VIENNA— In a major step towards transforming hotel guest engagement, Vienna-based startup Chatlyn has closed an $8.6 million Series A funding round led by London’s Smedvig Ventures. The raise includes backing from notable angel investor Andreas Burike (of AnyDesk), Austrian transport operator Blaguss, and other hospitality-focused contributors. Bolstered by a grant from Austria’s Research Promotion Agency (FFG), the company aims to become the “AI brain for hotels,” centralising multilingual communications and unlocking operational efficiencies in an industry under increasing pressure.
Founded in late 2022 by CEO Nicolas Vorsteher, CTO Michael Urbanek, and CPO Matthias Haubner, Chatlyn already powers guest communication for over 1,000 hotel properties across 30 countries. Among its early adopters are luxury brands such as InterContinental Vienna, St. Regis Mauritius, and Singer Palace Rome.
Tackling the Cost of Communication Inefficiency
Chatlyn’s mission is rooted in solving a very real problem. According to company estimates, poor coordination in guest communications costs the global hotel industry over $10 billion annually in lost revenue. Fragmented messaging across web chats, WhatsApp, emails, and booking platforms often leads to delays, miscommunication, and missed upselling opportunities.
To fix this, Chatlyn offers a multilingual AI assistant that integrates with more than 20 major property management systems (PMS), including Oracle Opera, Apaleo, and Mews. It enables real-time updates on room availability, pricing, and direct booking through guest-preferred channels, all while supporting translation in over 35 languages. Its tools sync with WhatsApp, Booking.com Messenger, SMS, email, and social media, driving significantly higher engagement. WhatsApp-based campaigns boast open rates as high as 98%, compared to the hospitality standard of 20% for email.
A Competitive Landscape in Intelligent Hospitality Tools
Chatlyn operates in a growing and competitive sector. HiJiffy, one of its better-known rivals, offers multilingual chatbots for upselling and concierge tasks, while California-based Akia focuses on lighter guest engagement solutions that emphasise ease of use and rapid ROI. Other players like Alice and Medallia Concierge focus more on backend operations or sentiment tracking, and generalist platforms like Tidio and Podium are beginning to tailor features for hotels.
Still, Chatlyn’s deep PMS integration may be its key differentiator. The InterContinental Vienna, for instance, now handles over 70% of guest enquiries through Chatlyn’s automated system, freeing up human staff to focus on personalised service.
Investors See an Inflection Point in Hospitality
For Freddie Kalfayan, principal at Smedvig Ventures, the investment reflects a broader shift in the hospitality sector. “Hotels are increasingly turning to AI-powered solutions to manage rising guest expectations amid persistent staffing shortages,” Kalfayan said.
The new capital will support Chatlyn in three strategic areas. First, the company will expand its product offering by launching agentic voice-call support and an AI Booking Assistant capable of managing reservations across all guest communication channels. Second, it will push geographic growth into Southern Europe, the UAE, and Asia-Pacific, moving beyond its core German-speaking markets. Lastly, Chatlyn plans to expand its workforce, particularly in AI engineering and customer success roles, to help hotels integrate intelligent communication tools more effectively.
Recognition and Road Ahead
In its short life, Chatlyn has already received industry accolades, including “Best Chatbot Solution Provider 2024” from the World Travel Awards. Its development of contextual AI has earned public sector recognition as well, including support from Austria’s FFG.
Despite its momentum, Chatlyn faces stiff competition. While its technology is robust, adoption in a sector notorious for tight budgets and cautious tech investment will depend on its ability to clearly demonstrate ROI. Its partnerships with premium hotel brands suggest confidence in its approach but as rivals continue to innovate, sustaining growth will hinge on Chatlyn’s agility and depth of execution.
As the global hospitality sector modernises in the wake of pandemic disruptions and evolving guest expectations, AI-driven solutions like Chatlyn could be pivotal. Whether it becomes the standard for multilingual, cross-platform hotel communications remains to be seen, but its ambitions are clear, and its foundation is strong.
