It is been twenty years since Steve Hafner and Paul English co-founded Kayak, and twenty years later it is onerous to mention which is extra outstanding: How a lot shuttle has modified since
2004 – or that Hafner remains to be championing innovation as the corporate’s one and solely CEO.
In a far-ranging dialog from the cabin of his boat in Miami Seashore, Hafner spoke of ways an itinerant early life formed his worldview; his pleasure for the possibility of synthetic intelligence and bringing the similar insights and innovation to trade
shuttle as Kayak did for customers; the keys to maintaining a startup tradition even at an organization that will be sufficiently old to vote; and why now not even a shuttle govt as proficient as his buddy and previous spouse has succeeded in making a “Kayak killer.”
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If there may be one takeaway from the 18-minute dialog, it is this: Hafner is not completed. Requested what he hopes the following twenty years brings, for himself and for Kayak,
he mentioned, “I am hopeful that they convey as a lot innovation as the primary 20, if now not extra so.”
Watch the entire dialog under or scroll right down to learn an edited model of the change with time stamps or concentrate to the audio-only model in
PhocusWire’s In Phocus podcast.
CEO Highlight – Steve Hafner of Kayak
We’re talking as Kayak marks twenty years of commercial. Desirous about how a lot shuttle has modified over the ones twenty years makes it appear even longer — and Kayak is chargeable for a large number of that adjust. As you prefer to mention, innovation is in Kayak’s DNA. So inform
us, with all that’s other about shuttle these days, what stands proud essentially the most to you, each for excellent and for dangerous?
(0:58) I will really feel the ones twenty years. Two decades is a very long time, however yeah, Kayak used to be based to be cutting edge, to be the upstart within the class. And it is been a in reality a laugh experience, and the innovation is not over but.
Now we have noticed the primary migration from offline bookings to on-line internet sites after which from on-line internet sites to cellular apps … and now now we have were given this new era referred to as AI. I believe we are one of the vital first websites to leap on that, and I believe it will be
a surprisingly transformative era for the class.
I believe there’s much more cool stuff coming relating to chatting with clever brokers to do the entirety you need to do and, with a bit of luck, with the ability to get [through] the airport with facial reputation, etcetera, and now not having to scrounge for paper
or boarding passes, despite the fact that it’s in your mobile phone. There’s much more stuff to return.
Two decades is a very long time, however … it is been a in reality a laugh experience, and the innovation is not over but.
Steve Hafner – Kayak
I don’t assume it’s a stretch to mention you had been fated to be in shuttle. I imply, you had been born in Peru and lived in additional nations as a kid than maximum American citizens see in a life-time. I’ve heard you speak about how the arena can be a greater position if extra other folks
may just are living in numerous nations. Are you able to elaborate on that?
(2:34) On the time I used to be rising up, I didn’t respect that shifting round so much used to be in truth going to form my occupation and my worldview, however it did.
And now I believe much more other people would take pleasure in seeing the arena as a result of there may be a large number of other ways to … downside resolve on the earth, and no nation and no a part of any nation’s were given a perfect take care of or monopoly on excellent concepts. So whilst you transfer
round so much it makes you a greater individual, and it makes you a greater global citizen. And I believe it makes you extra empathetic and extra open to different ways of doing this.
So finishing up in shuttle, for me, used to be nice as a result of now not solely did I love to make use of the product so much, so I had answers for one of the vital friction issues I noticed, but in addition it is helping me be ok with serving to other folks get round to different puts and enlarge the worldviews.
We had been talking of innovation being in Kayak’s DNA. I do know you’re taking delight in Kayak temporarily adapting to new applied sciences. What’s the supply for that ethos?
(3:49) I believe everybody at Kayak — now we have were given about 970 other folks right here on the corporate now — basically, we are … all very curious other folks. We are all upset with the established order, and we are all keen to try new applied sciences and new traits
and say, ‘How are we able to configure them to make Kayak services and products higher?’ Numerous other folks say that is a startup tradition. I am not so positive as a result of we are not a startup anymore. I believe it is some firms have that esprit de corps and the ones varieties of insights
and curious other folks, and others do not. And now we have been blessed to have them.
