Lodgify plans to expand its short-term rental management software globally, BookOutdoors wants to bring campsites into the 21st century, and Way exited stealth mode with a full list of clients.
Travel Startup Funding This Week
Each week we round up travel startups that have recently received or announced funding. Please email Travel Tech Reporter Justin Dawes at [email protected] if you have funding news.
Five travel tech startups announced $62.1 million in funding this week.
The vacation rental software startup Lodgify has raised $30 million in Series B funding. It was led by Octopus Ventures with participation from Bonsai Partners, Aldea Ventures and ICF, as well as existing investors Intermedia Vermögensverwaltung and Nauta Capital.
The Barcelona startup’s software is meant to help short-term rental hosts manage and grow their small- to medium-sized portfolios. The startup’s software platform enables hosts without tech skills to build their own website and accept direct bookings and payments.
Lodgify plans to use the funding to accelerate global business and strengthen the product.
Lodgify now has nearly 200 employees, including a research and development team of more that 70.
The software startup Way, based in Texas and Paris, raised a $20 million Series A round. It was led by Tiger Global, with participation from a number of hotel executives and groups, including MSD Capital.
The company’s integrated software is meant to help hotels more easily offer ticketed events and experiences through their own websites. The startup said it has reached millions in annual recurring revenue since it was founded in May 2020, averaging 20 percent growth each month.
Clients include groups like Bunkhouse Group, Highgate Hotels, Fairmont, Auberge Resorts, as well as independent hotels like The Little Nell in Aspen. Also included is the Kimpton Cottonwood of the InterContinental Hotels Group.
“Hotels are increasingly expected to go beyond providing a place to stay or dine, and to become true providers of experiences. We’ve always had some programming for guests and locals, but as we aspired to do more, the breadth of systems and staff resources required made delivering these experiences a challenge,” said Steve Shern, general manager of the Kimpton Cottonwood. “Way was the one-of-a-kind solution we had been seeking for years.”
Journey Hospitality, which works in e-commerce for hotels, has secured $5.6 million (£5 million) of growth capital investment from Averroes Capital.
In the last year, the U.K. company released its Onejourney platform, which it called “Shopify for hotels.” Using the software, hotels can sell all the products and services they offer in one place online, meant to help guests more seamlessly purchase what they want.
The platform has been integrated into more than 100 hotel and resort websites, and there are a few dozen more set to come online. Journey said that clients have seen a 25 percent reduction of inbound consumer calls and twice as many sales, with 30 percent of online orders featuring multiple products.
The company also owns Gifted, a hotel gift voucher program.
This is the first growth funding Journey has raised since it was founded in 2010. The company plans to hire as it works to advance product development and expand business. The company said its annual software revenue has grown by 151 percent in the past year, with more growth projected over the next.
BookOutdoors has announced the launch of its campground site booking platform along with a $4 million seed funding round.
The funding was led by GreatPoint Ventures, with participation from Revolution’s Rise of the Rest Seed fund and R-Squared Ventures. It also included Aman Bhutani, former Expedia exec and now CEO of GoDaddy, along with former Booking.com exec Brendan Bank.
BookOutdoors is now being used by campgrounds, RV parks, cabins and glamping resorts in 12 states, and the startup plans to expand into other properties throughout the rest of the country.
Unlike in the hotel industry, the company said there is not much booking help for campgrounds despite their high demand by consumers. The startup is already working with property management systems NewBook and ResNexus on offering platform integrations.
“We launched BookOutdoors to reimagine and fundamentally transform how people plan and book outdoor travel,” the company said in a statement.
Globaleur has closed a pre-series A funding round of $2.5 million. Investors included SeaX Ventures, Knet Investment Partners, Big Basin Capital and Primer Sazze.
The South Korean company said it uses artificial intelligence to help airlines, hotel chains, travel management companies, online travel agencies and government-operated tourism boards personalize offers and experiences for guests throughout the entire travel experience, from beginning to end.
Globaleur said it has expanded into Singapore as a gateway into Southeast Asia.
|Lodgify||Series B||Octopus Ventures||$30 million|
|Way||Series A||Tiger Global||$20 million|
|Journey Hospitality||Growth capital||Averroes Capital||$5.6 million|
|BookOutdoors||Seed||GreatPoint Ventures||$4 million|
|Globaleur||Pre-series A||Unspecified||$2.5 million|
Skift Cheat Sheet
Seed capital is money used to start a business, often led by angel investors and friends or family.
Series A financing is typically drawn from venture capitalists. The round aims to help a startup’s founders make sure that their product is something that customers truly want to buy.
Series B financing is mainly about venture capitalist firms helping a company grow faster. These fundraising rounds can assist in recruiting skilled workers and developing cost-effective marketing.
Series C financing is ordinarily about helping a company expand, such as through acquisitions. In addition to VCs, hedge funds, investment banks, and private equity firms often participate.
Series D, E, and, beyond These mainly mature businesses and the funding round may help a company prepare to go public or be acquired. A variety of types of private investors might participate.
Photo credit: The company that owns Fairmont Hotel in San Francisco (pictured) is a client of startup Way. Wikimedia Commons / Wikimedia Commons