😇Travel Angel Investing: A Goldmine if you Choose Well

Like the rest of the globe, US travel is changing dramatically, drawn back to a domestic focus which I explored in the US domestic travel market report.

As an angel investor, you have plenty of industries to invest in, however, as mentioned in the travel startup post, travel and technology combined are making entrepreneurs and financers give travel businesses a hard look. A lot of what held back travel businesses is being erased with the new technology.

AI-driven personalization, automation, and niche-focused SaaS tools are reducing operational costs, improving customer retention, and unlocking new revenue streams—making travel businesses more scalable and profitable than ever.

A lot of these travel tech-powered start-ups can find profitable niches and scale up flexibly. It may look as though AI is wiping away costs, easing friction, and exposing more convenience, it also enables greater reach to human expert travel advice and services. After the automation of AI travel planners, chatbot service and management tools, you can deliver the defining differentiating factor — human services. And in travel, a connection to humans is still required.

What is the Essence of their Hesistation?

There are tens of thousands of travel business people considering a travel business project, but a lack of confidence, lack of research and clarity, and lack of funding keeps them stuck in their status quo. It takes a lot of work to study the market and build out a potential winning business idea. In the end, it’s about confidence and persistence in following up on that dream.

In this post, we take another look at the marketplace investment opportunities and where they might be best for you. Some such as tour marketplaces and niche travel services are highly accessible, yet competitive. Scaling up, gaining visibility, building brand impact and loyalty and perfecting the UVP/offer are ongoing challenges.

Capture a broader macroeconomic understanding first before you focus in on niche opportunities. This post is a pep talk to help you perk up and see the possibilities, what causes success, and then assess the risks objectively.

Consumers Still Interested in Travel

The travel bug has been thwarted by President Trump, but not crushed. Americans and Canadians are still traveling. The 5 year travel forecast suggests growth, particularly for American-based travel businesses.

This year it’s the domestic market that will boom, however, the tariff issues will cool, and trade will start flowing again. Trump’s announced trade deal with the UK is an indicator of trade improvements.

As political tensions ease, more people will travel again. They’ll enjoy the growth in destinations, resorts, hotels, venues and attractions, along with the ease of building and crafting itineraries online. Travel planning is becoming much easier thus travel companies can capture more of the traveler’s intent.  Travelers can follow through with their dream vacation. Whatever they can dream, they might get. So the benefit of satisfaction is growing bookings and revenue.

It’s believed US consumers drive the whole market from Europe to Mexico to Southeast Asia.  And last month’s bump up in US consumer spending show they’re a resilient lot despite feeling threatened by Trump’s tariffs. If inflation/costs are an issue, it underscores the power of efficiency.

You can review the reasoning and research on the travel startup post for some reference on the travel opportunity. If you continue research, you’ll see a number of startups with quality concepts, and some are becoming very successful.

Engine.com Rebranding

Hotelengine for instance rebranded as Engine and attracted $24 million in new funding. You get the picture in one graphic where a company started in a niche (business hotel bookings), to try to expand into the broader business travel market. Will they succeed?

The stats show Engine has lots of room to grow, given their current website traffic is nothing to write home about. 12,000 visitors a month is very low however if some of the investment funds should go to content and SEO and PPC campaigns, they might get the traffic going. Otherwise, the company could see flat bookings and revenue growth (which seems to be happening, as they’re back to the same traffic they had last year).

Okay, so travel businesses need good ideas (brands), strong marketing and sufficient funding. Starving marketing and advertising is not a good idea.  As my mantra goes, “you don’t have to be the best, just be the only one they want!”  And you get there via excellent travel marketing.

Macroeconomic Impact of Trumponomics on Travel

The Trump administration’s policies are timely positives, emphasizing:

• Corporate tax cuts → More capital for business travel, M&A, and startup funding.
• Deregulation → Easier permitting for hotels, Airbnb-style rentals, and aviation startups.
• Trade policies → Reduced inbound traffic and potential tariffs on foreign tourism services (e.g., Chinese group travel), which would benefit domestic players.
• Stronger USD → Cheaper outbound travel for Americans, but pricier inbound tourism.

Net Effect:

• Bullish for domestic travel, B2B travel tech, and asset-light models.
• Mixed for inbound tourism (strong US dollar = fewer foreign visitors).

Which Travel Startups Would Thrive?

Domestic & Budget Travel Platforms

Why? If the economy grows but inflation lingers, cost-conscious travel will boom.