With regard to a few of the ones inventions, in March Kayak unveiled an symbol reputation device that may be offering value comparisons from a screenshot
of a flight itinerary from any web site. It’s a groovy device. I’m questioning: How are customers responding?
(5:02) They are the use of it. I imply, it is early days, proper? Nevertheless it was once that to make use of a shuttle web site, you would have to visit the shuttle web site, have interaction with the hunt shape, put up a question after which get the consequences again. Now with AI you’ll in truth use your
telephone … and if you’ll simply take a snapshot of a shuttle web site effects [page] and even write down an itinerary on a work of paper and take an image of that, ship it to Kayak and we will come up with effects. And now not solely that, however you’ll arrange fare indicators
proper from the reaction we get.
Increasingly, what mobile phones are enabling and what AI is enabling is other folks with the ability to do stuff asynchronously, which means you do not have to … move to a shuttle company and notice an individual to make a reserving. Then we moved it offline. Then you definately needed to move
to a website online. Now you’ll in truth use images. It’s superior. I believe your next step is the use of voice. … With AI, I believe that comments loop goes to make it such a lot higher, so you’ll in truth simply communicate and get a end result set again.
Kayak for Trade is some other fresh innovation. You talked with us about that some on the Phocuswright Convention in November whilst you shared that Tripadvisor used to be amongst your new shoppers. What’s the most recent on Kayak for Trade?
(6:46) Glance, now we have been on the shopper facet at Kayak for twenty years. Now we have been on the trade facet now for solely 3 years. And the similar insights and innovation we delivered to the patron facet, we are bringing to the trade facet, and we are doing that
in partnership with two different nice firms. One is Blockskye, who’s a era seller, and the opposite is PwC …
And what now we have designed there’s a product that is going direct to the airways and to sure OTAs for provide, for fare enhancements, does not require bank cards or bank card charges, does not require expense studies for the customers of that and is agnostic
relating to who touches the price ticket and does the buyer carrier. … So it is been a a laugh experience thus far. We are solely 3 years in, so we’ve were given some distance to move.
Since you’re so large on innovation, I’m curious: How would you represent Kayak’s use of generative AI in your interior operations these days as opposed to a yr in the past? And what’s your prediction for the long run relating to generative AI in shuttle?
(8:44) I believe it will be a sport changer relating to [eliminating] the mundane paintings that such a lot of folks do. Our advertising staff, as an example, is the use of GenAI to put in writing press releases, to put in writing reproduction, to generate pictures and movies. Our search engine optimization staff is doing
the similar. Once we’re doing content material snippets for accommodations, we will use AI to put in writing related summaries for that. …
I believe all that paintings goes to make the standard of the output from the oldsters that we’ve got at Kayak a lot, significantly better. I don’t assume it’s going to interchange jobs, no less than at Kayak, as a result of we don’t have a large customer support staff. In case you are on [a]
customer support staff, you higher get excellent at the use of AI as a result of you need to be extra environment friendly, so that you don’t be replaced.
The [metasearch] class is wholesome. One participant, Google, attracting the lion’s proportion of expansion. … However that doesn’t imply Kayak isn’t wholesome. … Now we have at all times sought after to be the most efficient, and we nonetheless are the most efficient.
Steve Hafner – Kayak
Between Google and loyalty systems and social media, it’s been difficult for metasearch websites to carry directly to their former proportion of promoting income. What do you spot as the long run for metasearch?
(10:39) Yeah, it’s why I am getting this query so much, like metasearch has peaked or one thing like that. It hasn’t in any respect. Shoppers have this inherent need to move store and shuttle. Why? As a result of costs are other, in line with the place you move, and choices
other. So you are now not going to believe American Airways to turn you the bottom Delta fare. you are now not going to believe Reserving.com to turn you the entire non-hotel lodging right through there. You wish to have to move store, and metasearch websites
assist you to to try this very simply.
