German travel startup Tourlane has raised $26 million in a Series D funding round led by venture capital firm Sequoia Capital. The funding will be used to help the company reach profitability, expand its AI-powered technology, and potentially expand into new markets beyond its current bases in France and Germany.
Tourlane is an agent-like platform that allows users to plan and budget their trips, integrating flights, accommodations, activities, and tickets in one place. The startup, founded in 2015, has booked trips for over 100,000 individuals to date, with last year’s performance five times stronger than the year before the COVID-19 pandemic hit.
The company’s CEO and co-founder, Julian Weselek, stated that the firm is investing in generative AI to enhance the user experience and make it more intuitive for customers to find the options they desire. However, he emphasized that this won’t completely replace human agents, as the personal touch is still valued by customers, especially for important trips.
Tourlane is also leveraging AI on the backend to evaluate the thousands of possible combinations of flights, accommodations, activities, and other variables to optimize the chances of providing customers with the best-suited options, while also boosting the company’s revenues.
While Tourlane’s valuation is not being disclosed, the startup’s previous $20 million Series C extension round valued the company at $242 million. Weselek said the company is not focused on valuations, but rather on securing the necessary funding to reach profitability and continue investing in its product and growth.
The latest funding round also included investments from Target Global, Jared Smith (co-founder of Qualtrics), and HV Capital. Sequoia Capital’s investment reflects the venture firm’s continued interest in the travel industry, having previously backed successful startups like Airbnb, Skyscanner, and Kayak.
