Scottish city emerges as hotspot for ‘traveltech’ investment

Edinburgh has emerged as a hotspot for investment into travel technology businesses.

According to a new study, the UK “traveltech” sector is seeing record investment levels, with the Scottish capital emerging as one of the key innovation hubs, underpinned by advances in artificial intelligence (AI).

The comprehensive analysis from Dealroom, the data and analytics platform, commissioned by the Traveltech Innovation Hub at Edinburgh Futures Institute, part of the University of Edinburgh, highlights how the UK has become the third largest traveltech investment destination globally, behind the US and Canada.

Callum McPherson, chief executive and founder of Obvlo.

The research shows that UK traveltech companies have raised some $1.6 billion (£1.2bn) since 2020 across nearly 300 deals, with 2024 marking a record year as investment topped $518 million - largely driven by AI-powered innovation.

Among the deals spotlighted was the $370m secured by London-based Lighthouse in Series C funding in November 2024. The company uses artificial intelligence to optimise hotel pricing and distribution strategies. Also highlighted is Unravel, which just last month secured $7m in Series A funding for its AI-powered video platform that transforms inspirational content into bookable travel experiences.

Outside of London, Scotland has been hailed as a major UK traveltech hub, with more than 100 travel technology-related start-ups registered there. One company, Obvlo, recently raised $2m to develop AI solutions for producing and maintaining personalised local content at scale for travel and hotel brands such as Virgin Hotels. Meanwhile, Barcelona-based travel management company TravelPerk recently announced the opening of a new office in Edinburgh.

However, the report - the first to examine the UK’s traveltech sector in detail - also highlights challenges within the industry, noting that only 6 per cent of traveltech venture capital funding in Europe went to start-ups with a female founder, between 2022 and 2025.

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 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.”

Callum McPherson, chief executive 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 is said to be showing strength across multiple sub-sectors with particularly strong investment in software as a service (SaaS) for hospitality. More than $480m was invested in 2024 in products that enhance operational efficiency, improve guest experience and optimise revenue.