The class could be very wholesome. One participant, Google, attracting the lion’s proportion of expansion, and that’s as a result of they’ve a in reality excellent product. They usually’re additionally upper up the meals chain. … However that doesn’t imply Kayak isn’t wholesome. We in truth have by no means
supposed to be the most important [metasearch] web site. Now we have at all times sought after to be the most efficient, and we nonetheless are the most efficient. … We love to mention you snack on Google for shuttle costs, and also you ebook by the use of Kayak since you get well effects. And I believe that is true.
When you had been launching a startup these days, what wouldn’t it be for? What’s maximum “ripe for disruption” in shuttle?
(12:38) Oh, gosh! There’s such a lot of puts of friction nonetheless within the shuttle ecosystem. … I nonetheless assume there’s room for brand new airways, for brand new resort chains. To make use of new era, new method of purchaser acquisition. I’d get started there.
I believe the 2 maximum progressive firms within the ultimate 15 years had been Airbnb and Uber within the shuttle house. … It simply [takes] an ideal alchemy to achieve success. You need to have a perfect concept. You need to have a perfect staff. You need to be rather well
financed, and you’ve got to be fortunate. When you do not have all 4 of the ones issues, it will be tough.
I nonetheless assume [at] Kayak now we have all 4 of the ones issues. So I am going to stay with Kayak as opposed to beginning up some other corporate and going after one thing else. However hats off to these marketers who’re courageous sufficient to move achieve this.
I discussed The Phocuswright Convention. That’s after we first heard about the “Kayak killer.” When your Kayak co-founder Paul English joked on degree
whilst speaking up his newest mission, Deets, an app that gives suggestions in line with opinions from a person’s pals. So I’ve were given to invite, what’s your assessment of the Deets beta? , I’m
going to desire a headline for this tale. …
(14:27) I really like Paul English, and he is were given a knack for producing headlines. I am hopeful that his Deets undertaking is a good fortune. I do not believe it is any danger of being a Kayak killer. If Google could not kill us, Paul, English’s Deets is not going
to both.
Kayak founders Steve Hafner and Paul English at The Phocuswright Convention in November.
We began the dialog speaking about your twenty years at Kayak. It kind of feels suitable to finish on that be aware. I gained’t ask when you have any regrets – all of us do – but when you’ll want to trade one thing, what wouldn’t it be?
(15:10) Gosh. We had such a lot of alternatives alongside the right way to enlarge extra aggressively than we did. … I want we had gambled slightly bit extra. I additionally want that Google hadn’t outbid us for ITA Device as a result of we had been so shut to shopping for them. However we misplaced
that one. It could had been a special global if now we have been in a position to drag that caper off.
No Google Flights, proper?
(15:51) Oh, there would had been ‘Google Flights: Powered by way of Kayak’!
Now let’s turn that query round: What are you maximum happy with over that point?
(16:07) I am maximum happy with development a a success corporate and having a large number of a laugh alongside the way in which and dealing with proficient other folks. Now not everyone will get to enjoy that good fortune. Once more, it comes down to these 4 elements: a perfect concept, nice staff, neatly financed
after which success. And the ultimate one is in truth the toughest one to protected since you’ve were given no keep watch over over it. So we’ve been very lucky to construct a perfect corporate. … Numerous our workers have got rich within the procedure, and that’s very pleasant
too.
After all, what’s subsequent – for you and for Kayak? What are the following twenty years going to convey?
(16:51) I am hopeful that they convey as a lot innovation as the primary 20, if now not extra so. I’m hoping the corporate remains curious and upset and cutting edge. I’m hoping our staff remains small and proficient as neatly. I’m hoping the [profit and loss statement] is excellent,
and I’m hoping we get fortunate. However most significantly, I simply need everybody to benefit from the experience, since the first twenty years had been simply wonderful.”
