Travel industry veterans such as Erik Blachford and current
executives such as Amex GBT’s Marilyn Markham offer their take on the state of
generative AI in travel.
NATIONAL REPORT – In the nearly two years since OpenAI
released its now globally renowned ChatGPT, the travel industry has been abuzz
about the potential of generative artificial intelligence to transform the
industry.
It has become a main character in the travel technology
plotline – startups have popped up dedicated solely to AI travel planning,
larger companies have purchased smaller AI-focused entities to improve their
own AI strategy and industry giants have come out with generative AI products.
But as the larger world considers how AI might continue to
evolve and alter the world around us, is the travel industry where it should be
in terms of adoption?
PhocusWire touched base with industry leaders at The
Phocuswright Conference 2024 to get their take on where things stand in terms
of the pace of AI adoption, expectations and what they are excited about when
it comes to the technology. The piece builds on our recent check-in with senior
industry leaders oon general AI hype and how companies are making it part
of their wider strategies.
Responses have been edited for brevity and clarity.
PhocusWire: Has the travel industry embraced generative
AI to the level you would expect?
Erik Blachford, founder of Pine5 Partners and former CEO
of Expedia: Yes, though as the technology evolves (pun intended), the
progress will be nonlinear, we are still in the experimentation stage in terms
of real-world applications in travel.
Melissa Maher, CEO and founder of Pinnacle Enterprises
Group and former Expedia Group CMO: The industry has dipped its toes
into generative AI, but it hasn’t fully cannonballed into the deep end — yet.
While there are promising examples, like AI-driven concierge services and
personalized trip planning, too many companies are still treating AI like a
shiny new tool rather than a strategic game-changer.
It has been building behind the scenes along the way. And I think that’s the thing... [It will happen] gradually at first and then all of a sudden.
Stuart Greif
Eric Bailey, managing director of Purposeful Travel
Solutions and former director of employee travel at Microsoft: They’re
definitely trying to embrace [AI]. I don’t see the impact yet of what it
probably could do. And I think part of it is that you’re dealing with
incomplete information to make decisions.
Stuart Greif, executive vice president, chief strategy,
innovation and operating officer of Forbes Travel Guide: I think I
have more realistic expectations informed by direct experience. And I think all
of a sudden, in two to three years, there's going to be what appears to be a
giant step in seeing capabilities. It has been building behind the scenes along
the way. And I think that’s the thing... [It will happen] gradually at first
and then all of a sudden.
Marilyn Markham, vice president of AI and automation
strategy at American Express Global Business Travel: It doesn’t help
that my expectations were low… Travel is very experiential, right? It’s a human
experience… There’s a lot of prep that is more tech heavy and [needs] planning,
I would say with generative AI… it wasn’t an organic and automatic fit…. I
would say [that in the] last year, we have seen the interest that we would have
expected from the world of travel, maybe not business travel.
PhocusWire: Have you seen any specific AI initiatives
that you’re particularly excited about?
Blachford: I’m an investor in OTTO, a startup
using AI agents to book unmanaged business travel, which I think is going to
free up a huge amount of time for administrative and executive assistants
everywhere.
Maher: Yes, but it’s not just about the
technology — it’s about the mindset shift. Expedia’s AI integration for
personalized search is exciting because it doesn’t just enhance the booking
process; it rewrites the traveler’s journey from discovery to decision-making.
Another standout is Accor experimenting with generative AI for operational
insights, a move that could transform the ‘back of house’ into a predictive
engine for seamless guest experiences. These examples prove that when used
creatively, AI doesn’t just solve problems — it redefines them.
Bailey: Nothing… groundbreaking. I don’t think
[anything] that I see is like, ‘Oh, that’s giving exactly what you want.’ I
still feel as if we’re searching for stuff and what we want to find... We
thought when [this started and we all got excited], that maybe it would be
like, ‘This is going to change everything overnight,’ ... but I haven’t seen
that.
Greif: Gen AI video.
Markham: I’ve seen a lot of people trying to use
generative AI to be their travel agent in the leisure space. But the challenge
there has been accuracy of data. Because if the pandemic had never happened, I
think it would be really good, but because it has data that’s sort of getting
old and dated, there are a lot of businesses in our industries locally that
have gone out of business, have changed the servicing and restricted service,
and so it’s not up to date.
PhocusWire: Do you think the industry is moving fast
enough with this technology?
Blachford: AI is changing so quickly that it’s a
tall order to keep up just on the experimentation side, which a number of
companies seem to be doing well, and it’s risky to deploy scaled systems ahead
of the next phase shift, it’s a time for test and learn across the board.
Invest in AI not just for incremental improvements but for bold moves that redefine what hospitality means. Imagine predictive tools that not only recommend hotels but design an entire travel experience tailored to your preferences — before you even open a browser.
Melissa Maher
Maher: Honestly? No. The industry is cruising at
a comfortable altitude when it should be breaking the sound barrier. Travelers’
expectations are evolving faster than many companies can adapt. AI has the
power to anticipate needs before travelers even articulate them. The question
isn’t whether we’re moving fast enough — it’s whether we’re daring
enough to lead the pack rather than just keeping up.
Bailey: There's the opportunity to really, sort
of rebuild things almost from the ground up. But this industry is notoriously
slow, and there's a lot of moats that have been dug, as opposed to bridges
built. And so we’re definitely seeing people wanting it to happen, but not
people needing it to happen.
Greif: Travel never moves fast enough, some of
that [is] structural, some of its capital. I think that is the nature of human
beings and large organizations. So, the frictions are not the technology. Even
as the technology still needs to advance, the frictions are more about the
existing models of safely experimenting, of gradually getting and ecosystems
have to develop. I do think there is a gestation period, and we are in that
gestation period.
Markham: There’s definitely all the FOMO to fuel
the fire. Fast enough is really relative. I think we’re definitely moving
cautiously, which is fair, because we have to retain the confidence of people.
I think we’re seeing more innovation, and I would say fast paced moving with
startups. And the challenge there is that it takes a while for a startup to
mature… So, for right now, it may look like there’s not enough coming to
market, but there’s a lot being done.
PhocusWire: How would you suggest the industry might
better adapt and scale as others are?
Blachford: From booking to customer service to
coding assistance there are so many ways for the travel industry to test and
learn, it’s really a question of curiosity and enthusiasm at this point, and
online travel tends to punch above its weight in those categories.
Maher: The industry needs to stop playing
defense and start innovating offense. Invest in AI not just for incremental
improvements but for bold moves that redefine what hospitality means. Imagine
predictive tools that not only recommend hotels but design an entire travel
experience tailored to your preferences — before you even open a browser.
Beyond that, companies must embrace cross-industry collaboration. Why not learn
from healthcare or retail, where AI has already cracked personalization at
scale? Scaling isn’t just about resources; it’s about rethinking the limits of
what’s possible.
Bailey: I think it’s going to have to be either
bringing costs down or bring[ing] revenues up. The revenues up is always
speculative, though… because nobody knows exactly if something’s going to
increase revenue by 1% or 100%. So, it may even be bringing the cost down…
Figuring out, how do we make it more efficient?
Greif: I think the easy answer is, one bite at a
time… focus discreetly, prioritize one or two use cases that are right. Get
that done. It’s also getting your employees to get familiar with and learn how
to use the tools and creating.
Markham: Others? Are they though? If you think
about just general consumer technology, there are not a whole bunch of
companies you can point to who have had a fantastic adoption of generative AI.
I feel there’s more FOMO than reality right now around generative AI and
enterprise adoption, whatever your enterprise is.
Note: This story first appeared on PhocusWire