AI Travel Startup Raises $295M to Modernize Online Reservations

FLYR has raised $295 million to accelerate product development and delivery for the travel industry. 

The San Francisco-based company markets AI products to airlines and hospitality businesses to help manage costs and improve their reservation systems.

FLYR raised $225 million in a series D round led by WestCap. Other investors included BlackRock, Streamlined Ventures, South American airline Avianca and a subsidiary of the Abu Dhabi Investment Authority.

The company also secured  $70 million in credit, led by Vista Credit Partners.

The new funds bring FLYR's total raised to $500 million, with the startup stating it is one of the best-funded travel technology companies in history.

FLYR plans to use the funds to scale and accelerate its reservation system product, already used by JetBlue, Air New Zealand and Virgin Atlantic. The company also works with hospitality brands Best Western Scandinavia and The Boca Raton.

"As the world around us continues to advance, travel has remained in the past, reliant on an oligopoly of archaic technology vendors with misaligned incentives. FLYR makes the future possible today, helping travel providers create the experience customers want, while operating with speed and efficiency," said Alex Mans, FLYR founder and CEO.

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FLYR's products are about modernizing software for travel firms, providing cloud-based business intelligence products for hospitality firms or seamless sales platforms for passengers looking to purchase tickets.

Its reservation systems aim to help travel companies looking to gain insights from customers to help boost revenues while modernizing online customer-facing experiences.

The startup reports a period of growth, having recorded 290% revenue increases over the past 12 months.

"This capital raise is a testament to the growth FLYR has achieved thus far and we're excited to continue supporting the world's largest travel providers at pace," Mans said.

As part of the investment, Laurence A. Tosi, managing partner and founder of WestCap, joins the FLYR board of directors. Tosi was previously the chief financial officer of holiday rental platform Airbnb.