Market sentiment has changed around artificial intelligence in the travel industry, according to Jake Fuller, managing director of BTIG.
“When we first started talking about genAI, I think there was a big concern in the market that it would disintermediate the OTAs [online travel agencies],” Fuller said while moderating a panel at The Phocuswright Conference in November. “And it feels like on that pendulum of worry, we've maybe tilted back towards 'okay, maybe it's an opportunity.'”
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He asked fellow Wall Street anaysts on the panel how they feel about AI and the spectrum of risk and opportunity for the travel industry in relation to the technology.
Mark Mahaney, senior managing director and head of internet equity research of Evercore, said he believes AI can help travel companies to aggregate supply and consumers. He added he believes companies like Airbnb, Expedia and Priceline will be able to use it to cut costs.
“I think about AI as something that can be a tool for these companies to improve their revenue streams, improve their cost processes, [their] production processes, whatever it is,” Mahaney said.
Naved Khan, managing director of B. Riley Securities, said that when AI started to make waves a couple years ago, there were different perspectives 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 that you can be disrupted,” Khan said. “And I think if you have to kind of look at the risk-reward, I think the larger players in the travel space are probably positioned to benefit more than anybody else.”
He believes large, established travel companies stand to fare better with AI thanks to the amount of data that they can leverage.
The trio touched on AI and stocks, regulatory changes, consumer behavior and more in a wide-ranging conversation.
Watch their full discussion below.
The Phocuswright Conference 2024 Executive Panel: Street Talk