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The UK traveltech sector has reached record levels of investment, with Edinburgh growing as one of the nation’s key centres for innovation—particularly in the application of Artificial Intelligence. According to a new report from Dealroom, commissioned by the Traveltech Innovation Hub at the Edinburgh Futures Institute (University of Edinburgh), the UK is now the world’s third largest destination for traveltech investment, behind only the United States and Canada.
The report reveals that since 2020, UK traveltech companies have raised significant funding across nearly 300 deals, with 2024 marking a new investment peak, largely driven by Artificial Intelligence-powered advancements. Notable deals include large funding rounds for London-based Lighthouse, which uses Artificial Intelligence to refine hotel pricing and distribution, and Unravel, which secured Series A funding for a video platform transforming travel inspiration into bookable experiences using Artificial Intelligence. Scotland, and Edinburgh in particular, have emerged as vibrant traveltech hubs, with over 100 startups in the sector. Local firms such as Obvlo, which develops Artificial Intelligence-driven content solutions for hotel and travel brands, have secured substantial investments, while global players like TravelPerk are expanding with new offices in Edinburgh.
Despite its momentum, the sector faces challenges—only 6% of European traveltech venture capital went to startups with female founders from 2022 to 2025. Leaders like Joshua Ryan-Saha of the Traveltech Innovation Hub emphasize Edinburgh’s role in fostering data-driven innovation, linking academic expertise, research, and student talent with entrepreneurial and tourism sectors. Support for female-led ventures is highlighted as an area needing more focus in the coming years.
Beyond Artificial Intelligence, the UK traveltech ecosystem shows robust growth in sub-sectors such as SaaS solutions for hospitality and fintech innovation for payments and expense management. The country’s travel and tourism sector overall has rebounded impressively, with its GDP contribution reaching 10% in 2023 and exceeding pre-pandemic figures. Resources such as the Traveltech Innovation Hub at the Edinburgh Futures Institute are helping catalyse collaboration between startups, academia, and industry to drive the next generation of travel technology, both in Scotland and across the UK. The full Dealroom report offers deeper insights into these trends and is publicly accessible.
