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Travel Startup Funding Falters in Q1 2025

  • phocuswright.com
  • 1 May 2025
  • 1 minute read
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This article was written by Phocuswright. Click here to read the original article

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Early-stage momentum in travel tech has slowed notably. According to Phocuswright’s Travel Metric of the Month, startup funding in the travel sector dipped sharply in the first quarter of 2025, with under $1 billion raised — a 40% drop compared to Q1 2024 and the slowest start in recent years.

Senior Manager of Research and Innovation Mike Coletta puts this into context: “2025 is off to a slower start than any other year so far.”

As market conditions evolve, which verticals are still securing capital—and what types of deals are getting done?

Explore April’s metric for:

  • The Top 5 verticals by funding amount
  • Funding rounds by type, compared year-over-year

This month, May’s Travel Metric of the Month covers the short-term rental market (it’s not a slowdown—it’s a normalization).

Dive deeper with our full analysis and more in the Travel Metric of the Month — available with a Phocuswright Open Access subscription. Not a subscriber yet? Now’s the time to get ahead of the curve.

Please click here to access the full original article.

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