Examples:

• Bus/road trip marketplaces (e.g., Wanderu, RVshare).
• Last-minute deal apps (e.g., HotelTonight).
• Shared-economy lodging (Airbnb arbitrage, co-living spaces).

Business Travel & “Bleisure” Startups

Why? Corporate tax cuts = more business trips, conferences, and “workcation” demand.

Examples:

• B2B booking tools (e.g., TravelPerk, Navan).
• Short-term rental platforms for remote workers (e.g., Blueground, Landing).

Aviation & Transportation Innovation

Why? Deregulation could lower barriers for:

• Regional air travel startups (e.g., Avelo, Breeze Airways).
• EV/aviation tech (e.g., electric seaplanes, vertiports).

Luxury & Experiential Travel

Why? Wealthier Americans (benefiting from tax cuts) will splurge on high-end trips.

Examples:

• Private club travel memberships (e.g., Inspirato, Priority Pass).
• Niche concierge services (e.g., curated hunting/fishing trips).

Defense & Gov’t Adjacent Travel

Why? A Trump admin may increase military and infrastructure spending, boosting:

• Gov’t contractor lodging (startups serving military/base travel).
• Border/security-related travel tech (e.g., visa processing SaaS).

Startups That Could Struggle

• Inbound tourism marketplaces (strong dollar = fewer international visitors).
• Global luxury operators (unless they pivot to U.S. clientele).
• Sustainability-focused travel (if environmental regulations loosen).

Strategic Takeaways for Angel Investors

Under a Trump-leaning economy:

✅ Focus on domestic/U.S.-centric travel models.
✅ Back startups benefiting from deregulation (aviation, short-term rentals).
✅ Target business travel, budget, and “patriotic” tourism (e.g., national parks, road trips).
⚠️ Be cautious with inbound tourism plays unless they adapt.

30 Notable small-to-mid-sized Travel Startups

For reference, check out these 30 startups which have survived (and in many cases, thrived) in the tech-driven travel marketplace. These companies span various niches—booking platforms, AI travel planning, experiential travel, SaaS, sustainability, and more—and have demonstrated resilience despite economic shifts.

Booking & Accommodation Tech

1. Hopper – AI-powered travel booking app with price prediction & fintech features.
2. Selina – Hybrid hostel/hotel chain catering to digital nomads.
3. Sonder – Tech-powered short-term rental management (struggling, but worth it to study a potential failure in progress).
4. Blueground – Furnished apartment rentals for 30+ day stays.
5. Outdoorsy – Airbnb for RVs and campervans.

Experiences & Tours

1. Klook – Asia-focused tours/activities marketplace.
2. GetYourGuide – Global tours/attractions booking platform.
3. Peek – SaaS for tour operators + consumer booking site.
4. Eatwith – Marketplace for local dining experiences.
5. Withlocals – Connects travelers with local hosts for private tours.

Business & Bleisure Travel

1. TravelPerk – All-in-one corporate travel booking platform.
2. Navan (formerly TripActions) – Expense management + corporate travel.
3. Spotnana – Cloud-native corporate travel platform.
4. SafetyWing – Insurance & benefits for remote workers/nomads.
5. Landing – Flexible apartment rentals for remote workers.

Transportation & Mobility

1. Omio – Multi-modal transport search (trains, buses, flights).
2. Wanderu – Bus/train booking platform in North America.
3. Blacklane – Premium chauffeur service with flat-rate pricing.
4. Skyscanner (still mid-sized despite acquisition) – Meta-search engine.
5. Rome2Rio – Trip planning with route comparisons.

Niche & Luxury Travel

1. Inspirato – Luxury travel subscription service.
2. The Plum Guide – Vetted high-end vacation rentals.
3. Mr & Mrs Smith – Boutique hotel curation for affluent travelers.
4. Secret Escapes – Members-only luxury travel deals.
5. Porter & Sail – Curated lake/river vacation homes.

Sustainability & New Models

1. Kind Traveler – “Give + Get” platform promoting sustainable stays.
2. Byway – Tech-backed slow-travel (flight-free itineraries).
3. Fairbnb – Ethical alternative to Airbnb, focusing on community impact.
4. Goodwings – Climate-conscious corporate travel booking.
5. Hiiker – App for self-guided hiking/trekking routes.

