In this episode of the Skift Travel Podcast, hosts Sarah Kopit and Seth Borko sit down with Steve Hafner, CEO of Kayak, in New York City to discuss this year’s travel Megatrends.

They start with Skift’s lead Megatrend for 2025: The growing impact of live tourism on travel trends, highlighting how major events like Formula 1 races and Taylor Swift concerts drive significant travel demand, especially in smaller markets. To capitalize on this, Kayak is using AI to anticipate major travel events by creating targeted landing pages that help users easily find relevant travel options. While these events generate substantial interest, Hafner acknowledged the challenge of effectively monetizing event-driven travel and noted that Kayak is still working on fully integrating ticketing with travel planning, including partnerships with platforms like SeatGeek. 

Another notable trend is the rise of pet-friendly travel, with 6% of Kayak’s searches including pet-friendly filters, showing that travelers are increasingly factoring in their pets when planning trips. Similarly, social media and influencer marketing are becoming critical tools for travel discovery. Kayak is working on a model where influencers can earn commissions when their followers book travel through their recommendations, turning social media into a performance marketing channel. 

Hafner also addressed the rise of AI-powered search engines like ChatGPT and Gemini, which present both challenges and opportunities for Kayak. As AI increasingly helps users find travel options without visiting traditional search engines, Kayak is working to integrate its services into AI models while maintaining direct user engagement. He noted that Google's shift toward AI-driven search results is reducing organic visibility for travel companies, forcing Kayak to invest more in paid advertising and alternative marketing strategies. 

International travel demand is also increasing, particularly to Asia (notably Japan), as travelers seek more diverse experiences beyond the U.S. Hafner attributed this trend largely to social media influence, where platforms like TikTok inspire travelers with visually appealing destinations. Despite concerns over crime and Airbnb restrictions, New York City remains a top travel destination, with high demand driving hotel prices up. 

Looking ahead, Hafner emphasized that Kayak is focusing on improving its mobile app and adapting to AI-driven search trends to stay competitive in an evolving travel landscape. He believes that AI will play a major role in travel booking, with agentic AI potentially automating travel planning and purchases in the near future. As the industry evolves, Kayak is striving to remain a key player by leveraging technology, enhancing user experience, and staying ahead of shifting consumer behaviors.

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