It is been twenty years since Steve Hafner and Paul English co-founded Kayak, and twenty years later it is onerous to mention which is extra outstanding: How a lot shuttle has modified since
2004 – or that Hafner remains to be championing innovation as the corporate’s one and solely CEO.
In a far-ranging dialog from the cabin of his boat in Miami Seashore, Hafner spoke of ways an itinerant early life formed his worldview; his pleasure for the possibility of synthetic intelligence and bringing the similar insights and innovation to trade
shuttle as Kayak did for customers; the keys to maintaining a startup tradition even at an organization that will be sufficiently old to vote; and why now not even a shuttle govt as proficient as his buddy and previous spouse has succeeded in making a “Kayak killer.”
Subscribe to our publication under
If there may be one takeaway from the 18-minute dialog, it is this: Hafner is not completed. Requested what he hopes the following twenty years brings, for himself and for Kayak,
he mentioned, “I am hopeful that they convey as a lot innovation as the primary 20, if now not extra so.”
Watch the entire dialog under or scroll right down to learn an edited model of the change with time stamps or concentrate to the audio-only model in
PhocusWire’s In Phocus podcast.
CEO Highlight – Steve Hafner of Kayak
We’re talking as Kayak marks twenty years of commercial. Desirous about how a lot shuttle has modified over the ones twenty years makes it appear even longer — and Kayak is chargeable for a large number of that adjust. As you prefer to mention, innovation is in Kayak’s DNA. So inform
us, with all that’s other about shuttle these days, what stands proud essentially the most to you, each for excellent and for dangerous?
(0:58) I will really feel the ones twenty years. Two decades is a very long time, however yeah, Kayak used to be based to be cutting edge, to be the upstart within the class. And it is been a in reality a laugh experience, and the innovation is not over but.
Now we have noticed the primary migration from offline bookings to on-line internet sites after which from on-line internet sites to cellular apps … and now now we have were given this new era referred to as AI. I believe we are one of the vital first websites to leap on that, and I believe it will be
a surprisingly transformative era for the class.
I believe there’s much more cool stuff coming relating to chatting with clever brokers to do the entirety you need to do and, with a bit of luck, with the ability to get [through] the airport with facial reputation, etcetera, and now not having to scrounge for paper
or boarding passes, despite the fact that it’s in your mobile phone. There’s much more stuff to return.
Two decades is a very long time, however … it is been a in reality a laugh experience, and the innovation is not over but.
Steve Hafner – Kayak
I don’t assume it’s a stretch to mention you had been fated to be in shuttle. I imply, you had been born in Peru and lived in additional nations as a kid than maximum American citizens see in a life-time. I’ve heard you speak about how the arena can be a greater position if extra other folks
may just are living in numerous nations. Are you able to elaborate on that?
(2:34) On the time I used to be rising up, I didn’t respect that shifting round so much used to be in truth going to form my occupation and my worldview, however it did.
And now I believe much more other people would take pleasure in seeing the arena as a result of there may be a large number of other ways to … downside resolve on the earth, and no nation and no a part of any nation’s were given a perfect take care of or monopoly on excellent concepts. So whilst you transfer
round so much it makes you a greater individual, and it makes you a greater global citizen. And I believe it makes you extra empathetic and extra open to different ways of doing this.
So finishing up in shuttle, for me, used to be nice as a result of now not solely did I love to make use of the product so much, so I had answers for one of the vital friction issues I noticed, but in addition it is helping me be ok with serving to other folks get round to different puts and enlarge the worldviews.
We had been talking of innovation being in Kayak’s DNA. I do know you’re taking delight in Kayak temporarily adapting to new applied sciences. What’s the supply for that ethos?
(3:49) I believe everybody at Kayak — now we have were given about 970 other folks right here on the corporate now — basically, we are … all very curious other folks. We are all upset with the established order, and we are all keen to try new applied sciences and new traits
and say, ‘How are we able to configure them to make Kayak services and products higher?’ Numerous other folks say that is a startup tradition. I am not so positive as a result of we are not a startup anymore. I believe it is some firms have that esprit de corps and the ones varieties of insights
and curious other folks, and others do not. And now we have been blessed to have them.
