This week, travel planning companies Despegar and Kayak introduced tools incorporating generative AI for improved integration. This move comes in line with a broader trend in the travel industry which has been moving towards enhancing travel planning and booking experiences with AI. About a year ago, giants like Booking.com and Expedia endorsed this trend by rolling out basic chatbots powered by ChatGPT. Having said that, these chatbots existed largely as standalone interfaces and did little to revolutionise the end-user experience.
While Despegar and Kayak function on distinct business models, their new tools offer valuable insights into what the future of the travel industry may look like. Despegar, an online travel agency has a large focus on the Latin American market. On the other hand, Kayak, owned by Booking Holdings, operates as a metasearch site that gathers options from various booking sites. The advancements introduced by the two companies suggest a more integrated and comprehensive digital travel agent system, however, it appears that we are still some distance away from fully realizing this vision.