The three startups highlighted this week are revolutionizing aspects of the travel industry that have been slow to modernize: tour packages, timeshares, and hospitality tipping. Despite the traditional nature of these sectors, the success of these startups indicates a growing demand for innovation in these areas. Fundraises for the three companies totaled over $104 million, showcasing investor confidence in their business models and potential for growth.
Exoticca, a platform offering multi-day tour packages, secured $65.1 million in series D funding. The Barcelona-based company delivers a seamless booking experience by integrating flights, hotels, meals, transfers, transportation, and activities in one place. This approach enables Exoticca to provide complex packages at prices that are up to 30% lower than booking individual components of a trip. With over 70 destinations in various countries, Exoticca aims to bring multi-day tour packages into the digital age and make dream trips accessible to everyone. The funding will be used to enhance the platform with AI, enhance customer experience, expand into new markets, and attract new clients.
Not a Hotel, a startup that sells partial ownership of vacation homes in Japan, raised $35 million in series B funding. The company allows customers to purchase a portion of a vacation home, which grants them a certain number of nights they can book at the property. Additionally, customers can book nights at other vacation homes within the company’s portfolio through an app. Not a Hotel projects generating $650 million in sales over the next two years and has signed contracts with 597 customers and opened nine locations since its inception four years ago. This funding will support the company’s continued growth and expansion.
Grazzy, a digital tipping software product, secured $4 million in a second seed round. Based in Texas, Grazzy enables guests to pay tips digitally by scanning a QR code, which can be connected to individuals, teams, rooms, or floors. Workers receive same-day payouts along with tax information, making the tipping process more efficient and transparent. Grazzy has been approved for use at hotels under major brands like Marriott, Hyatt, Hilton, and IHG, allowing hotels to integrate the product with their main tech systems. The startup has experienced significant growth in its customer base and aims to continue expanding with the help of this funding.
Each of these startups is addressing a specific need within the travel industry and offering innovative solutions to improve customer experiences and operational efficiency. The funding they have received will enable them to enhance their platforms, expand into new markets, and attract more customers. By leveraging technology and modern approaches, these startups are bringing new perspectives to traditional sectors and driving positive change within the travel industry. As they continue to grow and evolve, these companies have the potential to shape the future of their respective sectors and set new industry standards for innovation and customer service.
