Examining ChatGPT and Generative AI's Impact on the Travel Sector
The buzz around Microsoft-funded OpenAI’s ChatGPT generative artificial intelligence (AI) and other advanced technologies and their potential applications across various industries has been growing lately. Researchers predict that the coming year will see an increase in generative AI’s implementation for specific functions across a range of business sectors, with the travel sector being one of the most likely to adopt ChatGPT and similar AI programs.
Generative AI is well-suited to performing customer service functions, thanks to its unique natural-language processing and response capabilities. Its ability to interact conversationally with users while instantly analyzing vast search engine databases provides interesting possibilities for itinerary building and question answering. Glenn Fogel, the CEO of Booking Holdings, Booking.com’s parent company, sees ChatGPT as a “virtual assistant” that presents users with trip options, recommendations, and helps build and book itineraries based on their complex conversational queries. However, he believes that AI will not replace human interaction since travel is about connecting people and communities, and that human connection will always play a crucial role in the travel experience.
Max Starkov, a hospitality and online travel industry consultant, believes that these technologies are advanced tools that enable smart operators and vendors to better serve their customers and increase market share. ChatGPT is poised to shortcut the customer’s path from receiving a recommendation to making a reservation. Big-name online travel agencies such as Kayak, Expedia, and Trip.com have quickly implemented ChatGPT chatbot plug-ins on their websites and mobile apps. The OTAs have already shown the main uses of ChatGPT in travel: trip planning and customer service. With AI as a planning tool, the OTAs can almost immediately transport travellers from the planning to the booking phase of the customer journey.
ChatGPT creator OpenAI has outlined the technology’s best-use applications within the travel sector as “enhanced chatbot, virtual assistants, translator of content, and marketing and website copywriting.” However, time will tell whether generative AI will remain confined to such functions or expand into many more roles within the industry.
