Phocuswright Europe 2025 kicked off in Barcelona last week, welcoming over 600 attendees from 20+ countries to discuss the future of travel. The event highlighted the booming travel industry, tempered by geopolitical and economic concerns. A key theme was the disruption in travel distribution, with technology reshaping customer loyalty and content control. Speakers emphasized AI’s growing role, with insights from TripAdvisor, Expedia, Accor, Booking, and Google. The conference also featured startup pitches, investment trends, and exclusive research on traveler behavior, AI adoption, and sustainability.
Sustainability and AI remain top priorities
Sustainability remained a priority, with Trip.com Group sponsoring carbon offset initiatives for the event. Attendees engaged in interactive polls and networking, reinforcing Phocuswright’s commitment to industry collaboration. Research presentations covered AI-driven consumer trends, startup funding, and ski travel insights.
“The AI train has left the station” – Phocuswright Europe 2025 on AI in travel
AI adoption in travel: growth, trust, and future potential
At Phocuswright Europe 2025, new data revealed the growing adoption of generative AI among leisure travelers, with usage increasing across the UK, France, and Germany. Despite AI’s rapid evolution, human interaction remains preferred for key travel experiences, such as planning and guided tours. While 47% of travelers favor digital interactions for tasks like check-ins and reservations, only 29% prefer AI-driven tour experiences, highlighting the ongoing balance between automation and human touch.
“The AI train has left the station” – but most travelers still waiting
Speaking on AI’s role in travel, Alicia Schmid, Director of Research at Phocuswright, said: “The AI train has long left the station. It’s picking up a few travelers along the way, but the majority are still on the platform.” While AI is increasingly shaping trip inspiration and research, trust, accuracy, and data privacy remain barriers to full adoption. Experts predict AI-powered booking will gain traction faster than past digital innovations, though travelers still seek control over decisions. Digital wallets are emerging as a frictionless travel enabler, allowing instant verification of passports and IDs at airports and hotels, potentially reducing wait times and improving traveler satisfaction.
Will AI replace Google for trip planning?
As AI continues to evolve, optimizing content for AI-driven search will be crucial for travel brands. The session concluded with a thought-provoking question: will travelers soon turn to AI platforms instead of Google for trip planning? “I’ve heard a couple of times over the past few days that people aren’t turning to Google first anymore, they go to Gen AI,” Schmidt observed. While the answer remains uncertain, Phocuswright’s Traveler Trend Report promises further insights into how AI is reshaping consumer behavior in the travel industry.
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“Local knowledge on a global scale” – Obvlo’s AI-powered travel content
Personalized travel content that drives engagement
Callum McPherson, founder and CEO of Obvlo, introduced the company’s vision to create local knowledge on a global scale by transforming outdated, generic travel content into personalized, AI-driven experiences. “Travel content is all about getting you discovered and inspiring travelers,” he explained, emphasizing how Obvlo’s content engine helps brands generate on-brand, scalable content that adapts to each traveler’s journey. The platform integrates with websites, apps, trip planners, and even chatbots, ensuring SEO-optimized, engaging content that enhances traveler interaction and boosts conversion rates.
AI-driven insights and measurable ROI
McPherson highlighted the measurable impact of AI-powered content, revealing that Obvlo’s clients see ROI between 10:1 and 80:1, with higher booking rates and longer stays. “We have an average 90% guest satisfaction score with hotel groups,” he noted, showcasing how AI-driven recommendations improve traveler experiences. By analyzing engagement data, Obvlo provides deep insights into traveler preferences, from who they’re traveling with to their favorite cuisine, feeding valuable data back to brands. Already working with Virgin, Wild Pig, Bob W, and major travel agencies, Obvlo is positioned as a leading AI-powered content solution in the travel industry.
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“A wait-and-see moment for travel startup funding” – Phocuswright Europe 2025 insights
Funding trends: a decline after record highs
At Phocuswright Europe 2025, new research revealed a slowdown in travel startup funding, following a record $16.1 billion raised in 2021. While 2022 remained strong, funding dropped significantly in 2023 and 2024, reaching just $5.3 billion and $5.7 billion, the lowest levels since 2015. Phocuswright’s database of nearly 8,000 startups tracks these trends, offering insights into how AI is reshaping investment strategies. “Right now, travel startup funding is in a wait-and-see moment,” Mike Coletta, senior manager of research and innovation at Phocuswright, noted, highlighting uncertainty but also potential for future growth.
