Capitalizing on the Rise of Secondary Travel Destinations: A Strategic Investment in Regional Hospitality Tech and Infrastructure

The global travel and hospitality industry is undergoing a seismic shift, with secondary destinations—once overshadowed by iconic megacities—emerging as hotspots for innovation, sustainability, and investment. From 2023 to 2025, these markets have attracted over $157 billion in infrastructure and technology deals, driven by a confluence of factors: shifting traveler preferences toward experiential and eco-conscious travel, the rise of AI-driven personalization, and the economic advantages of lower development costs compared to primary marketsTravel, logistics, and infrastructure: Firms are finding opportunities in technology, changing consumer demographics, and global trade^[1]. For investors, this represents a golden opportunity to capitalize on a $20.12 billion travel technology market by 2033, with secondary destinations poised to outpace traditional hubs in growth and adaptabilityTravel Technology Market Size & Growth Analysis, 2035^[2].

The Tech-Driven Transformation of Secondary Markets

Secondary destinations like Columbus, Ohio; Charlotte, North Carolina; and Boise, Idaho, are leveraging advanced technologies to redefine hospitality. AI and machine learning now account for two-thirds of global travel tech investments, enabling innovations such as AI-powered digital assistants, contactless payments, and predictive analyticsThe Future Of The Hospitality Industry In 2025^[3]. For example, Columbus-based hospitality firms have deployed AI chatbots that deflect 72% of guest queries, reclaiming 13,000–14,000 agent hours annuallyHow AI Is Helping Hospitality Companies in Columbus Cut Costs and Improve Efficiency^[4]. Similarly, Charlotte's investment in the Albemarle Cultural Trail and grade-separated rail crossings underscores a broader trend of infrastructure modernization aimed at enhancing connectivity and supporting high-speed rail networksCity Secures $31.4M in Federal Grants for Infrastructure Projects^[5].

The integration of smart tourism technologies (STT)—including augmented reality, IoT energy management, and gamified guest experiences—is further accelerating this shift. In British Columbia, an AI-driven wildfire detection system preserves forests while supporting tourism resilience, while Tourism Richmond's AI assistant, AskLulu, offers real-time, personalized recommendations to visitorsThe Rise of AI in Tourism Market: A $13.38 billion Industry^[6]. These tools not only improve operational efficiency but also align with the growing demand for sustainable and immersive travel.

Infrastructure as a Catalyst for Growth

Infrastructure projects in secondary markets are reshaping accessibility and scalability. Columbus's $2 billion John Glenn International Airport terminal expansion and LinkUS transit initiative exemplify how strategic investments can boost passenger capacity and urban equityHere Are 5 Key Projects That Will Shape Columbus for Decades to Come^[7]. Meanwhile, Charlotte's $31.4 million in federal grants for the Freedom Drive Mobility Corridor and Albemarle Cultural Trail highlights a focus on equitable access and regional economic developmentHospitality Development in Secondary Markets: Where’s the Next Big Opportunity?^[8]. Such projects are critical for attracting both leisure and business travelers, with secondary markets offering hotel capitalization rates of 7.5%–9%—significantly higher than the 5.5%–6% in primary marketsThe Future Of The Hospitality Industry In 2025^[9].

The logistics and transportation sector is also seeing a surge in tech-oriented deals. Digital order fulfillment systems, cold-chain storage innovations, and AI-driven route optimization are attracting private equity interest, with logistics deal values hitting $98 billion in 2024Travel, logistics, and infrastructure: Firms are finding opportunities in technology, changing consumer demographics, and global trade^[10]. This trend is mirrored in the rise of “noctourism” and personalized travel experiences, which require agile infrastructure to cater to evolving consumer expectationsTravel and tourism trends 2025 - statistics & facts | Statista^[11].

Investment Opportunities in Hospitality Tech

The funding landscape for hospitality tech in secondary markets is robust. Startups like Mews (hotel management systems), Guesty (short-term rental platforms), and Lighthouse (revenue optimization) have raised over $110 million collectively in 2024–2025, reflecting investor confidence in B2B solutionsHow travel startup funding shaped up in 2024^[12]. AI-driven platforms such as Toppi (restaurant and hotel automation) and ZUZU Hospitality (independent hotel revenue management) have also secured significant capital, with ZUZU raising $5.9 million in a Series B extensionNew Funding Rounds in hospitality technology | VentureRadar^[13].

Sustainability-focused ventures are another growth area. Coral Vita, which restores coral reefs, and Byway, a flight-free travel tech firm, have attracted $8 million and £5 million in Series A funding, respectively, underscoring the sector's alignment with ESG goalsNew Funding Rounds in Tourism Tech^[14]. These investments are not just speculative—they are driven by macroeconomic trends, including the global hospitality market's projected growth to $4,993.71 billion in 2024The Future Of The Hospitality Industry In 2025^[15].

The Road Ahead: Strategic Recommendations

For investors, the key lies in targeting markets where technology and infrastructure synergize. Secondary destinations with strong AI readiness (e.g., Columbus, ranked in the U.S. top 25% for tech talentTop Columbus, OH Hospitality Companies 2025 | Built In^[16]) and forward-looking policies will yield the highest returns. Prioritizing B2B tech platforms that enhance operational efficiency—such as cloud-based property management systems (Apaleo, eviivo) and AI-driven revenue tools (RoomPriceGenie)—can capitalize on the sector's 7.55% CAGRTravel Technology Market Size & Growth Analysis, 2035^[17].

Additionally, infrastructure secondaries—seasoned assets with predictable cash flows—are gaining traction, with the market projected to exceed $27 billion by 2027Infrastructure Secondaries: Riding the Tailwinds - HarbourVest^[18]. Investors should also monitor niche innovations like agentic AI in payments, which could disrupt retail and SME banking modelsAgentic AI’s disruption of retail and SME banking | McKinsey^[19].

Conclusion

The rise of secondary travel destinations is not a fleeting trend but a structural shift driven by technology, sustainability, and economic pragmatism. By investing in regional hospitality tech and infrastructure, stakeholders can unlock value in markets that are redefining the future of travel. As the industry moves toward a $20.12 billion tech market and a $4.99 trillion hospitality sector by 2033, the time to act is now.