Key Observations on What has Driven their Successes

✔ Tech Differentiation – AI (Hopper), SaaS (Peek), and automation (TravelPerk) helped them scale efficiently.
✔ Niche Focus – Companies like Outdoorsy (RVs) and Byway (slow travel) avoided direct competition with giants.
✔ Recurring Revenue Models – Subscriptions (Inspirato), B2B SaaS (Peek), and memberships (Secret Escapes) improved unit economics.
✔ Adaptability – Many pivoted post-pandemic (e.g., Selina added co-working, SafetyWing expanded beyond insurance).

Here’s the next layer of insights—deep dives into financial health, failed startups (and why), and emerging players to watch—to help investors and entrepreneurs navigate the travel tech landscape strategically.

Financial Health & Funding Trends of Notable Startups

1. Well-Funded & Scaling ($100M+ Raised)
2. Hopper – Raised ~740M, valued at 740M, valued at 5B (2023). Strong in AI-driven fintech (cancel-for-anywhere, price freeze).
3. TravelPerk – $511M raised. Recurring B2B revenue model (corporate travel SaaS).
4. Klook – $900M+, focusing on Asia’s experiential travel rebound.
5. Navan (TripActions) – 1.5Braised,thoughpost−valuationcuts( 1.5Braised,thoughpost−valuationcuts( 9B → $5B).

Bootstrapped or Profitable Niche Players

• Peek – Profitable since 2021 by focusing on SMB tour operators.
• Outdoorsy – Claimed profitability in 2022 (RV rental boom).
• Mr & Mrs Smith – Acquired by Hyatt for $53M (2023), validating niche luxury curation.

Struggling but Surviving

• Sonder – Post-IPO turbulence (NYSE: SOND), but restructuring toward profitability.
• Selina – Went public via SPAC (2023), now trading at ~$0.20 (delisting risk).

Key Takeaway:

• B2B/SaaS models (TravelPerk, Peek) show stronger unit economics than B2C marketplaces.
• Capital-intensive models (Sonder, Selina) face liquidity crunches if growth stalls.

Failed Travel Startups & Why They Collapsed

1. Lola (2015–2020) – Corporate travel app. Failure Reason: Pivoted too often, couldn’t compete with Navan/Expensify.
2. Stayful (2013–2015) – Last-minute luxury hotel deals. Failure Reason: Acquired by Palms (but shut down)—undercut by Priceline’s scale.
3. TravelBank (2016–2023) – Expense management. Failure Reason: Burned cash on sales/marketing, outgunned by Ramp/Breach.
4. Roomer (2012–2017) – Marketplace for non-refundable hotel rooms. Failure Reason: Low liquidity; hotels blocked resales.

Patterns of Failure:

• No moat: Competed on price vs. giants (Booking, Expedia).
• Poor unit economics: High CAC, low repeat usage.
• Regulatory hurdles: Roomer’s model violated hotel T&Cs.

Emerging Startups to Watch (2024–2025)

AI & Hyper-Personalization

• Layla – AI trip planner (ex-Kayak team) using generative AI.
• WanderGenie – Real-time personalized itineraries via chatbot.

Sustainable Travel

• Sustonica– Certifies eco-friendly hotels (like “LEED for travel”).
• Tred– Carbon-neutral flight booking platform.

Remote Work & Coliving

• Boundless Life– Family-focused “slow travel” subscriptions.
• Koala– Coliving spaces with flexible leases.

Aviation Innovation

• Skyports– EVTOL (flying taxi) infrastructure.
• Harbour Air– Electric seaplanes (backed by MagniX).

Wildcards

• Journey– Web3 travel loyalty platform (tokenized rewards).
• Nuvola– Airbnb but for private jets (fractional ownership).

1. Strategic Takeaways for Investors

Good potential:

• Vertical SaaS (e.g., Peek for tour marketplaces, TravelPerk for travel agencies, DMOs and other SMBs).
• AI that reduces friction (dynamic pricing, chatbots, AI travel planners).
• Models with recurring revenue (subscriptions, B2B).

Avoid:

• Pure B2C marketplaces with high CAC (unless niche defensibility).
• Cap-ex heavy plays (e.g., physical co-living without tech leverage).

Wildcard Opportunities:

• AI-powered “travel agents” and travel planners for Gen Z (e.g., Atlas, Mindtrip, Layla).

See more on AI travel planners which are storming the consumer and business travel market scenes. Is launching your own AI travel agency the best, most accessible option?

For deeper insights into the travel market, visit Phocuswright’s  Travel Forward: Data, Insights and Trends Report for 2025,

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