Tech systems need upgrades to handle unprecedented growth in travel, and private equity firms are deploying billions to take part. In 2025, expect more consolidation as well-funded late-stage startups buy up smaller players, reshaping the industry’s behind-the-scenes infrastructure.
Having become the third-largest domestic aviation market, India is now setting sights on positioning itself as a hub connecting the East to the West. Perhaps this could also boost the lagging international inbound segment.
TravelPerk's $200 million deal likely is a preview of what to expect in 2025. There were multiple large raises in 2024 — including hundreds of millions of dollars for business travel platforms — and the signs point to that continuing.
There were several fundraises in 2024 that topped anything the travel industry has seen in years. Travel startups raised billions more than in 2023 despite the number of deals being roughly the same.
Archer Aviation has raised $660 million this year alone, while competitor Lilium is going through bankruptcy proceedings after burning through $1 billion. It takes a lot of money to get new planes into the sky.