Hospitality Technology Company Lighthouse announced $370 million in funding on Thursday The Series C round is the latest sign of investor demand in this fast-growing space.
This is one of the largest funding rounds ever for a hospitality technology company. it is It’s a big year for financing in this areaand Flyr raises total funding of $300 million August.
London-based Lighthouse (formerly OTA Insight) helps hotels and short-term rental companies analyze their market demand, pricing and positioning. The company last raised $80 million in 2021.
Tourism Venture Capital
As we wrote in a recent Skift research report, Travel and Tourism Venture Capital Trends in 2024we are increasingly seeing more investment in companies focused on making processes more efficient – particularly through technological innovation.
Venture capital investment in companies focused on artificial intelligence, automation and predictive analytics is a key area of investor interest. Our data shows that venture capital investment in AI-focused travel companies will grow 30% annually through 2023.
Chris Hemmeter at Skift 2024 Data & AI SummitThe Managing Director of Thayer Ventures emphasized that there are still huge opportunities for technological advancement in the travel industry, and artificial intelligence may fill this gap:
“We do think there is a decoupling between the technology platforms that are driving the lodging industry, primarily the hotel industry, and travelers,” he said. “This decoupling has reached a critical point and is now driving a classic flip of the iceberg, which Making this one of the best times to be an entrepreneur and investor in this category.”
Investments are increasingly moving toward companies focused on using data more effectively, particularly through technological advancements. In the chart below, we showcase the top companies that have raised the most venture capital funding in their lifetime.
Two of the three major themes are dominated by companies focused on hospitality technology: corporate travel and expense management companies such as Navan and Travelperk, and property management technology companies such as Guesty and Mews.
A recent Amadeus survey revealed growing interest in technology investment among senior decision-makers in travel companies. Investigation shows:
- 94% of decision-makers in the hospitality industry plan to invest in technology within the next year as part of their business strategy.
- Hoteliers plan to increase technology investments by an average of 16% next year.
- Nearly all hoteliers (98%) “recognize the potential of artificial intelligence to bring significant benefits to their business.”
Many hoteliers (more than 70%) currently use operational tools such as operations and maintenance software, but a relatively small proportion (approximately 60%) use business intelligence reporting to drive the daily operations of their hotels.
Business intelligence will be a key area of investment for hoteliers in the coming years, with 35% of hoteliers surveyed by Amadeus looking to implement it more specifically into their business strategy.
Leveraging data and analytics is fundamental to effectively implementing AI tools to drive actionable insights. The potential for AI in the hospitality industry is huge (read our in-depth look at AI in the travel industry: The impact of generative AI on travel), have the opportunity to better upsell products, provide guests with a more personalized experience, and effectively manage data to improve operational efficiency.
Additional reporting by Justin Dawes
