Travel Startup Failures

Urban escape cabins became a debt trap when post-COVID travel normalized and rates rose.

SoftBank-backed event travel marketplace. It left hotel partners holding $100M in unpaid bills.

Found the best hotel price. Couldn't find the exit.

A decade of Russian hospitality listings deleted in one press release.

Thousands of tour operators trusted Bookeo — until the platform abandoned them mid-crisis.

A 15-year bootstrapped travel software company wiped out in 30 days by COVID border closures.

Falabella's 20-year travel empire evaporated in 8 months of zero revenue from COVID borders.

Acquired by Airbnb to conquer corporate travel — then COVID made both missions impossible.

Argentine online travel agency that COVID grounded permanently.

A $100M revenue run-rate couldn't survive fixed leases meeting zero occupancy.

Chilean intercity bus-ticket aggregator that survived seven years only for a pandemic to erase it in weeks.

Latin America's largest OTA shrank 80% overnight when COVID grounded every flight on the continent

A clever savings-sharing model for corporate travel — that needed travelers to exist.

Jay Walker's second disruption of travel pricing — stopped cold by a global pandemic.

Supplied free smartphones to hotel guests to eliminate roaming charges and drive hotel service discovery.

Iceland's ultra-cheap transatlantic dream died at 3am, stranding 10,000 passengers mid-trip.

Africa's travel booking vertical died to make Jumia's IPO paperwork look cleaner.

Millions of travel photos, zero monetization path — Expedia pulled the plug.

Hotels wanted tech — just not from a startup they'd never heard of.

Adventures for everyone — but the startup itself couldn't find its footing.

Amazon tried to disrupt Expedia and Booking.com — shut down in 7 months

An AI-powered travel planning app for iPad that suggested personalized destinations, hotels, and restaurants based on user preferences.

A social travel network that let users coordinate trips and share travel plans with their contact list.

Hipmunk built a better flight search and was acquired by Concur — then SAP decided a beloved flight search app was not part of its enterprise travel platform strategy

Belgium's personalised travel itinerary service was destroyed by COVID on the eve of its growth year

Low-cost transatlantic carrier that expanded faster than the model could support and was broken by COVID.

Family travel membership startup raised $6M but could not compete with established booking platforms

Beloved French train booking startup famous for its UX, acquired by Trainline and rebranded out of existence.

A Sequoia-backed corporate housing startup that built a tech-enabled furnished apartment network and was destroyed when business travel evaporated.

The $475M co-living travel brand that hospitality economics killed

India budget hostel chain raised $5M and was destroyed by OYO legal dispute and COVID simultaneously

An apartment hotel startup that raised $100M for a model that COVID killed within six weeks of raising its Series C.

Curated short-break experiences in Spain — COVID erased the whole concept overnight

Luxury travel flash-sale pioneer acquired by TripAdvisor for $200M, wound down as TripAdvisor's strategy shifted.

Vacation rental meta-search choked by Airbnb and Booking

Day-pass hotel amenity marketplace hit by post-COVID travel reversion to normal patterns

Indian online travel pioneer that IPO-ed on Nasdaq, survived two decades of competition, and was finally destroyed when it was sold to Ebix as Ebix filed for bankruptcy.

Brazilian flight metasearch that survived nine years and Google Flights before COVID removed all air travel demand.

London luxury home rental pioneer acquired by AccorHotels for $168M, slowly wound down as strategy shifted.

Concierge travel for employee relocation and recruiting — COVID eliminated the use case

Istanbul's AI travel itinerary platform was double-hit by currency crisis and COVID

Kenya's intercity bus ticketing platform became a zombie when routes commoditised and margins vanished

AI-powered corporate travel platform founded by Kayak's co-founder, shut down overnight when COVID-19 ended business travel.

Australian travel booking startup for Asian tourists that raised $7M and was liquidated by COVID.

Taxi industry app defense against Uber became a decade-long losing battle

Premium hiking trip planning platform could not compete with AllTrails' free model

Hotel industry's collective answer to Expedia and Booking.com, backed by six major chains — shut down in March 2020 without solving the OTA problem.

Barcelona surprise travel startup sold mystery weekend trips and was building scale when COVID shut the travel market overnight.

Brazil's innovative "mystery deals" travel OTA raised $75M from Tiger Global then collapsed into class-action lawsuits and debt after selling packages it couldn't deliver.

Cuban tourism tech platform killed when Trump re-tightened US sanctions in 2019

The co-living and hostel chain for digital nomads raised $100M and listed on NASDAQ only to file for administration of UK entities in 2023 as hotel economics crushed the wellness narrative.

Luxury travel subscription company that went public via SPAC at 1.1 billion dollars and watched its stock collapse 95 percent as subscribers refused to pay high membership fees for limited supply.

German luxury tailor-made travel startup backed by Lightspeed that raised 60 million euros and could not survive 18 months of COVID-era zero bookings.

The London hotel distribution API startup that raised $20M to modernize how hotels connect with booking platforms and went silent after COVID obliterated travel

Luxury yacht and villa booking in the Adriatic — COVID sank it in one month

Barcelona startup pioneering micro-stay hotel bookings by the hour, devastated by COVID-19.

Berlin B2B travel management startup for SMEs raised €20M, survived four years, and was absorbed by a competitor when COVID erased its entire market.

Despegar became Latin America largest online travel agency with 100 million users and a Nasdaq IPO — then COVID wiped out travel demand in 2020 and the stock fell 85 percent, leaving the company a zombie operating at a fraction of its former scale.

Bespoke travel platform with €100M+ raised destroyed by COVID-19.

Costa Rican ecotourism booking platform unable to survive the COVID travel freeze

Norwegian airline launched into a fuel price storm

Indian travel search that IPOd at $950M and faces delisting after 17 years of competing with MakeMyTrip.

China TripAdvisor swallowed by Ctrip and COVID simultaneously

Dubai's corporate travel management startup was destroyed by COVID and TripActions' Middle East push

WOW Air successor lasted three years before history repeated

Israeli hotel booking aggregator that split stays across multiple rates raised $8M and went dark

The Dutch online travel deals startup backed by Insight Partners raised €50M and went bankrupt in 2018 as margin pressure from Booking.com made profitability impossible.

International flight search specialist that survived 14 years before COVID-19 eliminated its entire market overnight.

Andreessen Horowitz-backed premium remote work vacation rental startup raised $20M and shut down when it could not turn beautiful cabins into a profitable business.

A social travel network that allowed users to create personalized travel schedules and share trip plans with their contacts to coordinate meetings and track journeys.

AI-curated travel itineraries for the millennial spontaneous traveler

Czech virtual interlining flight search engine that was valued at $1B before COVID slashed 90% of its workforce and the rebound never rebuilt the pre-pandemic business.

Biometric airport security company overvalued at $7B before pandemic recovery exposed unit economics

Canadian AI hotel booking via SMS and WhatsApp, acquired by HotelPlanner and absorbed into a larger platform.

An Indonesian budget hotel aggregator backed by East Ventures that survived four years and was destroyed by COVID in two weeks.