AI’s Potential for Growth in Online Travel Agencies

The outlook on artificial intelligence in the travel industry is shifting, according to Jake Fuller, managing director of BTIG. Speaking at The Phocuswright Conference in November, Fuller noted that initial concerns about AI disrupting online travel agencies (OTAs) have eased. “We’ve moved from fear of disintermediation to recognizing AI as an opportunity,” Fuller said.

Wall Street analysts shared mixed views on AI’s impact on OTAs. Mark Mahaney, senior managing director at Evercore, believes AI can streamline travel services by aggregating supply and demand while cutting operational costs. “AI can help companies like Airbnb, Expedia, and Priceline improve revenue streams and optimize processes,” Mahaney explained.

Naved Khan, managing director at B. Riley Securities, noted that AI’s impact on travel remains uncertain. “We’re still figuring out AI’s effect on the travel business,” Khan said, adding that larger players may benefit more due to their extensive data resources.

The analysts highlighted AI’s role in enhancing customer experiences, automating processes, and reducing costs. As OTAs adopt AI-driven tools, they can personalize travel recommendations and streamline booking systems, improving user satisfaction.

The panel also discussed AI’s influence on stock performance, regulatory changes, and evolving consumer behavior. While risks exist, the consensus suggests that OTAs with significant data capabilities are well-positioned to capitalize on AI advancements, potentially driving growth in the competitive travel industry.

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AI’s Potential for Growth in Online Travel Agencies

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