Global travel is making a strong comeback, with the World Travel and Tourism Council projecting industry revenues to surpass $11 trillion this year. Travelers are shifting from the "revenge travel" surge seen post-COVID-19, now channeling more of their budgets into diverse travel experiences. The integration of AI is also sparking renewed investor interest in startups aiming to innovate within the travel sector.
Berlin-based Tourlane, a platform that simplifies trip planning by combining flights, accommodations, activities, and tickets, has secured €25 million ($26 million) in fresh funding. This Series D round, led by Sequoia Capital, is intended to support the company’s journey toward profitability, expand its technology offerings, enhance AI integration, and explore new markets outside France and Germany, according to CEO and co-founder Julian Weselek.
AI plays a pivotal role in Tourlane's strategy. On the front end, the company is developing generative AI tools to provide users with more intuitive travel recommendations. However, Weselek emphasizes that AI will not completely replace human involvement. He believes some travelers, especially those planning significant trips, will still value consultations with experienced agents over purely automated solutions.
On the back end, AI is being utilized to analyze thousands of options for flights, accommodations, and activities, optimizing both customer satisfaction and revenue generation for Tourlane. The company currently employs about 500 people, including 150 customer agents, a number that Weselek notes is declining in relative terms as technology enhances efficiency.
Since its founding in 2015, Tourlane has arranged travel for approximately 100,000 individuals, a modest figure compared to the global travel market. However, its growth trajectory is promising, with bookings last year surpassing pre-COVID-19 levels by a factor of five. Despite its achievements, the company remains tight-lipped about its commission structure and valuation. The last disclosed valuation was $242 million during a Series C funding round.
Sequoia Capital, Tourlane’s largest external investor, views the company as well-positioned to capitalize on the personalized travel opportunities enabled by AI. Andrew Reed, a partner at Sequoia, highlights this moment as transformative for the industry, emphasizing Tourlane's potential to deliver unique travel experiences.
Sequoia’s involvement is notable given its history of successful investments in travel-related companies like Airbnb, Skyscanner, and Kayak. Other investors in Tourlane’s latest funding round include Target Global, Jared Smith (co-founder of Qualtrics), and HV Capital.
Tourlane aims to use this funding to advance its product offerings and bridge its path to profitability. Weselek underscores that while valuations can fluctuate due to external factors, the company’s focus is on leveraging its latest investment to create long-term value for its shareholders through sustained growth and innovation.
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