Travel Distribution Costs Climb as Agentic AI Adoption Grows
Executives from Amadeus and Spotnana said at the Skift Global Forum that agentic AI is adding concrete costs to travel distribution before the industry has settled on who pays. Amadeus's Elena Avila noted the costs are already present but revenue may not arrive quickly enough. Spotnana's Steve Singh suggested suppliers or travelers could eventually bear the costs if the value is demonstrated.
The Skift Global Forum session highlighted a timing problem in travel technology: infrastructure investments for agentic AI are being made now, while the revenue models to justify them remain undefined. Amadeus's Elena Avila cautioned against assuming that new revenue will naturally follow the technology's deployment, suggesting the industry may face a period where costs outpace returns.
Spotnana's Steve Singh indicated that the burden could shift to suppliers or travelers, but only if the technology demonstrates clear value. The discussion also touched on broader unresolved questions about automation scope and whether the industry will adopt shared technical standards, which would affect how efficiently these costs are distributed across the travel ecosystem.
This cost uncertainty could affect travelers through higher booking fees or fares if suppliers pass expenses along, though improved AI efficiency may eventually lower distribution costs. Corporate travel managers and smaller agencies could face pressure if they must absorb new technology expenses without immediate savings. The industry's pricing decisions in the near term may determine whether AI's benefits reach consumers broadly or remain concentrated among larger players who can absorb upfront investments.