NEWS SPECIAL REPORT


“We want to hold our prices and not get involved in a race to the bottom.”


Adopting AI The panellists all agreed artificial intelligence would play a crucial role in the future of their businesses and in the sector generally. But they said firms should think carefully about how the technology can benefit them before they adopt it, to ensure it’s done correctly, rather than rushing the process purely for the sake of it. Goldsmith said Virgin Atlantic is


using the tech for pricing efficiencies, which is “really adding value”, while Parton said it is “assisting us [Celestyal] with personalisation”. Simon Powell, chief executive


officer at Inspiretec, said AI is “like nothing you’ve seen before”. “Thirty-five years ago, we were


wondering how we would ever adapt to the internet,” he said. “Last week, one of our clients took a booking worth £186,000 entirely online. “We would never have thought


that a customer would spend that kind of money without talking to someone, but they


travelweekly.co.uk


Venture capitalists are investing in companies with models based on AI. They know it can’t deliver perfectly on the front end yet, but are betting the farm it will in a few years’ time


have. And it’s happening more often. “It shows how quickly the internet


has matured. Fast-forward that to AI and the rate of change is off the scale. It’s developing like nothing you’ve seen before.” Powell added that, currently,


the adoption of AI does not mean guaranteed success for a company. “In terms of how it will affect travel, nobody in our industry as it stands will be a winner with AI – it will be a new entrant without any of the baggage,” he said. “Just look at the likes of Expedia:


they came into travel because they felt they could disrupt the industry and did. It will be the same with AI. Venture capitalists are already investing hundreds of millions in companies with models based on AI. They know it can’t deliver perfectly on the front end yet, but are betting


the farm it will in a few years’ time. “So the winners will be those who


come into the industry without any baggage, not those tinkering around the edges.”


Adding value However, Powell encouraged all firms within the industry to adopt the technology when they have the capacity to do so. “We should still embrace it,” he


continued. “It can still help us all. Technology for technology’s sake is a waste of time; it has to add value – either helping you sell more, helping you operate better, or making processes more efficient.” Simon McIntyre of Iglu.com


agreed, saying: “We have to ask what problem it can solve, rather than just shoehorning it into our businesses. We need to be asking how it can be


used to deliver faster, richer data post-booking.” McCreadie echoed their views,


saying: “It has to be handled right – it has the potential to be as transformative as the telephone.” Lancashire offered a word of


warning, saying AI can sometimes generate incorrect information, which “is an issue in our industry, where we base our credibility around expertise”. However, Derek Jones of Not Just


Travel suggested: “It has to get things wrong now so it can learn and get better.” And Powell said: “Most first


drafts of what you get back from AI is 90% of what people want. It’s not perfect, but it’s good and it returns it in about three to four seconds. And it gets cleverer and cleverer every time. It’s now even writing its own code.” He went on to say the current


“prime leader” in the use of AI is Booking.com, which is using the technology for customer-facing and back-office functions. He warned that if the travel


industry misses out on introducing AI in the right way, “we do so at our peril”.


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