It’s been just over two years since PhocusWire named startups founded as the industry was recovering from the pandemic among its 2023 Hot 25 Travel Startups.
As we prepare to announce our 2025 Hot 25 Travel Startups, we’re checking out some of the companies that have made the list over the past few years.
We spoke with several select members of the Class of 2023, including Fetcherr, Grapevine, and Holibob. Answers have been edited for brevity.
fetcher
Fetcherr’s Generative Pricing Engine (GPE) leverages AI to generate optimal marketing efforts, giving businesses a strategic pricing advantage.
Robbie Nissan, co-founder and chief strategy officer, responded:
The biggest challenge I’m currently dealing with is… managing the high demand and massive scale-up of our product.
My take on the current funding environment for travel startups… We successfully raised $90 million in Round B last year, but we are an AI company and not a travel startup, so we are empathetic to that environment. you can’t.
M&A activity is increasing in the travel industry. My approach to evaluating such opportunities on the buyer or seller side is as follows. Our technology has not begun to realize its potential in the aviation industry or other markets, and we are not evaluating sales opportunities. When it comes to purchasing, all of our technology is proprietary, so we strategically do not purchase technology companies or products.
The technology and innovation that excites me the most is AGI and decision intelligence. Because they align with Fetcherr’s vision.
grapevine
Grapevine is a B2B AI technology that enables travel companies to identify lost retail opportunities from data and optimize booking revenue through intelligent post-booking remarketing and personalized traveler communications.
Founder Jack Dow’s answer:
The biggest challenge I’m dealing with today is… finding enough time in the day. We’ve signed on 5 new clients in the past 2 weeks. This is very exciting. We just started a funding round, so everything is going well.
My take on the current funding environment for travel startups…I think there is a huge funding gap (and opportunity!) at the seed stage of the travel industry. At the moment, startup funding is difficult in any industry, especially in today’s post-zero interest rate environment, but the travel industry is well below other industries in terms of investment to market size ratio. Ironically, pre-seed is probably the easiest time to raise money on a trip because many angel investors have first-hand experience with the problem, can see the potential, and like the founders and their passion. . With a Series A, a company typically has annual recurring revenue of $1 million to $2 million, has metrics to demonstrate product market fit (PMF), and can attract capital.
However, at the seed stage, when a startup has not yet reached PMF and needs to stretch its legs to build a team to deliver results, a pool of VC investors (typically raising $2-5 million) is needed. (if required) is limited. This is truly a blind spot for the industry, as great innovation is being stifled. I believe there is an opportunity for the industry itself to step in and create a pool of funds to support promising startups at seed stage or even pilot customers in that particular industry that are “sponsored” by a panel of industry experts. I believe it is possible to create. The net positives from this will be significant for the industry.
M&A activity is increasing in the travel industry. Here’s my approach to evaluating such opportunities on the buy or sell side… For any startup in the travel industry, there are weeks when you feel like you’re ready to conquer the world and weeks when you feel like you’re never going to sell. And I think there are some weeks where you feel like you’re being bought out. It’s a welcome relief! When I recently asked Nvidia founder Jensen Huang, who has a net worth of $125 billion, what advice he would give his 35-year-old self when starting a business, his answer was, “Don’t do it!” At the end of the day, what drives founders is building solutions that solve people’s problems. So, assuming your business is doing well, the question is whether being acquired will increase your chances of success, either through complementary skill sets or a larger audience.
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The technology and innovation that excites me the most is…because…the prospect of being able to provide a true end-to-end experience for travelers, both as startups and as travelers. The idea that travelers can get personalized communications at the right time, on the right channel, and proactively get the information they need, when they need it, is extremely valuable. This, combined with the reassurance that companies are taking care of their employees (including reminders of what they need to know!), means we have an exciting future ahead of us in the coming years. It will be.
holibob
Holibob brings together travel brands, travel agents, and local providers to provide personalized recommendations of things to do in a destination.
Response from Co-Founder and CEO Craig Everett:
The biggest challenge I’m currently dealing with is… When scaling up, the biggest challenge is always sales. Continuously gathering insights from customers and the broader market to refine go-to-market strategies requires constant attention and effort.
We are excited by the tremendous interest in this industry experience and the effectiveness of our inbound and outbound lead generation efforts. However, managing the resources to service this and maintain it at a continuously high level is a major challenge. This is especially true for the global market of travel.
My take on the current funding environment for travel startups… It’s a great time for seed and Series A founders as we enter a new investment cycle. However, for companies in the later stages of Series A and beyond, the hurdles to securing new funding are very high. Investors are focused on unit economics and sustainable growth, not just sales expansion. It can be a difficult change, but Holibob, like many others, is getting through it.
M&A activity is increasing in the travel industry. My approach to evaluating such opportunities on the buyer or seller side is as follows. Given Holibob’s position in the market and the fact that our experience as a vertical company remains largely untapped, we regularly participate in M&A discussions with leading companies. industry numbers. We are always excited and interested in conversations like this, as Holibob is uniquely positioned to help travel brands enter this space quickly and effectively.
When evaluating partnerships, we focus on alignment with our vision of connecting travelers with great activities. Potential partners should accelerate this journey with us. This is a key consideration in our M&A and partnership decisions.
The technology and innovation that excites me the most is… because… The experience industry remains ripe for disruption, and personalized recommendations to travelers is a hugely underserved area, and this is where experience transformation continues. This is one of the reasons why we lag behind other industries. LLM and other AI innovations are rapidly evolving, making it much easier to create content, tag it, and display relevant content. Although it is a challenging field, the possibilities are very exciting.
PhocusWire’s 25 Travel Startups to Watch in 2025
We selected the Hot 25 Travel Startups of 2025 after reviewing over 160 startups from around the world. We will announce the list on PhocusWire on November 11th.
