The travel industry has always been cyclical, but what we’re seeing now is a structural shift. By 2026, I believe we will witness a significant rise in private equity (PE) deals and M&A activity across the travel technology ecosystem.

Here’s why.

Strategic Buyers Are Sitting on Record Cash

Strategic travel buyers are holding more than $55 billion in cash reserves.

• Booking.com alone sits on $15.8 billion.

• Expedia Group, Trip.com, and others are similarly well-capitalized.

• Some of these companies review 300–400 deals per year, actively scouting for the right fits.

This level of dry powder isn’t just a buffer, it’s firepower for acquisitions. Travel’s biggest players are preparing to deploy that cash.

Consolidation Across Every Corner of Travel Tech

From B2B SaaS start-ups powering guest operations to immersive experience marketplaces redefining the value chain, we’re already seeing targeted consolidation.

What’s different today is that buyers aren’t just chasing growth for growth’s sake. They’re chasing solutions they can’t easily replace:

• Recurring revenue models that compound value over time.

• Platforms embedded at the center of the travel stack, where switching costs are high and network effects kick in.

• Specialized vertical SaaS tools that own the operator relationship and become indispensable.

The next wave of deals won’t be about vanity metrics. It will be about strategic positioning in a travel ecosystem that is rapidly digitizing and becoming more experience-driven.

Why 2026 Will Be the Inflection Point

2025 will serve as the bridge: ongoing demand recovery and the digestion of post-pandemic pivots. By 2026, several forces converge:

1. Capital deployment pressure - Strategic buyers can’t keep sitting on tens of billions in idle cash.

2. Mature pipeline - The travel tech ecosystem now includes a growing number of companies with proven models, making them attractive acquisition targets.

3. Competitive urgency - The big OTAs and global platforms know they can’t build everything in-house. Acquiring best-in-class innovators is the fastest way to stay ahead.

4. Startup innovation - New players are introducing products and experiences incumbents simply can’t replicate quickly, from AI-powered guest communication to hyper-local distribution platforms.

5. Venture capital tailwinds - With travel tech representing only ~2% of global VC penetration today (source: Roch Venture, LinkedIn), there is significant room for increased investment, which will expand the pool of attractive targets for both PE and strategic acquirers.

The result: a wave of PE and M&A activity that reshapes the landscape, with strategic buyers moving aggressively to secure their place in the next chapter of travel.

The Winners

The companies that will command the highest multiples aren’t necessarily the biggest. They’ll be the ones that are:

• Deeply embedded in the workflows of operators and suppliers.

• Mission-critical, reducing friction across distribution, payments, or operations.

• Proven in recurring revenue, showing resilience regardless of seasonality.

For founders, the message is clear: build something irreplaceable, and 2026 could be the year when strategic buyers come knocking.

Travel is entering a new consolidation cycle. With billions in cash waiting to be deployed, a growing pipeline of proven start-ups, and new innovations reshaping the stack, the stage is set for one of the busiest years of private equity and M&A in recent history.

The companies that succeed will be those that solve fundamental problems, sit at the center of the travel ecosystem, and create value that can’t easily be replaced.