The Phocuswright Conference kicked off its 30th anniversary with a nostalgic look back at 1994, the year the travel industry event first launched.  Managing Director Pete Comeau and Senior Vice President of Content Mitra Sorrells took to the main stage, highlighting key moments in pop culture and travel tech from that era, including the rise of Netscape Navigator and the first online hotel catalogs.

The duo emphasized the enduring challenges of the travel industry, noting that concerns around customer acquisition, competition, and rising technology costs remain as relevant today as they were in 1994. However, the industry has seen incredible growth, with the global travel market now exceeding pre-pandemic levels and online bookings predicted to account for two-thirds of all travel transactions by 2026.

This year’s conference theme, “The New Agents,” focuses on the disruption of travel distribution by new players and paradigms, particularly artificial intelligence.  Comeau and Sorrells highlighted the increasing influence of AI and social media on the customer journey, with Phocuswright’s own research indicating that 62% of travelers using social media for trip planning made purchasing decisions based on content viewed on those platforms.

With over 1,500 attendees from 40 countries, the Phocuswright Conference continues to be a vital hub for networking, learning, and strategic partnerships within the travel industry.

Expedia Group CEO Ariane Gorin charts a course for AI-powered travel

• Expedia Group is actively exploring and implementing AI across its business
• Innovation and platform enhancements remain a priority
• Gorin is optimistic about the future of travel
• Encourages young women in travel to “blaze their own trail”

Expedia Group CEO Ariane Gorin took center stage at the Phocuswright Conference, discussing the company’s embrace of artificial intelligence, its evolving B2B strategy, and the future of travel in an interview with Mitra Sorrells, Senior Vice President of Content at Phocuswright.  “AI is going to be everywhere,” she said, “and we need to test it everywhere.  Some of the things will work.  Some won’t work.” 

Gorin emphasized Expedia Group’s commitment to testing AI across all facets of its operations, from customer service and product development to marketing and partner support.   But, while acknowledging the potential of autonomous agents, she highlighted the continued importance of human expertise in providing travelers with confidence and support throughout their journey.

The conversation explored Expedia Group’s B2B partnerships, including its work with travel agencies and credit card portals.  Gorin stressed the value of these partnerships in expanding reach and driving innovation, even as the company continues to invest in its own brands.  She addressed concerns about competition from credit card travel portals, stating that Expedia Group aims to be a key player in the evolving landscape of travel distribution, regardless of the platform travelers choose.

Gorin also discussed the company’s recent initiatives, including the launch of Travel Shops, which allow influencers and brands to curate travel experiences within the Expedia app, and the integration of VRBO listings onto Expedia’s platform to diversify inventory and attract new audiences.  She acknowledged the challenges of platform migration and emphasized the company’s focus on delivering a seamless experience for both travelers and partners.

Addressing the recent rumors of a potential acquisition by Uber, Gorin declined to comment, but expressed her belief that consolidation in the travel industry is not necessarily detrimental to consumers, who continue to have a wide range of choices.

Reflecting on her first six months as CEO, Gorin highlighted the importance of prioritizing her time and focusing on areas where she can have the greatest impact. She expressed enthusiasm for the future of the travel industry and encouraged aspiring young women to “Blaze your own trail.  Trust your instinct, surround yourself with good people and have fun.”

Groundbreaking collaboration: Uber, Eurostar, and Omio Tackle the future of ground transport 

“The connected journey is very hard operationally…[but] it is solvable.” – Jennifer Shepard

 A panel of ground transport leaders discussed the evolving landscape of travel beyond air, focusing on customer needs, emerging trends, and the challenges of achieving seamless intermodal journeys.  The panel featured Jennifer Shepard, Global Head of Uber Transit; Francois Ledoux, Chief Commercial Officer of Eurostar; and Veronica De Cuatro, President of B2C Europe at Omio, with Phocuswright Senior Research Analyst Robert Cole moderating.

The panelists agreed that travelers are increasingly seeking control, transparency, and convenience in their journeys.  They demand access to comprehensive information, diverse options, and personalized experiences that cater to their individual needs and preferences.  This shift in traveler behavior is driving the adoption of ground transport alternatives, particularly for shorter distances, as evidenced by the growing popularity of rail travel between major European cities.

The discussion highlighted successful collaborations, such as the partnership between KLM and Eurostar to replace short-haul flights with rail journeys, and Omio’s integration of various ground transport modes onto a single platform.  Uber’s efforts to reduce personal car ownership by partnering with public transit agencies and incorporating diverse modes, including rail and car rentals, into its app were also emphasized.

Despite progress, the panelists acknowledged significant friction points. Maintaining customer support and communication during disruptions, particularly in complex, multi-modal journeys, remains a challenge. Operational hurdles in coordinating real-time information and ensuring smooth transfers between different modes require further attention. Additionally, the panelists stressed the need for standardization, data sharing, and a long-term vision to overcome these challenges and accelerate innovation, as well as the importance of a competitive industry: “Competition is actually good for the industry…and for the customer, ultimately,” said Veronica De Cuatro.

“If you’re working for a company that says AI won’t matter – find another job”, says top investor

Travel industry veteran and investor Eric Blatchford sat down with Chris Hemmeter, Managing Partner at Thayer Investment Partners, at the Phocuswright Conference for a wide-ranging discussion on his career journey, the transformative power of AI, and the urgent need for climate action.

Blatchford, founder of Pi Five Partners, traced his unconventional path from a theater major and bike tour guide to becoming the first business hire at Expedia.  He likened the current excitement around AI to the early days of the internet, emphasizing the importance of embracing change and adapting to new technologies.  He predicted that AI will revolutionize the travel tech stack, necessitating a complete revamp of existing systems and creating opportunities for innovative solutions in inventory management and yield management.  “This new world where everybody’s represented by agents is going to be the catalyst for a complete revamping of the travel tech stack, all the way right down to the PMS to the GDS level,” he said.

The conversation shifted to climate change, a topic Blatchford is deeply passionate about.  He expressed concern that the urgency of climate action has been overshadowed by the hype surrounding AI, but remained hopeful that AI could play a role in modeling climate systems and developing solutions.  Blatchford stressed the importance of connecting with the natural world and advocated for travel closer to home and more sustainable modes of transportation.  Although, among his worries: “I do worry that the travel industry is going to find that certain destinations, because of where they are, are going to become out of bounds to certain kinds of travelers.”

As an investor, Blatchford shared his insights on navigating the uncertain landscape of AI and what he looks for in early-stage startups.  He emphasized the need for experimentation, flexibility, and a willingness to pivot in response to rapid technological advancements. He also highlighted the importance of supporting entrepreneurs and fostering a culture that encourages risk-taking and learning from both successes and failures.