AI’s dual impact: leaner startups vs. increased competition
The presentation explored AI’s evolving role in startup funding, suggesting that automation could make future startups leaner, requiring less capital. However, paradoxically, AI-driven efficiency could also trigger an explosion of new companies, increasing competition and the need for funding. “Capital loves productivity. If AI is making companies more productive, more capital will probably chase that increased return,” Coletta explained. While uncertainty remains, Phocuswright predicts a resurgence in travel startup funding, driven by AI innovation and evolving business models. Entrepreneurs were encouraged to participate in Phocuswright’s ongoing startup survey, available at the conference booth.
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“AI agents will reshape travel but no one has it figured out yet”
The industry’s biggest disruptor isn’t competitors; it’s travelers missing out
At Phocuswright Europe 2025, Pepijn Rijvers, President of Viator, challenged the notion of competition, arguing that the biggest missed opportunity in travel isn’t rival platforms, it’s travelers failing to fully experience cities. “The largest competition today is people visiting cities not fully enjoying them,” he said, positioning TripAdvisor’s marketplace integration as key to driving awareness and adoption of experiences. Meanwhile, Airbnb’s expansion into experiences is understood but not necessarily aligned for partnership, as Rijvers explained, “Volume and quality are where I would play.”
AI agents will do the booking, but the infrastructure isn’t ready yet
In a bold statement on AI’s future, Tripadvisor’s President and CEO Matt Goldberg warned against premature confidence in AI automation: “Anybody who thinks they have it figured out is nuts.” Despite partnering with OpenAI on agentic AI, he admitted the industry is still in early experimentation mode, with AI assisting rather than fully replacing human-driven trip planning. Rijvers expanded on the challenge, explaining that AI’s infrastructure remains prohibitively expensive, delaying widespread monetization. However, the emergence of agentic nodes – AI models communicating efficiently rather than crawling full websites – is already reshaping search and discovery, paving the way for major disruption in travel booking.
The future of travel currency is trust, not cash
In a rapid-fire session, Goldberg and Rijvers agreed that reputation – not cash or points – will be the most valuable travel currency within five years. As AI-driven recommendations become more sophisticated, influencers and personalized experiences will dominate consumer decision-making, shifting the industry toward trust-based interactions. While AI agents are gearing up to revolutionize travel, Goldberg emphasized a cautious approach, saying, “We’re experimenting, learning, and making bets.” The travel tech space is evolving fast, but the winners will be those who adapt without overestimating AI’s readiness.
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“AI will transform hospitality, but only for those ready”
AI adoption is a once-in-a-generation opportunity
At Phocuswright Europe 2025, Sean Fitzpatrick, CEO of Lighthouse, emphasized that AI is the most disruptive technology of his lifetime, urging hoteliers to prepare for the shift. “If you don’t have good data, good content, then AI is truly garbage in, garbage out,” he warned, highlighting the need for data readiness. Companies like Muse and Hostaway, with open APIs, are expected to accelerate innovation in hospitality faster than ever before. Fitzpatrick stressed, “Hoteliers have a unique moment to take full advantage of AI. The next five years will be transformative.”
Big companies will thrive; small businesses must adapt
Marcus Rader of Hostaway outlined how AI’s greatest benefits will go to larger companies, explaining that scale is key. “AI will mostly benefit the bigger companies rather than the small ones because you need a business model that allows for multiple incremental improvements,” he stated. The ability to increase efficiency by 20% repeatedly could massively accelerate growth, but smaller companies may struggle without sufficient data. Rader cautioned that without customers, even AI-driven improvements won’t create success, underscoring the importance of foundational business strength.
AI automation will redefine hotel management
Richard Valtr of Muse pointed out that hoteliers must rethink operations, asking, “How can I automate all of the boring bits of running a hotel?” He envisions AI handling property and booking management systems on autopilot, freeing staff to focus on service expansion and guest experience. “AI will let hoteliers do more: serve more guests, add more services,” he predicted. Hotels that integrate AI-driven automation will see massive efficiency gains, positioning them for competitive advantage.
