A Buzzing Transformation
In the nearly two years since OpenAI released its now globally renowned ChatGPT, the travel industry has been abuzz about the potential of generative artificial intelligence to transform the industry.
It has become a central player in the travel technology narrative – startups have emerged focused on AI travel planning, larger companies have acquired smaller AI firms to enhance their AI strategies, and major corporations have introduced generative AI products.
The Current State of AI Adoption
As the broader world contemplates how AI might continue to progress and reshape our surroundings, experts are questioning if the travel sector stands ready for such a revolution.
PhocusWire consulted industry leaders at The Phocuswright Conference 2024 for insights on the current pace of AI adoption, expectations, and excitement surrounding this technology.
Responses have been edited for brevity and clarity.
Insights from Industry Leaders
Erik Blachford, founder of Pine5 Partners and former CEO of Expedia: ‘Yes, though as the technology evolves, the progress will be nonlinear. We are still in the experimentation stage in terms of real-world applications in travel.’
Melissa Maher, CEO and founder of Pinnacle Enterprises Group: ‘The industry has dipped its toes into generative AI, but hasn’t fully cannonballed into the deep end. There are promising examples, such as AI-driven concierge services, but many companies treat AI like a shiny tool rather than a strategic game-changer.’
Eric Bailey, managing director of Purposeful Travel Solutions: ‘They’re definitely trying to embrace AI. However, I don’t see the impact yet of what it could really do. We are dealing with incomplete information for decision-making.’
Stuart Greif, executive vice president of Forbes Travel Guide: ‘I think there will be a significant capability leap in two to three years. Progress will be gradual initially, then seemingly all at once.’
Marilyn Markham, vice president of AI and automation strategy at American Express Global Business Travel: ‘Travel is very experiential and human-centric. While generative AI has seen growing interest, it doesn’t fit organically into all areas of the travel experience.’
Exciting AI Initiatives
Blachford: ‘I’m an investor in OTTO, a startup for booking unmanaged business travel, which is likely to free up a lot of time for assistants.’
Maher: ‘Expedia’s AI integration for personalized search is exciting. It enhances the booking process and redefines the traveler’s journey. Accor’s generative AI for operational insights could revolutionize service delivery.’
Bailey: ‘I think we are still searching for impactful initiatives. We expected AI to change everything overnight, but that has not happened.’
Greif: ‘The use of Gen AI in video content shows promise.’
Markham: ‘There’s a lot of effort using generative AI as a travel agent, but data accuracy is a significant challenge.’
Is the Industry Moving Fast Enough?
Blachford: ‘AI is evolving rapidly. It is a challenge to keep pace and risky to deploy systems prematurely.’
Maher: ‘The industry is not moving fast enough. Technological advancements should match rising traveler expectations.’
Bailey: ‘Rebuilding from the ground up is crucial. However, the industry moves slowly with many entrenched models.’
Greif: ‘Travel often lacks speed in adaptation due to structural constraints. There is, however, a necessary gestation period for innovation.’
Markham: ‘There’s a healthy caution as the industry moves to retain consumer confidence. Startups are innovating, but full maturity requires time.’
Adapting and Scaling AI
Blachford: ‘The travel sector can experiment across booking, customer service, and coding assistance. Curiosity is key.’
Maher: ‘The industry needs a mindset shift. Companies should aim for bold, innovative applications of AI rather than incremental improvements.’
Bailey: ‘Efficiency can be gained through cost management or revenue optimization.’
Greif: ‘Focus on one or two projects to begin. Familiarizing employees with new tools is essential.’
Markham: ‘The pace of adoption remains relative. There is more hype than reality regarding generative AI in enterprises.’
Conclusion
The ongoing discussions reveal a mix of excitement and caution regarding AI’s future in the travel industry. As the technology continues to evolve, will the industry adapt or find itself left behind?
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