Market sentiment for artificial intelligence in the travel industry has changed, says Jake Fuller. BTIG.
“When we first started talking about genAI, I think there was a big concern in the market that it would disintermediate OTAs [online travel agencies],” Fuller said while moderating a panel Phocuswright Conference November. “It feels like the pendulum of worry is tipping back towards, maybe, ‘Well, maybe this is an opportunity.'”
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He asked the Wall Street analysts on the panel about their views on artificial intelligence and the scope of risks and opportunities associated with the technology in the travel industry.
Mark Mahaney, Senior Managing Director and Head of Internet Equity Research Evercowho expressed his belief that artificial intelligence can help travel companies aggregate supply and consumers. He added that he believed companies like Airbnb, Expedia.com and price line Will be able to use this to cut costs.
“I think AI can be a tool for these companies to improve their revenue streams, improve their cost processes, [their] The production process, whatever it is,” Mahaney said.
Naved Khan, Managing Director B. Riley Securitiessaid that when artificial intelligence started making waves a few years ago, there were mixed views on its potential impact. But the answer remains unclear.
“We’re still trying to figure out how it really changes the travel business and other businesses. So I think there’s always a risk of disruption,” Khan said. “And I think if you have to look at the risk reward, I think the bigger players in the travel space are probably going to benefit more than anybody else.”
He believes that large, established travel companies will do better with AI because of the vast amounts of data they can tap into.
The trio touched on AI and stocks, regulatory changes, consumer behavior and more in a wide-ranging conversation.
Watch their full discussion below.
Phocuswright Conference 2024 Executive Panel: Talk on the Street
