Modernizing Travel: Travel Startups Raise $104 Million

In the rapidly evolving tourism industry, three startups have raised a combined total of over $104 million in funding, showcasing the growing demand for innovative solutions in various sectors.

Exoticca, a platform selling multi-day travel packages, has raised $65.1 million (€60 million) in Series D funding. Led by Quadrille Capital, the funding will be used to enhance the platform's artificial intelligence capabilities, improve customer service, expand into new markets, and acquire new customers. Exoticca's technology allows it to sell complex packages with real-time pricing and availability, reducing prices by up to 30% compared to booking individual components.

Not a Hotel, a company that sells fractional ownership of vacation homes in Japan, has raised $35 million in Series B funding. The startup operates by selling customers a portion of a vacation home, which translates into a set number of nights they can book at the property. With a forecasted sales of $650 million (100 billion yen) in the next two years, Not a Hotel has already signed contracts worth $148 million (22.7 billion yen) and opened nine branches.

Grazzy, a digital tipping software, has raised $4 million in its second round of funding, led by Next Coast Ventures. The Texas-based startup allows guests to pay tips digitally by scanning a QR code, with employees receiving their paychecks the same day, along with their tax information. Grazzy has been approved for use in hotels across major brands and can integrate with their core technology systems.

These investments highlight the growing demand for modernization in the tourism industry, particularly in the areas of package travel, timeshare, and hospitality tipping. The startups' success demonstrates the need for more efficient, affordable, and customer-friendly solutions in these sectors, which have traditionally been slow to adapt to the digital age.