What’s Behind the Likely Increase in Corporate Travel M&A in 2025?

2024 was a very dynamic year for M&A in the corporate travel space. We tracked around 25 M&A and fundraising deals in our database involving traditional or next-generation TMCs and corporate travel tech companies. But we think that 2025 could be bigger still.

In general, traditional TMC consolidation in 2024 was predominantly regional, reflecting the need for these players to join forces, scale up and enhance their services. Notable funding rounds included Hotel Engine’s $140m round led by Permira, valuing the company at $2.1bn; Ramp’s $150m D-2 round at a $7.65bn valuation; TravelPerk’s $104m Series D at a $1.4bn valuation; and Bizaway’s €35m round from Mayfaire Equity.

We think 2025 will see even more M&A as, although some macro and geopolitical uncertainties persist, generally the capital markets are well-positioned for 2025 as many previous roadblocks have been cleared. VCs are seeking exits from the last cycle, mega-cap tech companies are resuming deal activity and the PE industry has more than $300 billion in dry powder waiting to be deployed. Additionally, PE-backed consolidation platforms continue to expand through M&A. Together, these factors point to a vibrant deal market in 2025.

For the IPO market and mega-tech investors, size is a key driver. The California-based corporate travel and expense management platform Navan is preparing for an IPO after successfully establishing a global presence, supported in part by accretive acquisitions over the past years. Its latest acquisition was Italy-based Reget International, completed through its UK subsidiary Reed & Mackay, which Navan acquired in 2021. The company has stated it will continue to consolidate the fragmented industry.

In the European travel and hospitality tech sector, we have identified several mid-market platforms with $100m+ in revenue that could grow into unicorns in the coming years. These companies, including Travelsoft, Hostaway, Mews, and Lighthouse, have raised multiple rounds of funding from reputable PE/VC investors and are poised to drive the next stage of growth, particularly through M&A. Many are expanding internationally and positioning themselves as global category leaders.

Specifically in corporate travel tech, the Barcelona-based next-generation platform TravelPerk, backed by SoftBank Investment Advisors, Kinnevik, General Catalyst, Blackstone and other prominent VCs has made M&A a key growth strategy. Its recent acquisition of AmTrav, a Chicago-based corporate travel company, aims to accelerate its U.S. expansion.

We are also seeing growing interest in horizontal consolidation, with strategic leisure travel players expanding into the corporate space. This trend is driven by the attractiveness of the corporate travel sector, including its market depth, fragmented structure and strong growth prospects, as well as potential synergies in supply connectivity. Additionally, strategic buyers are motivated by the robust post-covid business trading.

Needless to say the tech-enabled, newer players have a natural edge when it comes to fundraising that the more traditional legacy players do not, as illustrated by the latest deals (Travelperk, BizAway…) – so we’re more likely to see them aquiring than being aquired, but there might be exceptions of course.

For small and mid-sized players, 2025 will be a critical year for strategic planning. It’s essential to outline and prepare various options in advance, allowing the best course of action to be executed based on the clarity of 2025 business performance (and corresponding valuation) and future opportunities. One thing is for sure, it would be a mistake to rule out the possiblity of M&A or view it as a distraction from your TMC’s core business. Even if your partner TMC isn’t thinking about it, we can assure you that their competitors are.