Phocuswright Conference - Day Three Insights!

Couldn’t make it to Phoenix for Day 3 of the Phocuswright conference? No worries—our CTO, Matt Chapman, is here with the key takeaways. The final day was a deep dive into artificial intelligence, the challenges of legacy systems, and the critical role of culture in driving innovation.

Here’s what stood out:

Day 3 at Phocuswright was an exciting dive into the future of travel, where artificial intelligence (once again) took centre stage - alternating between saviour and disruptor. From predictive maintenance to personalised trip planning, the discussions highlighted both the boundless potential and the substantial challenges of integrating AI into travel tech.

AI: Buzzword or Bedrock?

AI isn’t just a buzzword anymore - it’s quickly becoming the backbone of travel tech innovation. From automating customer support to predictive trip planning, the potential is enormous. Companies are even experimenting with AI agents that can interpret images, assist in-store, and suggest flights based on abstract preferences like “neighbourhoods that feel like Soho.”

The boldest idea of the day? Letting AI lead the tech stack instead of simply sitting on top of it. But as one panellist joked, “Let’s hope AI leads better than our last quarterly planning session!”

Tech Debt: The Innovation Anchor

While AI dazzles, legacy systems remain a stubborn obstacle. Speakers highlighted tech debt as the industry’s Achilles’ heel, with some warning that ignoring it will certainly lead to failure. Travel remains overly siloed, focusing on individual parts of the customer experience rather than creating a cohesive user journey. Addressing these gaps could unlock entirely new business models and revolutionise how we think about travel.

Culture Eats AI for Breakfast

The consensus was clear: AI may be a tool, but people and culture are what drive success. Companies shared how regular cross-department collaboration, a clear vision, and exceptional talent make all the difference. One speaker nailed it: “To succeed, you just need to be exceptional.” It’s that easy…

However, not everyone is excited about AI’s rise to fame. In some markets, employees fear it could threaten their jobs. The solution? Training teams to see AI as a tool to empower them - not replace them. Because even the smartest AI can’t replicate the creativity of a motivated team (or a well-timed joke).

The True Cost of Innovation

AI may promise efficiency, but it doesn’t come cheap. Running large language models (LLMs) is significantly more expensive than traditional methods, so businesses need to be strategic in where they deploy these tools. The value must outweigh the complexity and cost.

The Road Ahead

The future of travel could look radically different in just five years. AI agents may transform how we interact with booking tools, personalisation could become seamless, and younger generations might shift their searches from Google to TikTok and Instagram.

But there are risks. Panellists warned that if companies like OpenAI can’t monetise effectively, the true cost of these tools could upend the landscape. And let’s not forget the looming question: What happens when the AI platforms we rely on start building their own tools, potentially cutting us out of the loop? More Skynet than Skyscanner.

Final Thoughts

Day 3 was a reminder that AI is here to stay, but it’s not a silver bullet. Success will require a delicate balance of innovation, integration, and introspection. As one speaker wisely noted, “Focus on solving problems, not chasing shiny things.” Wise words for an industry hurtling toward an AI-driven future.

And, as the conference wrapped, one can’t help but wonder: In ten years, will we even remember how to type?