Good morning. Trivago is a platform that should arguably be gone by now. Having suffered a near-death experience during the pandemic, this hotel search site would seem ripe for disruption in an age of AI. It’s smaller and narrower than Booking Holdings (check out CEO Glenn Fogel’s recent interview with my colleague Kamal Ahmed) or majority owner Expedia. It performs a search function that Google, Kayak and others seem to do well. And yet the mid-sized Dusseldorf-based site is profitable and grew almost 20% last year to about $633 million in revenue. More recently, it reported second-quarter revenue growth of 21%, reaching 168.4 million euros ($196.4 million).
CEO Johannes Thomas credits AI. When Trivago’s supervisory board met late last year, Thomas told me the debate came down to a choice: “Do you go for efficiency and downsize Trivago to 200 people, or do you go from 600 to an impact of 6,000 by leveraging AI?” They chose to aim for the latter and he now spends more than half of his time on AI transformation, up from roughly a quarter of his time a year ago.
“Small or medium‑sized companies with a tech DNA are in a very sweet spot,” he told me, arguing that there are fewer layers of bureaucracy or union politics to slow down adoption. The organization is so flat that he’s now building more applications and systems himself. He designed what he calls a “role evolution agent” that scans each employee’s work, messages, job description and other material to give them a personalized playbook on what to automate and how their job is likely to look different in a few years. “I can suddenly realize things I had in my mind but could not build because resources were constrained,” he said. “I probably spend 10 hours more working a week. I have three kids, so I need to sacrifice even more but it’s very exciting.”
And what happened when he turned that agent on himself? “It came out: get rid of earnings preparation … and it prepares me for the performance chat because 70% of the work is done,” he said. His advice: “I would tell other CEOs the exact same thing I tell everybody in this company: Invest at least one or two hours into AI and rethinking your work. Just block your calendar and do it.”Contact CEO Daily via Diane Brady at diane.brady@fortune.com
This story was originally featured on Fortune.com
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