The travel industry is experiencing a surge in demand for travel, driven by the pandemic’s rebound, but this growth comes with challenges such as over-tourism and sustainability concerns. According to the European Parliament, tourism accounts for 10% of the EU’s GDP, and revenue for the EU-27 travel and tourism market is expected to reach $220.1 billion in 2025.
Booking.com CEO Glenn Fogel emphasizes the importance of sustainability in the industry, stating that it’s critical for its future success. However, balancing sustainability with profitability is becoming increasingly difficult due to rapidly changing regulations. The company faces higher costs and more cumbersome processes under EU regulations such as the Digital Markets Act (DMA), which puts it at a disadvantage compared to global competitors like Google.
Fogel highlights the need for agentic AI in the travel industry, where computers can take care of planning and coordination, reducing the need for human customer support. However, this shift may lead to job losses, particularly in the customer service area. On the other hand, hypersonic travel is being considered as a future option, with potential trips from London to Australia taking just hours.
As the industry navigates these challenges, companies like Booking.com must adapt and innovate to stay ahead. With sustainability and technology playing increasingly important roles, the future of travel will be shaped by these trends.
Source: https://www.euronews.com/business/2025/03/03/will-the-european-central-bank-cut-interest-rates-further-this-week