With regard to a few of the ones inventions, in March Kayak unveiled an symbol reputation device that may be offering value comparisons from a screenshot
of a flight itinerary from any web site. It’s a groovy device. I’m questioning: How are customers responding?
(5:02) They are the use of it. I imply, it is early days, proper? Nevertheless it was once that to make use of a shuttle web site, you would have to visit the shuttle web site, have interaction with the hunt shape, put up a question after which get the consequences again. Now with AI you’ll in truth use your
telephone … and if you’ll simply take a snapshot of a shuttle web site effects [page] and even write down an itinerary on a work of paper and take an image of that, ship it to Kayak and we will come up with effects. And now not solely that, however you’ll arrange fare indicators
proper from the reaction we get.
Increasingly, what mobile phones are enabling and what AI is enabling is other folks with the ability to do stuff asynchronously, which means you do not have to … move to a shuttle company and notice an individual to make a reserving. Then we moved it offline. Then you definately needed to move
to a website online. Now you’ll in truth use images. It’s superior. I believe your next step is the use of voice. … With AI, I believe that comments loop goes to make it such a lot higher, so you’ll in truth simply communicate and get a end result set again.
Kayak for Trade is some other fresh innovation. You talked with us about that some on the Phocuswright Convention in November whilst you shared that Tripadvisor used to be amongst your new shoppers. What’s the most recent on Kayak for Trade?
(6:46) Glance, now we have been on the shopper facet at Kayak for twenty years. Now we have been on the trade facet now for solely 3 years. And the similar insights and innovation we delivered to the patron facet, we are bringing to the trade facet, and we are doing that
in partnership with two different nice firms. One is Blockskye, who’s a era seller, and the opposite is PwC …
And what now we have designed there’s a product that is going direct to the airways and to sure OTAs for provide, for fare enhancements, does not require bank cards or bank card charges, does not require expense studies for the customers of that and is agnostic
relating to who touches the price ticket and does the buyer carrier. … So it is been a a laugh experience thus far. We are solely 3 years in, so we’ve were given some distance to move.
Since you’re so large on innovation, I’m curious: How would you represent Kayak’s use of generative AI in your interior operations these days as opposed to a yr in the past? And what’s your prediction for the long run relating to generative AI in shuttle?
(8:44) I believe it will be a sport changer relating to [eliminating] the mundane paintings that such a lot of folks do. Our advertising staff, as an example, is the use of GenAI to put in writing press releases, to put in writing reproduction, to generate pictures and movies. Our search engine optimization staff is doing
the similar. Once we’re doing content material snippets for accommodations, we will use AI to put in writing related summaries for that. …
I believe all that paintings goes to make the standard of the output from the oldsters that we’ve got at Kayak a lot, significantly better. I don’t assume it’s going to interchange jobs, no less than at Kayak, as a result of we don’t have a large customer support staff. In case you are on [a]
customer support staff, you higher get excellent at the use of AI as a result of you need to be extra environment friendly, so that you don’t be replaced.
The [metasearch] class is wholesome. One participant, Google, attracting the lion’s proportion of expansion. … However that doesn’t imply Kayak isn’t wholesome. … Now we have at all times sought after to be the most efficient, and we nonetheless are the most efficient.
Steve Hafner – Kayak
Between Google and loyalty systems and social media, it’s been difficult for metasearch websites to carry directly to their former proportion of promoting income. What do you spot as the long run for metasearch?
(10:39) Yeah, it’s why I am getting this query so much, like metasearch has peaked or one thing like that. It hasn’t in any respect. Shoppers have this inherent need to move store and shuttle. Why? As a result of costs are other, in line with the place you move, and choices
other. So you are now not going to believe American Airways to turn you the bottom Delta fare. you are now not going to believe Reserving.com to turn you the entire non-hotel lodging right through there. You wish to have to move store, and metasearch websites
assist you to to try this very simply.
