Hospitality Tech Funding Is on a Downward Trend So Far in 2016
Photo Credit: Employees at the Four Seasons Hotel Toronto help guests check-in. Pictured at right is the Four Seasons mobile app on an iPad. Skift / Dan Peltier
Skift Take
It's theoretically a great time to be investing in and creating hospitality tech startups with more hotels wanting to drive direct bookings and online travel agencies interested in getting their piece of the pie. But several factors, such as uncertainty with stock markets around the world, are making investors more cautious about if, and how much, they invest in these companies.
Hotel and alternative accommodations booking and tech startups raised about $550 million during the first two quarters of 2016, mostly for consumer-facing platforms, and while this amount might seem like a huge chunk of change some investors say this represents a slow down in funding.
Each week Skift tracks travel startup funding rounds of at least $1 million or more and only included those rounds in this story. Thirty-three companies are part of our analysis, which we draw from Crunchbase funding announcements and direct outreach from brands. See charts below for a breakdown of funding by company.
Of those companies, 19 have consumer-facing products and the remaining 14 offer B2B services and software for hotels, alternative accommodations and vacation rentals. Thirteen of the companies raised seed rounds, 12 raised Series A rounds, three raised Series B rounds and the rest were Series C and D. About $100 million of this funding went to startups specifically focused on the vacat
