Tourlane Secures $20M Funding to Navigate Pandemic Travel Challenges
Berlin-Based Travel Startup Bolsters Financial Stability Amid Industry Downturn
Berlin’s Tourlane, a tech-driven travel planning platform, has raised an additional $20 million in an extension of its 2019 Series C round. This brings the total Series C funding to $67 million and the company’s overall funding to over $100 million. The investment comes at a critical time as the travel industry grapples with unprecedented challenges due to the COVID-19 pandemic.
Key Details of the Funding Round
- Valuation: Maintained at $242 million (per PitchBook and insider sources)
- Lead Investors: Sequoia Capital and Spark Capital (co-leaders of the original $47M Series C)
- Participating Investors: DN Capital, HV Capital, and company founders
How Tourlane Plans to Use the Funds
The fresh capital will provide Tourlane with the financial stability needed to:
- Enhance its technology platform for seamless trip planning
- Improve customer experience with flexible booking options
- Prepare for post-pandemic recovery as travel demand rebounds
“This pandemic is an opportunity to rethink travel,” said Julian Stiefel, Tourlane’s co-CEO and co-founder. “We’re investing in our technology while ensuring maximum flexibility for our customers.”
The Impact of COVID-19 on Tourlane
The global travel restrictions have significantly affected Tourlane’s operations:
- Booking rates dropped to 20% compared to pre-pandemic levels
- Customer service queries surged by 30% in March 2020 as travelers sought cancellations/reboots
- Operational challenges arose from issuing refunds before receiving them from suppliers
Workforce Adjustments
- Pre-pandemic: ~290 employees
- Current: ~250 employees (with partial furloughs for half the team under Germany’s government support program)
Glimmers of Hope in a Turbulent Year
Despite the challenges, Tourlane saw temporary rebounds during summer 2020:
- Record bookings in low-risk destinations like Iceland
- Increased activity as travel restrictions briefly eased
Industry Context: Travel Startups in Crisis
Tourlane’s funding comes amid a wave of turbulence across the travel sector:
- Airbnb filed its IPO despite massive revenue drops
- Domio is shutting down after raising $100M+
- TripActions, Zeus Living, and Sonder implemented major layoffs
- Berlin’s GetYourGuide raised $133M via convertible note
Looking Ahead: Vaccines and Recovery
Tourlane’s leadership remains optimistic about the future:
“Our team adapted quickly to this new reality,” said Julian Weselek, co-CEO and co-founder. “This investment validates our strategy and positions us for the rebound.”
Andrew Reed (Sequoia Capital) added: “Tourlane is redefining travel experiences. We’re excited to support their next phase of innovation.”
With vaccines rolling out globally, Tourlane aims to capitalize on pent-up travel demand while maintaining its customer-first approach in a post-pandemic world.
