AI Revolutionizes Consumer Travel
Artificial intelligence (AI) is transforming the travel sector, spurred by rising consumer expectations for seamless experiences. Several major players are integrating AI to streamline the process, from initial search to post-trip support.
One company at the forefront of this shift is Kayak. According to CEO Steve Hafner, the company is slated to launch AI agents this year to assist travelers with various tasks, including trip searching and booking. “With agentic AI, we can facilitate that without the consumer ever having to leave the Kayak experience,” Hafner noted. These AI agents move beyond basic information provision or single-task execution, unlike current AI chatbots. Instead, they are designed to complete multi-step tasks for the user, from itinerary planning to making reservations and managing payments.
To address potential concerns, Hafner emphasized a human oversight mechanism for the AI agents: “Agentic AI, like humans, makes mistakes. We want humans to … oversee that and be responsible for them. So at every step of the way, we tell them what we’re working on and what we’re doing, and they can take control of the process if they want to – and certainly before any payment gets submitted. They have to OK that.” This design aligns with data, which show consumers expect generative AI to enhance their travel but also want human oversight.
Kayak is currently experimenting with AI agents like OpenAI’s ‘Operator,’ which can interact with web pages and perform tasks like filling out forms, clicking, scrolling, and even ordering groceries.
Sabre, a major global distribution system, takes a different approach. Richard Ratliff, executive scientist at Sabre, explained that their AI focuses on smarter decision-making, enhanced personalization, and more efficient operations for airlines, hotels, and travel agencies. Their strategy hinges on three key principles: data-driven intelligence, openness, and modularity.
“AI learns from real-time booking behaviors, integrates seamlessly with existing travel systems, and allows companies to adopt only the solutions they need,” Ratliff said. Sabre’s AI-powered tools create more consistent pricing and more personalized offers by bridging the gaps between different travel systems.
Their AI-powered marketplace integrates content from airlines, low-cost carriers, hotels, car rentals, and rail bookings into a unified platform. This enables AI to optimize content delivery. Sabre offers tools like SabreMosaic, which helps airlines and hotels maximize revenue while improving the travel experience; Air Price IQ, which adjusts airfare pricing in real-time; Ancillary IQ, for pricing extras; and Upgrade IQ, which allows travelers to bid for premium seats.
Other players are also incorporating AI in their business. Costco Travel recently partnered with Travelport for its AI-powered search engine. Tripadvisor is collaborating with Perplexity AI to enhance its trip planning capabilities using reviews and AI-generated summaries. Airbnb, however, is focusing on using AI for customer support initially, according to CEO Brian Chesky.
Booking.com has expanded its AI tools with Smart Filter, Property Q&A, and Review Summaries. Expedia, too, has launched Romie, a travel AI assistant, and a personalized trip planner using AI. However, Expedia has also warned about the potential downsides of generative AI, highlighting its cost, computational demands, and the risk of inaccurate information.
