TL;DR:
- The travel industry is being transformed by ChatGPT and generative AI technology, with the potential to provide new value and support for travelers.
- Online travel agencies (OTAs) like Booking Holdings and Expedia have already integrated AI into their operations and are well-equipped to make any AI-suggested itinerary bookable.
- The role of AI as a travel assistant is expected to extend beyond trip planning to address airport-related stress and anxiety.
- Matt Breed, CIO of Seattle-Tacoma International Airport, sees AI as an itinerary analyzer and personal travel assistant that can optimize the passenger journey.
- AI is also playing a growing role in airport operations, helping to optimize scheduling, staffing, baggage handling, and aircraft parking.
- The biggest winners of AI in the travel industry are expected to be OTAs, while traditional travel agencies, tour operators, independent hotels, and restaurants may be the losers.
- ChatGPT has defined its best use cases in travel as enhanced chatbots, virtual assistants, translators of content, and marketing and website copywriting.
- The potential of AI in the travel industry is to shorten waiting times, bring order to seemingly chaotic operations, and reduce uncertainties, all while maintaining the importance of human interaction.
Main AI News:
As a leading language model, ChatGPT has the potential to become a valuable asset in the business sector. Despite its current limitations, the use of generative artificial intelligence is expected to see significant growth in the near future, with customer service being a prime area of focus. The travel industry, already disrupted by the advent of the internet, is poised to be an early adopter of this technology.
Although the application of ChatGPT in the travel sector is still in its experimental phase, with mixed results, online travel agencies are already incorporating AI into their operations. The impact of technology, particularly AI and machine learning, can be seen in the recommendations and decisions made by travel companies, even though travelers may not be aware of it.
This is demonstrated by Booking Holdings, the parent company of Booking.com, which has been utilizing these technologies for over ten years, as stated by CEO Glenn Fogel. This technology is integrated into every aspect of the customer journey on their platform, including personalized trip recommendations and machine translation in over 40 languages.
As AI technology continues to advance, travel executives are exploring the potential of language models like OpenAI’s ChatGPT and Google’s Bard in the travel industry. While these models offer exciting possibilities for itinerary building and question-answering, they are not intended to replace human interaction. The travel industry is focused on bringing people and communities together, and this human connection will always hold a crucial place in the travel experience.
However, AI’s ability to analyze vast databases can provide new value and support for travelers, complementing human interaction. The goal of innovation in travel should be to enhance the human interaction between travelers and suppliers while also streamlining processes at scale. This is why Booking Holdings’ Kayak platform recently integrated ChatGPT, allowing for more conversational interactions with its search engine.
As a virtual travel assistant, ChatGPT can provide personalized recommendations based on natural language queries, such as “Where can I fly to from NYC for under $500 in April.” The AI’s ability to understand and analyze natural language leads to even more tailored recommendations, such as “I’m looking for a hotel in New York City close to Central Park.” These more personalized recommendations can enhance the overall travel experience for users.
The role of AI as a travel assistant is poised to extend beyond trip planning to address airport-related stress and anxiety. According to Glenn Fogel, CEO of Booking Holdings, AI has the potential to remove friction, predict potential problems, and intervene with real-time solutions if a traveler’s plans go awry. The goal is to recreate the ease and personal touch of a traditional travel agent through the use of cutting-edge technology, with AI playing a central role.
Matt Breed, CIO of Seattle-Tacoma International Airport, is already exploring the use of AI and generative AI tools like ChatGPT to improve the customer experience at the airport. Breed sees AI as an itinerary analyzer, pulling in real-time information from multiple sources and optimizing the passenger journey, essentially serving as a personal travel assistant.
The AI might be able to suggest, for example, “Matt, traffic to the airport today is a little heavy. I would suggest leaving at 5:25 a.m., which, given projected TSA pre-check wait times, should leave you with time to grab Starbucks near gate N15. Should I place your order to have it ready when you arrive?“
Artificial Intelligence is increasingly becoming a significant factor in airport operations, where there are ample opportunities for enhancement. Seattle-Tacoma International Airport has adopted the Assaia Apron AI system for making surface-level decisions. Although the system may not directly interact with passengers, its focus is on providing a better customer experience.
With the ability to process data from multiple systems in real-time, AI has the potential to streamline operations such as scheduling, staffing, baggage management, and aircraft parking.AI can assist in optimizing operations, such as scheduling, staffing, baggage handling, and aircraft parking, particularly as it gains the capability to view data from multiple systems in real-time.
According to Breed, “One of the most impressive things that I have seen out of GPT-4 is its ability to provide structure and organization around data that at first glance seems very unstructured and chaotic.”
While the potential of ChatGPT in the travel industry has generated a lot of excitement, travel consultant Max Starkov warns against viewing new technology in revolutionary terms. Instead, he sees these technologies as advanced tools for operators to better serve their customers and increase market share.
Starkov believes that the biggest winners will be online travel agencies (OTAs) like Booking Holdings and Expedia, which have already implemented plug-ins to ChatGPT and are working on integrating it into their chatbots and virtual agents. This will aid in reducing the length of the digital customer journey and swiftly move travelers from the planning stage to the booking phase.
According to Starkov, the OTAs are well equipped to make any AI-suggested itinerary bookable, with access to millions of accommodations, airlines, and local experiences. On the other hand, traditional travel agencies, tour operators, independent hotels, and restaurants are likely to be the losers, as they lack the financial, human, and technological capabilities to take advantage of ChatGPT.
Starkov predicts that innovative airlines will soon incorporate trip planning, language translation, and customer service chatbots powered by generative AI technology. Additionally, he anticipates that more airports will integrate informational and customer service chatbots into their websites and mobile applications. However, it is still uncertain which parts of the travel experience AI will actually make easier.
ChatGPT has defined its best use cases in travel as enhanced chatbots, virtual assistants, translators of content, and marketing and website copywriting. While it may not completely dispel the anxieties and frustrations of travel, it has the potential to make the waiting shorter, the apparent chaos more orderly, and the unknowns fewer. And, if all else fails, it can at least order a cappuccino for you while you wait.
Conlcusion:
The integration of ChatGPT and generative AI technology in the travel industry has the potential to significantly transform the booking and traveling experience for customers. Online travel agencies, such as Booking Holdings and Expedia, are already incorporating AI into their operations, leading to more personalized and efficient experiences for travelers.
Additionally, the use of AI in the travel industry can address airport-related stress and anxiety, helping to optimize operations and provide real-time solutions if plans go awry. The integration of AI technology is expected to continue growing in the near future, with smart airlines and airports also incorporating AI chatbots and virtual assistants.
However, traditional travel agencies and independent hotels may face challenges in adopting this technology due to financial, human, and technological limitations. Overall, the integration of AI in the travel industry can provide new value and support for travelers, enhancing human interaction and streamlining processes at scale.
