Latest news with #GiladBerenstein
Skift
26-06-2025
- Business
- Skift
3 Travel Startup Investors Warn Founders Not to Fall for AI Hype
AI may provide new tools to help solve problems, but that doesn't change what travel tech investors are looking for in startup founders. What do travel investors really think about AI, startups, and the future of travel? In this unscripted Ask Me Anything session, three venture experts answer audience questions – no slides, no pitches, just sharp takes and presumably honest insights. Skift Editor-in-Chief Sarah Kopit moderated the conversation with Cara Whitehill (vice president, Thayer Investment Partners), Gilad Berenstein (founder, Brook Bay Capital), and Max Niederhofer (partner, Heartcore Capital) at the Skift Data+AI Summit earlier this month. Below are four takeaways from the conversation. Listen to This Podcast Apple Podcasts | Spotify | YouTube | RSS 1. Avoid AI Hype. Focus on Solving Real Problems Investors are turned off by pitches that focus too much on AI but lack technical depth or market understanding. Founders need to demonstrate clear insight about the problem, and AI alone is rarely going to solve it. 'It's a tool; it's not a solution,' Whitehill said. 'The things that I look for are founder-market fit,' Whitehill said. 'I want to know that this person is obsessed with the problem — but not necessarily the solution. Because you might have an idea of a particular way to approach this market problem, but once you get into it, you find it's not quite right. They need to be willing to shift gears a little bit to find the right solution.' 2. There Is No 'AI War' Rather than a 'winner-takes-all' AI war, the panel expects multiple players to emerge across niches in travel. Besides large travel players, Berenstein thinks AI creates an opportunity for specialized travel sellers to establish 'clubs' with loyal members. Berenstein: 'I'm really bullish on travel clubs that really understand a specific audience and can put together complete experiences that are passion-based. Maybe the first discovery will go through Google or whatever. But people will become members of these clubs. And then you will have a direct relationship with them.' 3. Potential for Fundamental Change AI has the potential to monumentally change the way the travel industry operates. In the meantime, companies should focus on collecting thorough, clean data. Niederhofer: 'I think there's a chance to change the way this industry works at the infrastructure level. I really would love to see a way where we make the whole industry better, and its underpinnings. There might be a moment where in 10 years we might look back on right now and there's a startup in this room … that actually is rethinking some of the assumptions that we're making about the incumbents, and I include Google in that.' 4. Today's Household Names May Become Obsolete The biggest winners in prior industry-transforming tech revolutions often came onto the scene later in the process, building upon knowledge from the first waves of new companies. Startups based on the future of agentic AI could disintermediate search engines like Google or online travel agencies — if they offer real value to travelers and suppliers. That's assuming that online travel agencies don't reimagine themselves with the times, which they aim to do. Berenstein: 'The key value of the OTA is that you don't have to go to 37 websites to look at all the hotel websites. But if your AI assistant is willing to go to 37 websites for you, then all of a sudden the value of the OTA goes away. The commission can be used to reduce my price, to give me a benefit, to increase the margin for the hotel.'
Skift
16-05-2025
- Business
- Skift
Robots, AI Employees and Dynamic Travel: What Gilad Berenstein Is Bringing to Skift Data + AI Summit
As the travel industry stands at the edge of an AI-driven transformation, Gilad Berenstein, Founder of Brook Bay Capital, emerges as one of the most future-forward voices in the space. A startup operator turned investor with deep roots in travel innovation, Gilad has built a career by seeing around corners, and at this year's Skift Data + AI Summit, he's set to share what's coming next. Brook Bay Capital invests in the future of travel, technology, and data, with a sharp focus on where automation and personalization converge. Gilad's experience gives him a unique vantage point on how data and AI are reshaping not only how we travel but what we even consider a travel product. Ahead of the summit, we caught up with Gilad Berenstein for a fast-paced Q&A to unpack the most disruptive trends he's tracking. What emerging trends in AI or data are you watching most closely right now? 'Oh, so many,' Gilad said, 'but a few key ones include robotics, AI employees, travel clubs, and the human connection.' 'Robots are coming to a hotel near you and soon! The price of manufacturing is dropping, the ease of managing them is growing, and the number of founders focused on this space has exploded.' According to Gilad, while China has already embraced this technology, 'I think the next 12 months we will see this deployment come to the US.' Next, he drew a sharp distinction in how we think about AI workers: 'Not Aigents that need a new set of rails, but AI Employees who are ready for primetime right now,' he emphasized. These are not simple bots, but operationally capable digital team members ready to plug into real workflows. On the topic of personalization and brand affinity, he highlighted the rise of AI-first travel agencies and clubs, calling them 'a massive proliferation' and 'very exciting for the industry and for travelers.' And amid the tech boom, Gilad insists the human connection is more essential than ever. 'In a world of ubiquitous AI and technology, a focus on the human connection between traveler and brand is perhaps the best differentiator.' If you had to place a big bet on one AI breakthrough that could reshape travel, what would it be? 'Dynamic Products,' Gilad answered without hesitation. He explained: 'Over the past 30 years, we have seen enormous innovation in the way we market and sell travel products… but we have seen nearly zero innovation in the things we sell.' From flights and beds to dinner reservations, Gilad pointed out that travel inventory has remained fundamentally unchanged. 'By combining AI, new hard product offerings, and drop shipment providers, we will enter an era of Dynamic Products where each product is dynamically created for a given customer,' he said. The outcome? 'A true win-win-win: better, more personal trips, increased margin for travel sellers, and a more sustainable industry for us all.' Where do you see the biggest opportunities—or risks—for AI in your business? Gilad pointed to an often overlooked part of the hospitality ecosystem: the back of house. 'A few months ago, I wrote a short essay titled Back of House Ozempic,' he shared. 'This is a huge opportunity in hospitality and one most founders are ignoring—and probably not qualified for.' He emphasized how the majority of startups are focused on guest-facing experiences like trip planning and marketing. 'When I speak with hotel operators, they tell me that for every 100 startups that reach out about marketing, trip planning, recommendations, etc., they maybe get one startup focused on the back of the house.' That's where he sees the real opportunity: 'Housekeeping, laundry, the kitchen, the back office are all ignored; partially because most tech founders have not worked in many laundry rooms.' With labor shortages and rising costs affecting the industry, Gilad concluded, 'Combining the impacts of labor shortages, wage inflation, and AI is a win-win opportunity!' Join Gilad Berenstein at Skift Data + AI Summit While the buzz often centers on guest-facing tech, Gilad is urging founders and operators alike to look deeper into the guts of the industry, into overlooked workflows, and into the spaces where AI could quietly revolutionize everything. As the Skift Data + AI Summit approaches, one thing is clear: travel won't evolve by accident. It will be shaped by those bold enough to question the fundamentals and build what comes next. Continue the conversation with Gilad Berenstein and other leaders at Skift Data + AI Summit and discover what the future of travel looks like before it arrives. Get Your Tickets 1 Person Solo Ticket $895 Buy Now 2-6 PeOPLE Group Tickets From $815 each Buy Now Who Is Already Joining The Skift Data + AI Summit This June Skift Data + AI Summit in New York City is fast approaching - take a look at who is planning to attend and add your company's name to the list. You won't want to miss this exciting global travel industry event. Read More
