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.

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.

If the first quarter of 2025 proved lackluster for travel startup funding with only&nbsp;<a href="https://www.phocuswire.com/travel-startup-funding-mergers-acquisitions-q1-2025" data-feathr-click-track="true" data-feathr-link-aids="5cadecf187056a000ef37147">about $1 billion going into newcomers</a> in the space, the second quarter slipped further.
It seems all the&nbsp;<a href="https://www.phocuswire.com/tariffs-impact-travel-industry" data-feathr-click-track="true" data-feathr-link-aids="5cadecf187056a000ef37147">headlines around tariffs</a>&nbsp;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&rsquo;s&nbsp;<a href="https://www.phocuswright.com/Travel-Research/Technology-Innovation/Travel-Startups-Interactive-Database" data-feathr-click-track="true" data-feathr-link-aids="5cadecf187056a000ef37147">Travel Startups Interactive Database.</a>
If funding levels continue along this trend, the total come end of 2025 could be around $4 billion, significantly less than&nbsp;<a href="https://www.phocuswire.com/travel-startup-funding-2024" data-feathr-click-track="true" data-feathr-link-aids="5cadecf187056a000ef37147">2024&rsquo;s $5.5 billion</a>&nbsp;and a far cry from 2021&rsquo;s record $16 billion.
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&nbsp;<a href="https://velocityventures.vc/" data-feathr-click-track="true" data-feathr-link-aids="5cadecf187056a000ef37147">Velocity Ventures</a>. He touched the current attitude to risk, boardroom paralysis and IPOs being shelved.

A regular dissection of the news, issues and trends in travel and technology, featuring interviews with industry executives and entrepreneurs and hosted by PhocusWire editors.

A regular dissection of the news, issues and trends in travel and technology, featuring interviews with industry executives and entrepreneurs and hosted by PhocusWire editors.

In Phocus is a regular dissection of the news, issues and trends in travel and technology, featuring interviews with industry executives and entrepreneurs and hosted by PhocusWire editors.

In Phocus

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.

Travel investor sentiment with Velocity Ventures' Nick Cocks

During its its third quarter earnings call in early November, Airbnb shared some early results of its experiences and services launches.

At the time, the company said almost half of those booked were not related to an accommodation booking. Meanwhile, 10% of those who booked a service—think massages and private chefs—were totally new to the platform. 

Airbnb is “super encouraged” by those results, chief business officer Dave Stephenson said during an interview in the PhocusWire studio at The Phocuswright Conference 2025.

They not only reveal demand for the new business lines but also that the platform can be seen for more than just short-term rentals, he said. 

The company's recent marketing initiatives have also been aligned with the launches and communicating the message that users can get more than just an Airbnb rental from the platform.

“It’s not just about the home. It’s really about the trip. It’s about all the experiences that you can have in the community that that you're traveling to. We want these authentic experiences, these authentic stays to get to a sense of the place. So that's where you're seeing our advertising kind of expanding the definition of what it means to be in an Airbnb,” Stephenson said.

He went on to discuss how the company rebuilt its technology stack to enable the sale of services and experiences and allow for the onboarding of different service providers with their own requirements.

During its&nbsp;its&nbsp;<a href="https://www.phocuswire.com/airbnb-q3-2025-earnings" data-feathr-click-track="true" data-feathr-link-aids="5cadecf187056a000ef37147">third quarter earnings</a>&nbsp;call in early November,&nbsp;<a href="https://airbnb.com/" data-feathr-click-track="true" data-feathr-link-aids="5cadecf187056a000ef37147">Airbnb</a>&nbsp;shared some early results of its&nbsp;<a href="https://www.phocuswire.com/airbnb-summer-release-2025-experiences-services-short-term-rentals" data-feathr-click-track="true" data-feathr-link-aids="5cadecf187056a000ef37147">experiences and services launches</a>.
At the time, the company said almost half of those booked were not related to an accommodation booking. Meanwhile, 10% of those who booked a service&mdash;think massages and private chefs&mdash;were totally new to the platform.&nbsp;
Airbnb is &ldquo;super encouraged&rdquo; by those results, chief business officer Dave Stephenson said during an interview in the PhocusWire studio at&nbsp;<a href="https://phocuswrightconference.com/" data-feathr-click-track="true" data-feathr-link-aids="5cadecf187056a000ef37147">The Phocuswright Conference 2025</a>.
They not only reveal demand for the new business lines but also that the platform can be seen for more than just short-term rentals, he said.&nbsp;
The company's recent marketing initiatives have also been aligned with the launches and communicating the message that users can get more than just an Airbnb rental from the platform.
&ldquo;It&rsquo;s not just about the home. It&rsquo;s really about the trip. It&rsquo;s about all the experiences that you can have in the community that that you're traveling to. We want these authentic experiences, these authentic stays to get to a sense of the place. So that's where you're seeing our advertising kind of expanding the definition of what it means to be in an Airbnb,&rdquo; Stephenson said.
He went on to discuss how the company rebuilt its technology stack to enable the sale of services and experiences and allow for the onboarding of different service providers with their own requirements.

Dave Stephenson, chief business officer of Airbnb, discusses new business lines including hotels, loyalty and fees changes with PhocusWire's Linda Fox.

Airbnb as an everything platform

Connecting the dots of the traveler journey is priority in the ground transportation sector, but tangible examples of connected trip in action are still somewhat “rare.”