The race to AI readiness starts now
The panel agreed that AI will revolutionize hospitality, but only businesses prepared to harness data and automation will reap the rewards. Fitzpatrick reinforced the urgency, stating, “AI is not just once in a generation; it’s happening now.” As AI-driven personalization, booking, and payments evolve, hospitality brands must lead the charge, not just react. The session concluded with a challenge: hoteliers who fail to act now risk being left behind in an industry about to change forever.
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“AI-powered travel planning should be one click away”
A future of effortless trip planning
In an executive interview, Expedia Group’s Chief Product Officer, Shilpa Ranganathan, emphasized the growing need for AI-driven travel assistants that simplify complex trip planning. “It probably took you hours to cobble together that trip with multiple people traveling in from different countries. How can we make that a single-turn, single-click action?” she asked. While booking flights and hotels is seamless, travelers still struggle with fragmented trip logistics. Ranganathan sees AI as a trusted companion that can automate real-time coordination, ensuring smooth experiences from booking to arrival.
AI agents must communicate across platforms
Ranganathan stressed the importance of agent-to-agent communication, envisioning a future where AI not only helps travelers book but also connects different services autonomously. “If a flight gets delayed, who tells the hotel? Who tells the car rental place to keep your keys on the counter?” she asked, highlighting the gaps in current AI travel solutions. Expedia has already begun integrating AI-powered servicing agents with discovery and shopping agents, but the next step is connecting AI systems across companies worldwide, enabling seamless, personalized experiences.
Trip experiences need an upgrade
While AI has improved flight and hotel bookings, Ranganathan sees trip experiences as an untapped opportunity. “We do a good job getting you there, but what about once you arrive?” she noted, advocating for AI-driven local experiences that adapt in real-time. She envisions AI offering tailored activity suggestions, coordinating last-minute changes, and making recommendations based on traveler preferences, ensuring a more dynamic and responsive travel experience.
The race to AI-driven travel is on
Expedia’s push for AI-driven travel signals a shift toward hyper-personalized and automated experiences, with agent integration and seamless coordination at the forefront. Ranganathan’s vision challenges the industry to move beyond search and booking, creating an AI ecosystem that transforms travel into a fluid, intuitive journey. The session reinforced a clear message: Those who fail to innovate risk falling behind in an industry set for rapid AI acceleration.
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“Hotels must shift from service providers to experience orchestrators”
Augmented hospitality means more than just a room
At Phocuswright Europe 2025, Mariya Donat, Director Digital Content Strategy EAME, Hyatt Hotels Corporation, emphasized that hospitality today must move beyond traditional services to deliver memorable guest experiences. “When guests travel, they’re looking for more than a room, a bed, a breakfast, they’re looking for an experience,” she explained. The concept of augmented hospitality focuses on creating seamless, personalized moments both inside and outside hotel walls, ensuring guests engage with the brand even when they aren’t traveling.
The challenge is breaking out of tech silos
Donat highlighted a key industry challenge – fragmented technology preventing true experience orchestration. “Each one of us right now is in our silos – the tech, each provider in their own silo,” she noted. The future of hospitality innovation lies in integrating services so guests experience seamless transitions, whether booking, checking in, or engaging with hotel amenities. The goal, she stressed, is to ensure guests interact naturally with different providers, without realizing multiple technologies are working behind the scenes.
Hotel general managers must evolve
Hospitality leadership, particularly hotel general managers, must adapt to new expectations. Donat pointed out how the role has expanded dramatically, saying, “The role of a GM today is super different from ten years ago.” Beyond operational excellence, managers must now be commercially savvy, build guest loyalty, and leverage technology to deliver experiences, not just rooms. This shift demands a new mindset, where hoteliers focus on creating value beyond ‘heads in beds.’
The hospitality industry is moving toward tech-powered guest interactions, but success depends on redefining the role of hotels in travel. Donat also reinforced the urgency of this transition, explaining that brands must shift from passive service providers to active experience facilitators. Hotels that embrace technology, prioritize seamless orchestration, and rethink leadership roles will be the ones shaping the future of hospitality.