The class could be very wholesome. One participant, Google, attracting the lion’s proportion of expansion, and that’s as a result of they’ve a in reality excellent product. They usually’re additionally upper up the meals chain. … However that doesn’t imply Kayak isn’t wholesome. We in truth have by no means
supposed to be the most important [metasearch] web site. Now we have at all times sought after to be the most efficient, and we nonetheless are the most efficient. … We love to mention you snack on Google for shuttle costs, and also you ebook by the use of Kayak since you get well effects. And I believe that is true.
When you had been launching a startup these days, what wouldn’t it be for? What’s maximum “ripe for disruption” in shuttle?
(12:38) Oh, gosh! There’s such a lot of puts of friction nonetheless within the shuttle ecosystem. … I nonetheless assume there’s room for brand new airways, for brand new resort chains. To make use of new era, new method of purchaser acquisition. I’d get started there.
I believe the 2 maximum progressive firms within the ultimate 15 years had been Airbnb and Uber within the shuttle house. … It simply [takes] an ideal alchemy to achieve success. You need to have a perfect concept. You need to have a perfect staff. You need to be rather well
financed, and you’ve got to be fortunate. When you do not have all 4 of the ones issues, it will be tough.
I nonetheless assume [at] Kayak now we have all 4 of the ones issues. So I am going to stay with Kayak as opposed to beginning up some other corporate and going after one thing else. However hats off to these marketers who’re courageous sufficient to move achieve this.
I discussed The Phocuswright Convention. That’s after we first heard about the “Kayak killer.” When your Kayak co-founder Paul English joked on degree
whilst speaking up his newest mission, Deets, an app that gives suggestions in line with opinions from a person’s pals. So I’ve were given to invite, what’s your assessment of the Deets beta? , I’m
going to desire a headline for this tale. …
(14:27) I really like Paul English, and he is were given a knack for producing headlines. I am hopeful that his Deets undertaking is a good fortune. I do not believe it is any danger of being a Kayak killer. If Google could not kill us, Paul, English’s Deets is not going
to both.
Kayak founders Steve Hafner and Paul English at The Phocuswright Convention in November.
We began the dialog speaking about your twenty years at Kayak. It kind of feels suitable to finish on that be aware. I gained’t ask when you have any regrets – all of us do – but when you’ll want to trade one thing, what wouldn’t it be?
(15:10) Gosh. We had such a lot of alternatives alongside the right way to enlarge extra aggressively than we did. … I want we had gambled slightly bit extra. I additionally want that Google hadn’t outbid us for ITA Device as a result of we had been so shut to shopping for them. However we misplaced
that one. It could had been a special global if now we have been in a position to drag that caper off.
No Google Flights, proper?
(15:51) Oh, there would had been ‘Google Flights: Powered by way of Kayak’!
Now let’s turn that query round: What are you maximum happy with over that point?
(16:07) I am maximum happy with development a a success corporate and having a large number of a laugh alongside the way in which and dealing with proficient other folks. Now not everyone will get to enjoy that good fortune. Once more, it comes down to these 4 elements: a perfect concept, nice staff, neatly financed
after which success. And the ultimate one is in truth the toughest one to protected since you’ve were given no keep watch over over it. So we’ve been very lucky to construct a perfect corporate. … Numerous our workers have got rich within the procedure, and that’s very pleasant
too.
After all, what’s subsequent – for you and for Kayak? What are the following twenty years going to convey?
(16:51) I am hopeful that they convey as a lot innovation as the primary 20, if now not extra so. I’m hoping the corporate remains curious and upset and cutting edge. I’m hoping our staff remains small and proficient as neatly. I’m hoping the [profit and loss statement] is excellent,
and I’m hoping we get fortunate. However most significantly, I simply need everybody to benefit from the experience, since the first twenty years had been simply wonderful.”
