Skift Research: Travel’s Great Recalibration Index
Seth Borko, Head of Research, Skift
THE VERDICT
AI is shrinking the consideration set. According to Borko, the traditional search landscape, filled with numerous links, is being replaced by a curated shortlist of options. Brands lacking a clear identity risk being overlooked in this AI-driven landscape.
PATHS FORWARD
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Earn Gen Z trust through relevant products: Borko highlighted that Gen Z business trips are projected to double by 2030. However, this generation feels anxious about business travel. Brands that address this anxiety can cultivate long-term loyalty.
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Invest in AI visibility: The travel industry currently spends over $10 billion annually on search engine marketing. As high-income and business travelers quickly adopt AI, companies should rebalance their marketing investments to leverage AI opportunities.
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Build distinctive brands: Most travelers perceive hotel brands as similar. In an era where AI curates options, brands must offer distinctiveness for optimal visibility.
WHAT TO WATCH
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Over half of travelers have changed confirmed bookings after discovering better options on social media. This indicates that the post-booking phase is becoming increasingly competitive.
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Older generations express a strong desire to travel now, preferring to spend their savings on experiences rather than leaving them as inheritances. This trend could drive significant demand in the near future.
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