Travelers can book a full trip in Sweden, including a train, taxi and a bus, which is working well, but there aren’t many models beyond that, according to SilverRail chief commercial officer Cameron Jones.

During an interview in the PhocusWire studio, Jones said the connected journey is still evolving, as is customer buying behavior.

“There’s this view that a customer might want to book everything in one transaction and one journey and planning experience, but I'm not sure that's the case,” he said.

When it comes to artificial intelligence (AI), tech is already helping with aggregating content and pricing, and the next phase will include purchasing.

“It just makes things simple, and I know, for us, that’s all we ever want is to try and make that purchasing experience simple,” said Nicole Kerr, CEO of Mozio.

Connecting the&nbsp;dots of the&nbsp;traveler&nbsp;journey is priority in the ground transportation sector, but tangible examples of connected trip in action are still somewhat &ldquo;rare.&rdquo;
Travelers can book a full trip in Sweden, including a train,&nbsp;taxi&nbsp;and a bus, which is working well, but there&nbsp;aren&rsquo;t&nbsp;many models beyond that, according to&nbsp;<a href="https://silverrailtech.com/" data-feathr-click-track="true" data-feathr-link-aids="5cadecf187056a000ef37147">SilverRail</a> chief commercial officer Cameron Jones.
During an interview in the PhocusWire studio, Jones said the connected journey is still evolving, as is customer buying behavior.
&ldquo;There&rsquo;s&nbsp;this view that a customer might want to book everything in one transaction and one journey and planning experience, but&nbsp;I'm&nbsp;not sure&nbsp;that's&nbsp;the case,&rdquo; he said.
When it comes to artificial intelligence (AI),&nbsp;tech is already helping with aggregating content and pricing, and the next phase will include purchasing.
&ldquo;It just makes things simple, and I know, for us, that&rsquo;s all we ever want is to try and make that purchasing experience simple,&rdquo; said Nicole Kerr,&nbsp;CEO&nbsp;of&nbsp;<a href="https://www.mozio.com/" data-feathr-click-track="true" data-feathr-link-aids="5cadecf187056a000ef37147">Mozio</a>.

Connecting the dots of the traveler journey is priority in the ground transportation sector, but tangible examples of connected trip in action are still somewhat “rare.”

Addressing current challenges and looming change in ground transportation with SilverRail and Mozio

The “connected trip” has become a bit of a tired buzzword, but the ability to bundle different trip elements is not less coveted in the travel space.

During an interview in the PhocusWire studio at The Phocuswright Conference last month, Manuel Hilty, CEO and co-founder of Nezasa, and Andrew Boch, CEO of Mobi.AI, discussed the end-to-end traveler journey and the gaps that remain.

While some think of the connected trip as being “top-down,” Boch highlighted Mobi.AI’s context-aware approach to artificial intelligence (AI).

“We think that, when you’re changing your flight, that should be aware of what your hotel plans were, and it should be aware of what the purpose of your trip was. Like when you’re staying at a hotel, the hotel should know why you’re there,” Boch said.

“That sort of context should be preserved throughout the travel experience, and fundamentally, all the downstream suppliers need some method of both understanding that context, ingesting that context and then, hopefully, acting on that context.”

The pair also commented on generational differences in data sharing, AI’s impact, agentic opportunity and more.

The&nbsp;&ldquo;connected trip&rdquo;&nbsp;has become a bit of a&nbsp;tired&nbsp;buzzword, but the ability to bundle different trip elements is not less coveted in the travel space.
During an&nbsp;interview&nbsp;in&nbsp;the PhocusWire studio&nbsp;at&nbsp;<a href="https://www.phocuswrightconference.com/" data-feathr-click-track="true" data-feathr-link-aids="5cadecf187056a000ef37147">The&nbsp;Phocuswright&nbsp;Conference</a>&nbsp;last month,&nbsp;Manuel Hilty, CEO and co-founder of&nbsp;<a href="https://nezasa.com/" data-feathr-click-track="true" data-feathr-link-aids="5cadecf187056a000ef37147">Nezasa</a>, and Andrew Boch, CEO of&nbsp;<a href="https://mobi.ai/" data-feathr-click-track="true" data-feathr-link-aids="5cadecf187056a000ef37147">Mobi.AI</a>, discussed the end-to-end traveler journey and the gaps that remain.
While some think of the connected trip as being &ldquo;top-down,&rdquo;&nbsp;Boch&nbsp;highlighted&nbsp;Mobi.AI&rsquo;s&nbsp;context-aware approach to artificial intelligence (AI).
&ldquo;We think that, when&nbsp;you&rsquo;re&nbsp;changing your flight, that should be aware of what your hotel plans were, and it should be aware of what the purpose of your trip was. Like when&nbsp;you&rsquo;re&nbsp;staying at a hotel, the hotel should know why&nbsp;you&rsquo;re&nbsp;there,&rdquo;&nbsp;Boch&nbsp;said.
&ldquo;That sort of context should be preserved throughout the travel experience, and fundamentally, all the downstream suppliers need some method of both understanding that context, ingesting that context and then, hopefully, acting on that context.&rdquo;
The pair also commented on generational&nbsp;differences&nbsp;in data sharing,&nbsp;AI&rsquo;s impact, agentic&nbsp;opportunity&nbsp;and more.

The CEOs of Nezasa and Mobi.ai discuss the end-to-end traveler journey and the gaps that remain.

Travel investor sentiment with Velocity Ventures' Nick Cocks

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