The chief executives of the U.S.’s leading travel companies, Booking Holdings and Expedia Group, are optimistic about the prospects of generative AI. However, they emphasize that this emerging technology requires further fine-tuning.
Key takeaways:
- Generative AI in Travel Agencies: Both Expedia and Booking Holdings have begun using generative AI technology in their services. Generative AI, which creates content like text or images, is backed by platforms like OpenAI’s ChatGPT, Google’s Bard, and Microsoft’s Bing.
- Application of Generative AI: Expedia introduced a beta version of a trip-planning tool powered by ChatGPT, offering travel recommendations. Booking.com uses AI for travel suggestions, while Priceline’s Penny, a chatbot, helps answer questions during the checkout process. Other Booking brands, like OpenTable, Kayak, and Agoda, are also exploring generative AI for various purposes.
- Cautious Optimism from CEOs: Both Glenn Fogel of Booking and Peter Kern of Expedia expressed cautious enthusiasm about generative AI. They recognize its potential but also note that the technology needs further development and understanding of how customers wish to engage with it.
- Integration and Future of AI: Kern emphasized the need for better integration between large language models and company-specific data. While some customers appreciate interacting with chatbots, its current impact on conversion is minimal. However, the potential for growth and more meaningful implementation exists.
- AI’s Role in Booking Holdings’ Vision: Fogel envisions a “connected trip” where customers can plan and modify their entire journey in one place, with AI playing a central role. He sees generative AI as particularly useful for travelers seeking on-the-spot advice. Nevertheless, the company remains in an experimental phase, gauging where best to invest resources in the technology.
