AI Search Could Keep Europe’s Tourists Stuck in the Same Big Cities

0:00Bailey Schulz: ZS is a global consulting and technology firm that partners with companies to improve life and how we live it. Working with the world's top hospitality brands, ZS brings together data, science, technology, and human ingenuity to transform ideas into customer loyalty. They're ready to help you elevate guest experiences, improve operations, and uncover preferences and motivations through their AI-powered solutions. With more than 1 ,700 clients in over 170 countries, ZS has built the expertise, fortitude, and vision to help you deliver impact right where it matters.

0:47Today, Robo is letting some hosts keep their subscription plans. Agoda makes its luxury pitch. and why AI search could keep Europe's crowds right where they are. Welcome back to the Skip Daily Briefing. This is global tourism reporter Bailey Schultz. It's Wednesday, October 21st. Let's get into it. First up, a scoop from Skift. Vrbo ends its legacy annual subscriptions on October 29th, but not for everyone. About 6 % of global Vrbo listings pay a flat fee of around$699 a year, no matter how many bookings they get. When those plans expire, most move to a 12 % commission on each booking. But Skift has learned some listings are being grandfathered in.

1:30Vrbo calls it a very small number and multiple criteria, but they won't say what the criteria are or how many listings qualify. One Alabama property manager calculated a listing only needs a little over$5 ,800 a year in Vrbo bookings before the$699 subscription is the cheaper deal. At 12%, she says, nearly every listing in her portfolio clears that bar. Not everyone is upset. One property manager says 12 % puts Virbo roughly in line with Booking.com and Airbnb, and a flat commission is simpler to manage on the back end. Next up, Agoda wants you to know it can do luxury. The Booking Holdings-owned OTA says it has doubled its premium hotel supply over the past four years.

2:16Last month, it signed with a Singapore-based Capella Hotel Group, adding 12 properties across 8 markets. And Agoda says 5-star searches rose in 3 of its most popular luxury destinations last year. For luxury hotel operators, OTAs can open doors to new customers in international markets. But OTA distribution also carries higher costs than direct bookings. Accor and H-World have estimated drug bookings cost about 5 % of revenue, versus OTA commissions of 10-15%. Agoda wouldn't say whether the Capella deal includes exclusive rates, preferred placement, or loyalty perks. And finally, Europe wants tourists beyond the big cities.

2:57AI search may keep them there. France wants international visitors spending 100 billion euros a year by 2030, without packing Paris even tighter. Ireland, Spain, the Netherlands, and Croatia are chasing similar goals. The problem? Travelers increasingly asked chatbots where to go, and chatbots favored the obvious. SCIF research tested ChatGBT, Gemini, and Cloud with invented traveler personas. In 29 % of cases where the models themselves rated a destination as a strong fit, they never recommended it. So, destinations are adapting. Etat France is rebuilding its website for AI crawlers, and its own AI trip planner suggests Paris in just 5 % of answers.

3:38Tourism Ireland says 19 % of AI answers about the island of Ireland this year use information it supplied. That's it for your Skip Daily Briefing. For more of these stories and everything shaping the future of travel, visit skift.com and sign up for our newsletter at skift.com backslash daily.

4:00Thank you.