whether for leisure, business, or cultural exchange.

Alongside economic growth, the liberalization of visa policies and international relations has played a crucial role. In recent years, Uzbekistan has made strides in simplifying visa requirements for many countries, making it easier for its citizens to travel abroad. Furthermore, partnerships with international airlines and the expansion of direct flight routes have improved access to foreign destinations. The availability of more flight options at competitive prices has made traveling internationally more affordable for many people.

The rise of digital technologies has also contributed to the surge in overseas tourism. The widespread availability of smartphones, internet access, and travel platforms has empowered Uzbek travelers to research destinations, book flights, and explore accommodation options more easily. Social media platforms and travel blogs have also fueled interest in international destinations, showcasing the experiences of fellow citizens abroad and inspiring more people to follow suit.

Moreover, the cultural shift toward valuing experiences over material possessions has influenced the decision of many Uzbek citizens to prioritize travel. Younger generations, in particular, are more inclined to seek adventure and exposure to new cultures, and overseas travel offers them the opportunity to broaden their horizons. As a result, destinations in Asia, Europe, and the Middle East have seen a noticeable increase in Uzbek visitors.

The Impact on Tourism Destinations Worldwide

Uzbekistan’s rise as a source market for outbound tourism has not only impacted the travel habits of its citizens but also left a significant mark on global tourism. Countries and regions that have long been popular among Uzbek travelers, such as neighboring Central Asian states and Russia, continue to see robust numbers. However, in recent years, the scope of destinations chosen by Uzbek travelers has expanded to include a variety of far-flung countries and continents.

The demand for international travel from Uzbekistan is helping to drive growth in regions like Southeast Asia, Europe, and the Middle East. Popular tourist destinations in Turkey, the United Arab Emirates, Thailand, and Malaysia have increasingly catered to Uzbek travelers, offering tailored experiences that align with the preferences of this new market. The appeal of exotic locations, world-class shopping, and cultural experiences has driven many travelers from Uzbekistan to explore further afield.

In addition to traditional vacation spots, there has been a growing interest in more niche forms of tourism. For example, wellness tourism, educational travel, and business tourism have all gained popularity among Uzbek travelers. As the middle class grows in Uzbekistan, so does the demand for more sophisticated and diverse travel experiences.

The Economic Impact of Outbound Tourism

As more Uzbek citizens engage in overseas tourism, the economic impact on the tourism industry both within Uzbekistan and globally is substantial. Outbound tourism represents a significant opportunity for Uzbekistan to increase its international profile. Many tourism experts suggest that this trend could eventually lead to the development of a robust outbound tourism market, which could generate foreign currency inflows for Uzbekistan.

The growth of outbound tourism is not only beneficial for Uzbek travelers but also for the economies of the destinations they visit. As more tourists arrive from Uzbekistan, the demand for goods and services increases in host countries, driving economic growth in those regions. The tourism industry benefits from the influx of spending, especially in the hospitality, transportation, retail, and entertainment sectors.

On the flip side, Uzbekistan’s tourism industry also benefits from the growing interest in travel. As Uzbek citizens become more exposed to international tourism standards and expectations, they are likely to seek similar experiences when traveling domestically. This could lead to the development of higher-quality tourism infrastructure and services within Uzbekistan, in turn benefiting the country’s growing tourism market.

Future Trends and Prospects

Looking ahead, Uzbekistan’s overseas tourism sector is poised for further expansion. The country’s growing middle class, coupled with ongoing improvements in international relations and travel accessibility, suggests that international travel will continue to be a significant part of Uzbek citizens’ lifestyles.

The government is likely to continue investing in policies and initiatives that support tourism growth, both domestically and abroad. With ongoing efforts to diversify its economy and enhance cultural exchange, Uzbekistan has the potential to become an even more significant player in the global tourism market. The rise of Uzbekistan’s outbound tourism is not just a passing trend, but rather a fundamental shift that reflects broader economic and cultural changes within the country.

Additionally, as international tourism becomes an increasingly important aspect of the country’s economy, Uzbekistan will likely strengthen its tourism infrastructure to support growing demand. This includes the improvement of air travel services, hospitality facilities, and the development of new tourist destinations that attract travelers both from within Central Asia and beyond.

For travelers, the rise in outbound tourism from Uzbekistan presents exciting possibilities for cultural exchange and exploration. The increasing number of Uzbek tourists abroad creates opportunities for deeper connections between countries and regions, promoting mutual understanding and collaboration.

Conclusion

Uzbekistan’s overseas tourism growth is a reflection of the country’s evolving economy and changing social trends. With increasing numbers of Uzbek citizens exploring destinations around the world, the travel industry is set to experience continued expansion. Factors such as economic growth, improved travel accessibility, and changing cultural attitudes have all contributed to this surge in outbound tourism.

As this trend continues, Uzbekistan will likely play an increasingly important role in the global tourism landscape, while its citizens benefit from new opportunities for travel and exploration. The future of Uzbekistan’s tourism sector looks bright, with an ever-expanding interest in international travel that promises to shape the country’s economic and cultural future.



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