As a leading voice in hospitality and event management, Katarina Railko possesses a unique perspective on the forces shaping the travel industry. Drawing on insights from Phocuswright analysts, she joins us to discuss the near future of travel, a landscape where technology like agentic AI and biometrics isn’t just about efficiency, but about deepening the human desire for personalized, meaningful journeys. She’ll explore how these advancements, coupled with the rising influence of markets in the Middle East and Asia, are setting the stage for a transformative era by 2026.
The article mentions agentic AI will create more personalized travel. Can you walk us through a step-by-step example of how this AI might help a traveler plan a unique trip that reflects their personal values, moving beyond today’s basic recommendation engines?
Of course. Imagine a traveler who is deeply passionate about environmental conservation and personal wellness. Today, they’d spend hours searching for “eco-lodges” or “yoga retreats.” By 2026, an agentic AI would act as a true digital concierge. The traveler would simply state their core values and desires. The AI would then not just find a hotel, but craft an entire narrative. It might identify a new, high-end, eco-friendly resort in the Middle East, cross-referencing its sustainability certifications. It would then build an itinerary around it—booking a farm-to-table cooking class with a local chef, scheduling a personalized wellness retreat on-site, and even suggesting low-impact transportation options. It moves beyond booking to true, values-based experience curation.
You highlighted biometrics for streamlining airport and hotel processes. Beyond just convenience, what specific security enhancements do they offer, and what are the biggest data governance challenges the industry must solve to implement this technology and earn traveler trust?
The convenience factor is obvious, but the security improvement is profound. Biometrics offer a near-foolproof method of identity verification. This dramatically reduces the risk of identity theft or someone traveling on false documents. It’s a move from “what you have” (a passport) to “who you are.” However, this power comes with immense responsibility. The biggest hurdle is creating a unified, secure framework for digital identities. Travelers will rightfully ask: Who owns my biometric data? How is it being protected from breaches? To earn their trust, the industry must establish transparent data governance policies through widespread cooperation. It’s a massive undertaking that requires overcoming both regulatory and technological barriers to ensure a traveler’s most personal data is safe.
The piece points to the Middle East and Asia as key influencers. Could you share a specific anecdote of how an outbound traveler from India, or a new eco-friendly resort in the Middle East, is already shaping global trends and destination planning?
Absolutely. We’re seeing a fundamental shift in demand from emerging outbound markets like India. A few years ago, the goal might have been a whirlwind tour of European capitals. Now, that same affluent traveler is seeking something deeper. For instance, a destination marketing organization I follow is no longer just advertising landmarks; they’re creating campaigns targeted specifically at the Indian market that highlight personalized wellness retreats and luxury, experience-driven tourism. This directly responds to the investments we see in places like the Middle East, which are building these incredible eco-friendly resorts. So, the destinations are building the supply, and the new global traveler from Asia is providing the demand, creating a feedback loop that is actively reshaping what a “luxury vacation” even means on a global scale.
The forecast includes sophisticated AI-powered pricing. How does this differ from current dynamic pricing models? Please describe the key factors these new models will use to adjust prices in real time, and what steps companies should take to prepare.
Current dynamic pricing is relatively simple—it looks at seasonality, day of the week, and how many seats are left. The AI-powered models of 2026 will be on another level entirely. Think of it as moving from a two-lane road to a superhighway of data. These systems will process multiple factors in real time: competitor pricing, flight availability, major city-wide events, even weather forecasts. They’ll analyze this data not just to maximize revenue, but also to enhance customer satisfaction by offering a price that feels fair and relevant to the moment. To prepare, companies must invest heavily in their data infrastructure. It’s not enough to have the AI; you need the talent and systems to manage and interpret these complex, fast-moving datasets.
What is your forecast for the human element in travel? As AI and biometrics become more integrated into the journey, how will the role of human travel agents and hospitality staff need to evolve to remain essential?
My forecast is that the human element will become more important than ever, but its role will fundamentally change. Technology will automate the transactional parts of travel—the seamless check-ins, the simple bookings, the basic information requests. This liberates human staff from mundane tasks and allows them to become true “experience enhancers.” A hotel concierge will have more time to share a personal story about a local artist or recommend a hidden trail the AI doesn’t know about. A travel agent will evolve into a consultant, specializing in complex, multi-destination journeys that require creativity and deep human understanding. Their value will shift from processing logistics to providing the authentic connections and personal growth opportunities that travelers are increasingly craving.
