Chatlyn Raises US$8.6M to Fix Hotel Communication Failures

Chatlyn , the AI-powered communication platform revolutionising how hotels engage with guests, has announced it has raised US$8.6 million (€8 million) in Series A funding. The round was led by Smedvig Ventures, with participation from notable investors including AnyDesk founder Andreas Burike, Austrian transport group Blaguss, business angel Mathias Hiebeler, and a group of strategic hospitality-focused investors. The Vienna-based company also received innovation funding from the Austrian Research Promotion Agency (FFG).

The investment will accelerate Chatlyn’s ambition to position itself as “the AI brain for hotels” — a system designed to streamline hotel operations, from front desk and reservations to marketing and guest services, while optimising guest communications to improve revenue and satisfaction.

A US$10.7 Billion Problem in Hospitality

The global hotel sector is estimated to lose over US$10.7 billion (€10 billion) annually due to fragmented guest communication systems, missed booking opportunities and operational inefficiencies. Properties typically juggle between 8 to 12 messaging platforms, ranging from WhatsApp and email to booking portals and social media. This fragmented approach leaves guests frustrated and hotel teams overwhelmed by repetitive, manual tasks.

“Every day, hotels are missing revenue because a guest inquiry comes in at 2 AM and gets lost in the shuffle, or a staff member can’t quickly find the right response in the right language,” said Nicolas Vorsteher, CEO and Co-founder of Chatlyn. “In today’s world, you lose potential guests when you don’t respond immediately. We want to bring back meaningful conversations to the hospitality industry and free up staff’s valuable time for in-person guest interactions.”

Rapid Growth and Breakthrough Technology

Launched in late 2022, Chatlyn has already expanded its services to over 1,000 properties in 30 countries, with clients including St. Regis Mauritius, Singer Palace Rome and InterContinental Vienna. The company recently opened a regional office in Dubai to capitalise on growing demand within the Middle East’s luxury hospitality sector.

The platform’s appeal lies in several industry-first innovations, including an AI-powered webchat with live room pricing and availability, 98% open rates on WhatsApp guest messages, and comprehensive integration across platforms such as Airbnb, Booking.com, email, and social media. It also supports over 35 languages with real-time translation and integrates with more than 20 leading hotel management systems.

“Chatlyn has fundamentally transformed our guest experience from reactive to proactive,” said Garry Loefgen, Head of Commercial at InterContinental Vienna. “Our AI assistant handles over 70% of inquiries instantly in perfect German, English, Arabic, and many other languages.”

Positioning for Expansion

The new capital will support Chatlyn’s product development, including an AI Booking Assistant and voice support tools, while fuelling its expansion across Europe, Asia-Pacific and the UAE.

“The hospitality sector is experiencing its biggest technological transformation since online booking,” added Freddie Kalfayan, Principal at Smedvig Ventures. “Chatlyn has positioned itself at the epicentre of this AI revolution.”

The firm was recently named Best Chatbot Solution Provider 2024 at the World Travel Awards and continues to gather momentum as AI reshapes hotel guest engagement globally.