The global travel industry is entering a new phase in which localized expertise, strategic destination partnerships, and artificial intelligence (AI) will play a greater role than simply attracting large online audiences, according to Edison Chen, Vice President of Trip.com Group.
Speaking as a judge at the 2026 Skift IDEA Awards, Chen said the future competitiveness of global travel companies will increasingly depend on what he described as “proximity is power”, the ability to build strong local relationships and leverage destination-specific knowledge to meet rapidly changing traveler demand.
According to Chen, the shift marks a significant evolution in the online travel sector, where success will increasingly be determined by how effectively companies connect travelers with localized experiences rather than relying solely on large-scale digital marketing.
Event-Led Travel Reshaping Demand
One of the major factors driving this transformation is the growing popularity of event-led travel. International travelers are increasingly planning their journeys around concerts, sporting events, festivals, exhibitions, and cultural celebrations, creating travel demand that fluctuates quickly depending on the event calendar.
This trend has made traditional mass marketing campaigns less effective, with travel companies now placing greater emphasis on destination-specific strategies supported by local partnerships and real-time market intelligence. Industry experts believe that understanding local travel patterns and responding quickly to changes in visitor demand will become essential for maintaining competitiveness.
Stronger Collaboration with Local Tourism Partners
The changing travel landscape is also increasing the importance of close cooperation between online travel platforms and local tourism stakeholders. Hotels, tourist attractions, transport providers, destination management organizations, and tourism authorities are expected to play a more strategic role in helping travel companies deliver timely, relevant, and personalized services. By building stronger local networks, online travel agencies can respond more effectively to changing traveler preferences while improving the overall customer experience.
Artificial Intelligence Enters a New Phase
Alongside changing travel behavior, the industry is also witnessing a new stage in the adoption of artificial intelligence. Experts describe the next phase as AI agentification, a transition from traditional search-based booking platforms to intelligent AI assistants capable of planning, recommending, booking, and managing complete travel experiences through natural conversations with users.
Unlike conventional booking systems, these next-generation AI tools rely heavily on contextual information rather than static databases. They require continuous access to real-time inventory, destination-specific information, geographic relationships, pricing updates, and operational data to provide accurate recommendations and highly personalized travel itineraries.
Data Becoming a Strategic Asset
The emergence of AI-powered travel planning is shifting the competitive focus of the industry. Rather than concentrating solely on customer acquisition, global online travel agencies are increasingly investing in reliable local data ecosystems that can support intelligent AI services and responsive destination management. Industry analysts suggest that companies capable of integrating high-quality local information with advanced AI technologies will be better positioned to deliver seamless travel experiences and adapt to rapidly changing market conditions.
Future of Travel Driven by Local Knowledge
As technology continues to transform how travelers discover, plan, and book their journeys, industry leaders believe localized expertise will become one of the travel sector’s most valuable strategic assets. Strong destination partnerships, trusted local networks, and access to accurate, real-time information are expected to play a central role in shaping the future of global tourism.
Chen emphasized that in an increasingly dynamic travel environment, the companies that combine technological innovation with deep local knowledge will be best placed to meet evolving traveler expectations and maintain a competitive edge in the global marketplace.
