In the highly competitive AI travel industry, even the slightest advantage can make a significant difference. Currently, every player in this space is striving to benefit from the potential of new AI/LLM technologies. However, major platforms such as ChatGPT are limited by outdated or non-real-time data. This poses a significant challenge, especially in an industry where plans and itineraries are prone to change suddenly.
Investors in AI travel and advisors are coordinating deals for start-ups, and they are eager to see companies provide value for users in new and tangible ways. For instance, Kayak and Expedia have launched ChatGPT plugins, while Matador Network, a travel publisher, has released GuideGeek, providing real-time flight data. Roam Around is already renowned for its strong visual elements in its interface.
Nevertheless, travel information is complex, and erroneous data or AI hallucinations can occur. For example, Roam Around may show a photo of a particular site, but recommend another, potentially linking to a third. On the other hand, in one of their requests, GuideGeek produced the name of a pub that doesn’t exist.
As the industry is still in its early stages, investors don’t expect perfection from the products. Instead, they focus on how companies are shaping and augmenting this technology for travelers and the market segments within the travel industry in which they are positioned to capture. Although most AI products are built on ChatGPT, they must have proprietary data that can enhance the AI to produce optimal outputs.
Online travel agencies (OTAs) such as Expedia and Booking.com have an edge due to their vast amount of customer data, which they can use to train their AI. While small and agile teams can adopt this technology and scale rapidly, OTAs may struggle to update their existing business or continue to interrupt their business. Consumers can use AI tools to search for all airlines instantly, removing the need for OTAs.
OTAs focus on recommending what the masses want, but the essence of AI is customization. The idea is to provide tailored-fit services that cater to individual needs. For instance, a hotel may have an average ranking of 8, but it may not appeal to a specific person who wants to be close to a less-recognized local surf spot that the AI can identify.
To drive utilization, start-up players must be more creative with product design. Firms like Getaiway and Roam Around focus on itineraries. The latter simplifies user input to a single word, thereby delivering an itinerary and refining from there. Matador has included influencer videos in its messaging interface, providing a rich experience for the users.
In conclusion, the AI industry is still evolving. The market is vast, and there’s enough room for everyone to thrive. While ChatGPT is a popular platform for AI travel products, proprietary data is vital for companies to remain competitive. Investors are keen to see upcoming AI-travel products that provide value in new and concrete ways. Hence, creativity, innovation, and customization should be at the forefront of product design in this industry.
