It’s peak season for travel. And it turns out travel startup dealmaking is looking pretty robust too.
So far this year, seed through growth-stage financing for travel-related companies is on track to continue its recovery from 2023 lows. Recent deal flow includes large rounds for both consumer-facing companies and startups developing tools for the hospitality industry.
This morning, the space got a further boost with the announcement that Etraveli 1, provider of a global platform for booking flights, secured a large minority investment from KKR at a reported valuation of $3.1 billion. The Stockholm-based company is majority-owned by private equity firm CVC Capital Partners.
While Etraveli didn’t specify how bringing on a new investor will impact its growth plans, it should be noted that the company was once an active acquirer. It’s made at least eight known purchases, with the most recent in 2019.
Today, the company operates multiple brands and businesses, including several travel agencies. Etraveli also partners with Booking.com, and says its flight-booking technology is used by more than 40 million travelers annually.
So, who else got funded?
The company is one of several that scored sizable investments this year.
At venture stage, per Crunchbase data the largest travel-related round of the year so far was for Airalo, an Ohio-based provider of digital SIM cards for travelers to avoid high roaming charges. The 6-year-old company raised $220 million this month in a Series C round led by CVC.
Barcelona-based TravelPerk, a tool for booking work trips, was also a hefty fundraiser. The company secured $200 million in a January Series E led by Atomico and EQT. Another big financing, meanwhile, went to Singapore’s Klook, a platform for finding tours and experiences, which secured a $100 million Series F in May.
Or exited?
We’ve also seen some large acquisitions of funded companies tied to travel and tourism.
In the largest deal, DoorDash acquired SevenRooms, a provider of marketing and operations tools for the hospitality industry, for $1.2 billion.
In another sizable transaction, MadeComfy, an Australian short-term rental company, sold to Belvilla, the short-term rental unit of India-based hospitality unicorn OYO in a cash-and-stock deal for an undisclosed price.
As for IPOs, we haven’t seen much action of late for venture-backed startups. However, with the IPO window opening up some in recent weeks, there’s optimism that members of the existing stable of travel hospitality unicorns may be gearing up for public offerings in coming months.
‘Coolcations’ and travel industry trends
As for the broader space, industry forecasts include both bullish and bearish indicators.
On the upbeat side, travel industry researcher Skift’s recent Travel Health Index points to a balanced period of growth for the sector. Vacation rentals, in particular, are seen as performing well, while the hotel industry faces some struggles.
With summer travel in full swing, crowded airports and beaches where it’s hard to find space for an umbrella also indicate a healthy spending environment. Even that biggest complaint among travelers — it’s too darn hot — is getting ameliorated by some shifting priorities.
In particular, one of the rising travel industry buzzwords in the age of climate change is the “coolcation” — as travelers increasingly seek cooler locales to spend leisure time. In the brutal peak weeks of summer heat, it’s a trend that, at least for now, sounds quite appealing.
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Illustration: Dom Guzman
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