The travel industry remains a fertile ground for innovators, with many excited about the potential for future innovation and the business models artificial intelligence (AI) may bring. According to the report, the industry has seen rapid developments in AI and wider challenges around economic and political uncertainty.
Hot 25 Travel Startups for 2026
The Hot 25 Travel Startups for 2026 include companies from Asia Pacific, the Middle East, the U.K., the U.S., and Latin America. The combined PhocusWire-Phocuswright team narrowed down a list of more than 150 travel startups to select the top 25. Of the class of 2026, 10 are very early stage, having been founded in 2024 or 2025.
Many of the startups were born during or just after the COVID pandemic, demonstrating their focus and determination to succeed. At least 60% of the Hot Startups are leaning heavily on AI, with other emerging technologies such as blockchain and decentralized ID also represented.
The diversity of the founding teams, sectors, and geographies is a key factor in the selection process, ensuring that the list represents a wide range of innovative ideas and approaches. This diversity is reflected in the range of companies included in the list, from those focused on travel booking and planning to those exploring new technologies and business models.
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AI-Native Startups
According to Mike Coletta, senior manager of research and innovation at Phocuswright, the most successful startups will be those that are AI-native and adaptable. He said, “As we pointed out in The AI-Native Edge: Travel Startups 2025, travel startup funding will hit multi-year lows this year even as AI-native founders report step-function productivity gains.”
Coletta expects fewer, sharper checks chasing teams that can turn speed into distribution and outrun the funding drought. The winners will be the AI-native companies leapfrogging legacy stacks and building agent-ready services that can plug directly into the next generation of distribution.
Previous Years’ Startups
PhocusWire has recognized 200 companies through the Hot 25 series, including the class of 2026. Collectively, those startups have raised more than $3.3 billion dollars, according to Phocuswright’s Travel Startups Interactive Database. Some startups have been acquired or merged with other companies, while a small number are no longer operating.
Across the wider travel startup environment, Phocuswright has tracked nearly 8,000 companies that have received more than $230 billion in funding from more than 11,000 rounds since 2005. Travel tech funding totaled $5.8 billion in 2024, a slight increase from $5.3 billion in 2023, but is on track to decline again this year.
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By the end of May this year, the figure stood at $1.1 billion, indicating a potential slowdown in funding. However, the ongoing innovation and adaptation in the industry are likely to drive future growth and investment.
This Year’s Startups
The class of 2026 includes 25 startups, each with their own description, strategic goals for 2026, and lessons learned since founding. The list includes companies such as Arcube, Becoming RentABLE, BizTrip AI, and Bonafide, among others. PhocusWire has provided links to past coverage of these startups, as applicable.
For those interested in learning more about the previous years’ startups, PhocusWire has published “Where are they now?” articles, including Catching up with the Hot 25 Travel Startups for 2022 and Catching up with the Hot 25 Travel Startups for 2021. These articles provide updates on the progress and achievements of the startups recognized in previous years.