AI is squeezing travel companies from both ends of the P&L.  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Read online Travel's Double AI Squeeze AI is squeezing travel companies from both ends of the P&L. GOOD DAY, READERS. Skift CEO Rafat Ali argues the travel industry faces a unique double-sided AI squeeze. On the demand side, AI agents are flooding search systems with queries that never convert, inflating costs that were manageable when humans eventually stopped browsing. On the supply side, executives from Hilton, Priceline, TUI, and Amadeus are openly questioning whether their AI deployments are worth the spiraling token costs. Paradoxically, per-token prices are falling sharply while total AI spend keeps climbing. Ali's bottom line: the squeeze is happening now, and only companies that figure out the economics first will have AI programs that survive the quarterly conversation where the CFO reads the invoice.     Skift Global Forum The executives navigating this in real time are all in one room this September. The CEOs of Hilton, Booking Holdings, Wyndham, Expedia, and Virgin Atlantic - plus 590 companies deciding which AI programs survive the CFO's invoice. Register Now         DON’T MISS THESE STORIES The Two-Sided AI Squeeze That Only Travel Faces By Rafat Ali Travel is the only major industry getting hit from both directions at once: AI search volumes are exploding without converting while total AI token bills internally are rising. GET THE STORY Leisure and Hospitality Leads U.S. Job Growth on World Cup Boost By Bailey Schulz While it's not clear the World Cup's tourism impact will live up to the hype, federal data shows the hospitality sector is staffing up ahead of the tournament. GET THE STORY Accor CEO Bazin’s Final Stretch: An AI Warning and What’s Next for Ennismore By Sean O'Neill CEO Sébastien Bazin said an Ennismore IPO is "one of four or five" possible fates for the lifestyle joint venture. In M&A-speak, that means Accor's board hasn't decided yet. GET THE STORY         Connectivity Is Becoming Travel’s Most Critical Trust Signal HOLAFLY + SKIFT As more of travel moves into apps, live updates, mobile keys, and digital payments, connectivity is becoming a trust test for the entire experience. GET THE STORY         For $7 a week, Skift gives you something the industry is missing – the full picture. Subscribe today for 25% off.         MORNING HEADLINES United CEO Still Wants a Merger With American: ‘This Would Be Really Good for Consumers’ GET THE STORY Cendant and the Origin Story of Asset-Light Travel GET THE STORY United CEO Says Engine Shortages Will Be ‘Biggest Constraint’ in Near Future GET THE STORY Exclusive: Turkish Airlines Reverses Course on Premium Economy, Targets 2028 Launch GET THE STORY Air New Zealand CEO: Economy Bunk Beds Are Not a Vanity Project GET THE STORY Ixigo Acquires Hotel Booking Platform and Invests in AI Startups GET THE STORY Amsterdam Proposes Tourism Tax Hike to 20% GET THE STORY         SKIFT PODCAST NETWORK If Microsoft Can’t Crack AI, Can Hotels? Building AI is one thing. Getting people to actually use it is another. In this clip from Good Morning Hospitality, Brandreth Canaley, Michael Goldin and Jamie Lane discuss reports that only a small percentage of users actively engage with Microsoft Copilot despite it being built directly into their workflow. The conversation explores a bigger challenge facing hospitality and travel companies: if one of the world's largest technology companies is still struggling with AI adoption, how difficult will it be for hotels, airlines, and travel brands to successfully deploy these tools? Technology alone is not enough. User behavior may be the hardest problem to solve. GET THE PODCAST         SKIFT TRAVEL 200 How are public travel companies performing around the world? The Skift Travel 200 pulls the data you need to understand global market movements. Paid subscribers get full access here. GET TODAY’S INDEX SCORE         See more essential travel news in your search results. ADD SKIFT ON GOOGLE         Thanks for reading. We are switching to a new email platform to improve delivery. What does this mean for you? During this transition, these emails might land in your promotions or spam folder. To ensure you don’t miss out, please move this newsletter to your primary inbox.       DEFINING THE FUTURE OF TRAVEL. Update your email preferences or unsubscribe here © 2026 Skift 35 W 31st St. New York, New York 10001, United States Terms of Service