SAN DIEGO, United States, Nov. 21, 2025 – Day 2 of Phocuswright brought together industry leaders to debate policy, technology, and the future of hospitality. Below are the key sessions and takeaways.
“Fear is the new barrier”: US Travel Association CEO warns of declining international arrivals
Geoff Freeman, President and CEO of the US Travel Association, condemned the recent government shutdown as “borderline criminal,” citing its impact on consumer confidence and holiday bookings. He urged Congress to exempt air traffic controllers and TSA agents from future shutdowns.
Freeman acknowledged positive steps from the Trump administration, including $13 billion for air traffic control modernization and reduced visa wait times, but warned that inbound travel is declining. “The US will be the only nation in the world this year to see a reduction in travel,” he said, noting Canada’s 25% drop and mixed results across Europe and Latin America.
Fear and negative perceptions are deterring travelers. “People are now thinking about coming to the US the way many of us thought about going to China – wiping devices, fearing detention. That’s really concerning.” He also highlighted the funding crisis at Brand USA, cut by $80 million earlier this year, though bipartisan legislation has been introduced to restore it. He cautioned that marketing alone cannot solve the problem: “Travelers know we have beautiful attractions. What they don’t know is that they’re welcome.”
Visa policies remain the biggest deterrent. A proposed $250 “visa integrity fee” would make the US the second most expensive country to enter, next to Bhutan. “A family of four from Brazil would have to pay $1,000 just for the privilege to come here. That money wouldn’t go to US businesses. It would go to the federal government.”
Freeman warned that US missteps are driving travelers into competitors’ arms. “We don’t understand that we are in a competition. Other countries are removing visa requirements, streamlining customs. We’re not nearly as dedicated to the competition as they are.”
Barry Diller on Google, AI and the future of travel search
AI Ends Google’s Search Monopoly, Travel Remains Resilient, according to veteran leader
Returning to The Phocuswright Conference stage after 20 years, Barry Diller, chairman of IAC and Expedia Group, declared that “travel cannot be disintermediated” even as AI reshapes the industry. He argued that artificial intelligence is disrupting Google’s long‑standing search monopoly, opening new opportunities for travel companies to reclaim visibility and customer engagement. While noting Google’s strength in other areas like YouTube, Diller emphasized that the era of being “serfs in the land of Google” is ending.
He also reflected on his career, philanthropy, and the resilience of travel, urging entrepreneurs to seize opportunities rather than delay: “If you’ve got that yearn in you, grab it.” His remarks underscored both the disruptive potential of AI and the enduring human drive to innovate in travel.
Diller further encouraged the industry to embrace experimentation, noting that those who hesitate risk being left behind as new technologies redefine how travelers search, book, and engage with brands.
“Context unlocks magic”: Google on AI Mode and Gemini
Google’s Group Product Manager James Byers showcased AI Mode, powered by Gemini, as the future of travel search. Rich queries like “weekend trip to a European city with Christmas markets” are answered by combining LLM reasoning with grounded data.
Google announced partnerships with Booking.com, Expedia, Marriott, and others to enable direct booking in AI Mode.
“The future of search is built for travelers. We feel privileged to connect them to that perfect part of their trip in a magical way,” Byers said.
Byers also outlined challenges in agentic booking: technical integration and user expectations. He stressed transparency in commercial relationships and experimentation with familiar ad formats.
“Trust is very hard to gain and very easy to lose. Transparency is first and foremost,” he said.
Byers advised travel companies to maintain strong feed data while surfacing niche content for long, contextual queries. “Use human voices, use facts, get all those little nuances out there.”
Hotels, homes and beyond: Hospitality leaders debate short-term rentals and services
In a hospitality leadership panel, Marriott’s Jennifer Hsieh reflected on the company’s terminated partnership with Sonder, citing liquidity issues and guest protection. Casago CEO Steve Schwab warned of the fragility of arbitrage models, stressing sustainable revenue‑share approaches.
And Airbnb’s Chief Business Officer Dave Stephenson highlighted the revenue opportunity presented by ancillary services such as spa treatments, fridge stocking, and Instacart grocery delivery. Nearly half of Airbnb’s experience bookings in Q3 were not tied to accommodation. “Now you can Airbnb more than an Airbnb,” he said.
Panelists agreed that services are becoming the most experiential component of leisure travel, creating lasting memories.
Hsieh explained Marriott’s focus on professionalism and brand standards in Homes & Villas, which will reach 200,000 homes globally by year‑end. Schwab emphasized Casago’s franchise standards to ensure quality reviews and premium economics.
Stevenson also described accountability measures, including eliminating cleaning fees and elevating top hosts. He also outlined Airbnb’s renewed push into hotels: “Sometimes a home is right, sometimes a hotel is right. We want to provide the right stay for the right person at the right time.”
“Meta on steroids”: Bridge series panelists defend search and spotlight experiences
Skyscanner CEO Brian Batista rejected claims that metasearch is dead. “AI enables meta on steroids. We’ve got a big head start.” He was joined by Mariano Dima from Civitatis, who highlighted tours and activities as the next category to crack. Paul Jacobs, general manager at Kayak, emphasized trust and price transparency.
Batista criticized the industry’s lack of personalization: “Finally, there’s an opportunity to bring memory and relevance to the forefront. It’s not just about lowest price – it’s about the most relevant answer.”
Panelists went on to identify fragmentation as the biggest pain point in experiences. SMEs, which make up 80% of global travel businesses, were praised as the “soul of travel.”
Batista outlined Skyscanner’s business mix: flight search remains core, ads are catching up, and B2B data partnerships with airlines and airports hold the greatest potential.
Discovery is evolving through social commerce, with influencers driving bookings in Asia and Latin America. Skyscanner is tailoring social strategies by market, such as cricket partnerships in India.
Jacobs described how consumer‑grade tech is being applied to business travel, while Batista noted AI productivity gains of 20% among engineers, but stressed the need for new skills: “Critical thinking, creativity, judgment – that’s what makes organizations AI‑ready.”
Jacobs also emphasized hiring people who challenge assumptions and bring fresh perspectives. The panel closed by underscoring tourism’s role in global employment: 373 million jobs worldwide, 48% women, 80% youth. “We must ensure efficiency gains also create jobs on the ground.”
Phocuswright returns next year with a global event roadmap for 2026 – more details to be released soon.