More than 100 traveltech companies are now operating in Scotland according to new analysis by a global data platform that provides intelligence on startups, scale-ups, and tech ecosystems.
Dealroom – a Dutch data analytics platform that provides insights into innovation and investment trends worldwide – found that the UK as a whole is now the third biggest investment destination globally for traveltech, after the US and Canada.
Traveltech refers to the technology solutions and digital innovations that power the travel and tourism industry. It combines travel services with technology to improve the planning, booking, management, and experience of travel.
According to the analysis – commissioned by the Traveltech Innovation Hub at Edinburgh Futures Institute, part of the University of Edinburgh – UK traveltech companies have raised an impressive $1.6 billion since 2020.
The investment spans nearly 300 deals, with 2024 marking a record year as investment reached $518 million – largely driven by AI-powered innovation.
And Scotland is emerging as a UK travel tech hub, with more than 100 travel tech startups registered there. One Scottish company, Obvlo, recently raised $2 million to develop AI solutions for producing and maintaining personalised local content at scale for travel and hotel brands such as Virgin Hotels. And Barcelona-based travel management company TravelPerk just announced the opening of a new office in Edinburgh.
Joshua Ryan-Saha, Director of the Traveltech Innovation Hub at the Edinburgh Futures Institute, said: “The findings demonstrate the UK’s position as a global leader in travel technology innovation. Edinburgh, with its world-class AI expertise and dedicated innovation ecosystem, is particularly well-placed to drive this sector forward. The Traveltech Innovation Hub at Edinburgh Futures Institute will continue to support and bring together the emerging traveltech industry locally and globally, encouraging data-driven and futures-focused learning and collaboration.
“The application of artificial intelligence across the traveltech landscape is transforming every aspect of how we discover, book and experience travel. This is creating significant opportunities for innovative companies, particularly those leveraging Edinburgh’s excellence in AI research and development.”
However, the report, the first to examine the UK’s traveltech sector in detail, also highlights challenges within the sector, noting that only 6% of traveltech venture capital funding in Europe went to startups with a female founder between 2022-2025.
Ryan-Saha added: “Clearly, more needs to be done to support female founded companies in Europe and that’s an area the industry needs to focus more effort on in the coming years.”
Callum McPherson, CEO and founder of Obvlo, said: “Scotland offers the perfect combination of talent, world-class universities and robust early-stage investment to develop an exceptional tech ecosystem. By focusing on traveltech, we can leverage our strong tourism economy and the presence of established industry leaders to create a launchpad for the global stage. Obvlo is excited to collaborate with the Edinburgh Futures Institute to drive the future of travel technology in Scotland and beyond.”
Beyond AI, the UK traveltech sector shows strength across multiple sub-sectors with particularly strong investment in SaaS (Software as a Service) for hospitality. Over $480 million was invested in 2024 in solutions that enhance operational efficiency, improve guest experience, and optimise revenue; and more than $60 million was invested in the same period in solutions addressing payments, expense management, and financial services for travellers (Fintech).
The UK’s travel and tourism sector more generally has demonstrated remarkable resilience, with its contribution to GDP climbing to 9.5% in 2023 to reach more than $252.4 billion, surpassing the pre-pandemic peak of 2019, according to the World Travel & Tourism Council.
