Scotland poised to become major travel tech hub, research reveals

A new report has revealed the UK’s travel tech sector has reached record-level investment, with Edinburgh set to become a major hub for the industry.

Travel technology is known as tools designed to make travel planning and booking more convenient, such as TripAdvisor and Airbnb. It has grown in popularity over recent years, with the sector currently valued at $10.7bn.

Since 2020, UK travel tech companies have raised $1.6bn - around £1.2bn - and last year they secured record-level investment of $518m - around £387m - ranking only behind the US and Canada.   

The analysis, carried out by data and analytics platform Dealroom, was commissioned by the Traveltech Innovation Hub at Edinburgh Futures Institute and is believed to be the first detailed review of the UK’s travel tech sector.

It claimed the uptick in funding was “significantly boosted” by artificial intelligence innovation, with Edinburgh expected to take a leading role in the field. 

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.”

AI is “transforming every aspect of how we discover, book and experience travel”, he added.

Joshua Ryan-Saha

Edinburgh is home to Obvlo, a software firm which recently raised $2m (£1.5m) to develop AI solutions for producing personalised local content at scale for travel and hotel brands such as Virgin Hotels.

Callum McPherson, 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.”

More than 100 travel tech start-ups are registered north of the border, including award-winning firm Appointed, a scheduling software used by brands such as Lego and Harrods.

Callum McPherson

Eglantine Dupuy, research associate at Dealroom, said: “UK travel tech raised $519m in VC funding in 2024, a record high. The travel sector has proved itself to be resilient post-pandemic but it's notable that the number was significantly boosted by AI-focused companies.

“We are seeing many startups using artificial intelligence to supercharge innovation across the sector — from personalised content and booking platforms to revenue optimisation tools.”