YGO Secures 8 Million Euros for AI Infrastructure in the Travel Industry

The Berlin-based travel tech company YGO has closed a Series A funding round totaling eight million euros. The round was led by the European venture capital firm Ventech. Other investors include Sake Bosch, Caesar Capital, and several business angels. The funding will be used primarily for international expansion, the growth of sales activities, and further technological development.

YGO is developing an infrastructure that connects existing booking systems from airlines, hotels, and tour operators with AI applications. In doing so, the company is responding to changes in digital travel planning. While travelers have primarily used search engines, comparison sites, and booking platforms up to now, AI assistants are becoming increasingly important in searching for and compiling travel offers.

The challenge lies in the technical integration. Many existing systems in the travel industry were not designed for automated communication with AI agents. YGO aims to bridge this gap by structuring travel information and making it available to AI applications via its platform.

AI Agents as a New Sales Channel

YGO’s technology enables AI systems to search for and compare travel offers and process bookings through providers’ existing systems. In doing so, various travel components—such as flights, hotels, and activities—can be combined.

For travel companies, this approach opens up additional sales opportunities. In particular, it could reduce dependence on online travel agencies and comparison platforms. According to YGO, such intermediaries typically retain between 15 and 25 percent of the booking value.

The platform can be integrated into both company-owned websites and apps as well as external AI assistants. In addition, it supports applications such as semantic search, personalized recommendations, and automated customer service.

“The travel industry has enormous amounts of data, but the underlying systems were not designed for a world in which AI plays a central role in search and booking,” explains Julian Kögel, co-founder and CEO of YGO.

First Customers and International Growth Plans

Customers to date include Condor, Bentour, and the GetAway Group, among others. According to the company, YGO was able to reduce manual operational effort by 90 percent for one airline client while simultaneously increasing the conversion rate by 20 percent. For another client, the average booking value increased by a factor of 2.4.

The startup is also reporting its first growth figures. Within six months, YGO achieved seven-figure annual recurring revenue (ARR). To date, travel bookings totaling more than 15 million euros have been processed through its own infrastructure.

Behind YGO are founders Julian Kögel, Willi Ibbeken, and Sebastian Kreutzberger. The team brings experience in developing AI technologies as well as in building and scaling travel companies. They are supported by Ralf Usbeck, the founder of the travel tech companies TravelTainment and Peakwork.

With the new funding, YGO aims to intensify its collaboration with European travel companies and establish the platform internationally. A key factor in the company’s future development will likely be how quickly AI-based booking solutions gain traction in the travel market and establish themselves as an additional sales channel.