AI set to revolutionise the travel booking landscape

During a recent discussion at the Skift Megatrends event, Thomas Reiner, a partner at Altimeter Capital, highlighted the significant changes that artificial intelligence (AI) is poised to bring to the travel industry, particularly regarding online travel agencies (OTAs) and metasearch engines. He stated that these platforms might face severe challenges as AI-generated search technology evolves.

Reiner opened his remarks by noting that for OTAs, the best-case scenario might involve merely losing commissions to direct bookings made by customers through airlines and hotels. He elaborated, saying, “I think it’s already happening,” and anticipated a fundamental shift in how travel is discovered through search engines. In this new landscape, he projected that the ability of hotels, airlines, cruise lines, and car rental agencies to facilitate direct bookings will greatly increase, which could disrupt the revenue models for existing intermediaries.

He conveyed particular concern for metasearch companies, such as Trivago, concluding that these platforms might nostalgically “remember the good times” as AI takes hold in travel search. Reiner painted a vivid picture of the future of travel bookings, where AI assistants would become the primary tools for consumers. He emphasised that the current limitation of platforms like Google, which delivers uniform search results, will be transformed by enhanced personalisation in future AI applications. He expressed optimism about individual searches generating results tailored to user preferences.

Reiner further elaborated on a scenario in which an AI assistant could change the way people plan their travel, stating, “Everyone will have a personal assistant in their pocket that can do everything for them.” This assistant would remember individual preferences and handle a range of tasks from booking a hotel to arranging transport via Uber or autonomous vehicles.

Describing how seamless such a process could be, he articulated an example search: “I want a luxury hotel. I want it to have a kids club near the beach, within an hour of an airport that has a one-stop connection from SFO.” Reiner asserted that what currently takes hours of research could reduce to a matter of minutes with the right technology.

As the conversation shifted towards the implications for search engine optimisation (SEO), Reiner predicted that traditional SEO techniques may become obsolete in the face of emerging AI technologies. He suggested that rather than focusing on conventional optimisation methods, suppliers will need to concentrate on producing high-quality content that resonates with consumers. He noted that the changes on the horizon will likely elevate the importance of content quality in matching products to the right customers.

In summary, Reiner’s insights during the Skift Megatrends event provide a glimpse into how AI is expected to revolutionise the travel booking paradigm, potentially reshaping roles within the industry and redefining how consumers interact with travel services.

Source: Noah Wire Services