Online reserving giants are reportedly taking steps to counter the encroachment of AI brokers.
As the Financial Times (FT) reported Tuesday (Sept. 9), this implies forging partnerships with firms equivalent to OpenAI to realize a foothold as synthetic intelligence (AI) gives vacationers a option to organize journeys and lodging.
According to the FT, Booking.com and Expedia are deploying new AI-enabled options utilizing fashions from OpenAI to automate providers and launch instruments equivalent to journey planners. And Airbnb has debuted an AI-powered customer support agent to deal with buyer queries, with plans to roll out extra “agentic” capabilities on its platform subsequent 12 months.
The FT notes that these strikes are taking place as AI brokers, autonomous bots that may carry out actions on a consumer’s behalf, can now make preparations for vacationers primarily based on their preferences, a possible risk to the $1.6 billion journey business and to on-line journey brokers.
“We don’t have to do what OpenAI, Google, Grok or Meta are doing . . .[all of whom] are having to invest incredible amounts of money to build these models,” Glenn Fogel, CEO of Booking Holdings, which owns Priceline and Booking.com, informed the FT.
“Our belief is that as long as we … work closely with them that we will be able to participate in a way that provides a great return for our customers and our partners,” he added.
Meanwhile, Kayak CEO Steve Hafner spoke with PYMNTS earlier this 12 months about his firm’s plans to launch AI brokers to assist clients with all the pieces from looking for journey concepts to finishing checkout.
“One thing Kayak hasn’t done as well as search is booking,” Hafner stated. “We’ve had to hand people off to airline or hotel websites or online travel agencies to complete the booking. With agentic AI, we can actually facilitate that without the consumer ever having to leave the Kayak experience.”
That interview got here within the wake of a PYMNTS Intelligence report, “At Your Service: Generative AI Arrives in Travel and Hospitality.”
Research from that report confirmed that 52% of shoppers anticipate AI to assist with interactions, whereas 44% assume it is going to enhance visitor engagement.
“Despite these advances, experts caution against overusing AI in customer-facing roles. While generative AI can offer efficiency, it can result in robotic and impersonal interactions, which may alienate customers,” PYMNTS wrote. “It is essential for businesses to integrate AI in a way that enhances human interaction rather than replacing it entirely.”