Travel Industry has No Choice but to Embrace Generative AI
Three years ago, the travel industry took a massive blow by Covid, with recovery seeming nearly impossible. It was estimated that nearly 40% of companies would have to shut down operations. But now there is a glimmer of hope thanks to generative AI. Now, companies are looking to automate and deploy digital agents that not only save resources but also help recover from past losses. As per a recent market study, generative AI in travel is expected to be worth  $2.9 billion in the next ten years growing at 18.2%. Brian Chesky, co-founder of Airbnb, during the company’s latest earnings call, said that generative AI can be used as an entry point to customer service. “AI is going to be able to give us better service, cheaper and faster, by augmenting the agents (catering to customer care). I think this is going to be a huge transformation.” In fact, one of the first use cases of ChatGPT was users generating travel itineraries. From giving elaborate travel plans to ticket and hotel recommendations, the chatbot was able to execute every task. With the introduction of ChatGPT plugins, travel booking platforms Expedia and Kayak (a subsidiary of Booking Holdings) were also integrated, which allows users to connect to real-time data and book tickets in real-time. One of the biggest use cases for companies is when it comes to managing customer volumes. Akin to how organisations implement generative AI in enterprises for a number of reasons, including improving productivity and serving customers better, travel companies are no different. By integrating AI for automating queries and customer requests, travel companies are enabling supportive functions through generative AI. Companies are also integrating different languages to cater to specific market segments. For instance, MakeMyTrip has integrated the Hindi language for speech-to-text models. Narasimha Medeme, VP head of data science at MakeMyTrip, told AIM, that the company’s conversational bot uses a combination of generative AI LLM models plus speech-to-text models for Bharat customers in English and Hindi. “Multiple other use cases and bots are being tested in the beta stage for Bharat customers.” Traditional Players? Before chatbots ruled the space, the traditional method of planning a travel itinerary involved a travel agent or Google. With the vast information that can send you down a rabbit hole, Google was the go-to source for travel ideas, places to visit, flight plans, etc. However, the extensive information from multiple sources will not only confuse one, but also expose one to information heavily based on SEO. Thus, leading to inconclusive results. Traditional travel agent companies have also been facing the brunt. With generative AI slowly making its way into all booking and planning portals, where do traditional travel agents stand? Thomas Cook, the oldest travel agency in the world, has been facing its share of losses from the time online booking platforms came in. Owing to a late adoption strategy and insurmountable debts, the parent company had to wind up operations in 2019. Thomas Cook India, a separate entity, is still functioning and posted a 150% YoY growth for Q4FY23. The company announced its AI-powered chatbot, TeeCee in 2019, to enhance customer experience. However, the company has not announced any other form of generative AI integration on their platform ever since. This is a step that may prove detrimental considering how other booking portals are moving fast with AI adoption. The Indispensable AI A number of travel companies are integrating generative AI on their platforms. A subsidiary of Booking Holdings, online travel agency booking.com recently unveiled an AI travel planner powered by ChatGPT. The integration is said to offer an interactive and conversational experience for trip planning, and its beta version is available in the US only. In May, travel platform MakeMyTrip announced a collaboration with Microsoft by introducing voice-assisted booking in Indian languages using Microsoft Azure OpenAI and Azure Cognitive Service. The service aims to help users with personalised travel recommendations, holiday packages, and booking processes. AirIndia, too, recently announced that it’s looking to add ChatGPT as part of modernising its systems. The company has invested around $200 million in its technology initiatives. While ChatGPT plugins and AI integration in travel portals helps a user plan and address their travel needs, the move has injected life back into the travel sector that faced the biggest blow owing to the pandemic. It is evident that travel companies are left with no choice — they can either embrace generative AI and thrive or eventually succumb to the competition.
With ChatGPT and AI integration on travel booking platforms, what is the fate of the travel industry?
With generative AI entering the travel industry, companies can automate and deploy digital agents to save resources and help customers.
["Airbnb", "ChatGPT", "Generative AI", "SEO", "travel"]
["data science", "ChatGPT", "Go", "OpenAI", "AI", "chatbots", "SEO", "R", "Aim", "generative AI", "Airbnb", "Generative AI", "travel", "Azure"]
["AI", "data science", "generative AI", "ChatGPT", "OpenAI", "Aim", "chatbots", "Azure", "R", "Go"]
As a rare blend of engineering, MBA, and journalism degree, Vandana Nair brings a unique combination of technical know-how, business acumen, and storytelling skills to the table. Her insatiable curiosity for all things startups, businesses, and AI technologies ensures that there's always a fresh and insightful perspective to her reporting. She now hosts her tech segment 'Point Break' on AIM Tv.