In this issue, I explore a fundamental shift in travel: from a world where execution is everything to a world where creativity and imagination matter most. Artificial intelligence is changing who can make products, how companies compete, and the importance of skills. The impact on travel is profound.
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How will artificial intelligence revolutionize the aviation industry? In the December edition of OAG’s Aviation Technology Innovation Radar, explore the rise of artificial intelligence in aviation. explore Three major breakthrough innovations Airlines and airports use artificial intelligence to streamline operations and increase efficiency. Don’t miss these real-life examples of AI transforming today’s industries!
The most clicked link in Newsletter #162 is almost a tie between Christian Watts (The arguments against OTAs miss the point) and Insight Partners (Artificial Intelligence will drive a fundamental reimagining of software).
I wrote an article about the story of building eDreams into Spain’s first unicorn from 1999 to 2014, when there was no startup manual or framework to follow. Here are my candid recollections, with the benefit of hindsight, of what worked (and what we learned) before terms like “pivot,” “product market fit,” or “customer discovery” were coined. From our early tweaks and chaotic innovations to the unconventional decisions that helped us succeed. Read+.
The gap between AI experts and AI influencers has never been greater.
Artificial intelligence overturns an age-old truth: When execution is everything, ideas are worthless. Now AI takes care of execution and creativity is everything.
“Hybrid Team” means three things to me:
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1990s-2010s: Employment type (full-time/freelance)
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2010s-2020s: Location (office/remote)
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2024+: Intelligent (human/artificial intelligence, organic/inorganic)
AI tools will do for software what YouTube did for video: transform it from a professional skill into a creative medium for anyone with an idea. This shift has two major impacts: First, content creators can now further stretch their creativity. They can now turn their insights into real products and businesses. Second, we will see an explosion in the number of people capable of creating software: from 100 million software engineers today to potentially over 1 billion software creators in a few years.
Just as content creation has grown exponentially over the past decade, we will see the same thing happen with software and products. The scale of what is about to happen is unimaginable.
We’ve expanded our customer profile to include what we call “citizen developers”—product managers, designers, data scientists, and operations professionals… There will be a divergence in roles between software engineers and software creators… …With AI agents and all of this, over time, software developers will become superhuman in their ability to deliver customer value. — Amjad Masad – Founder of Replit
The biggest catalyst for growth and innovation in the travel industry may come from outside the industry: Replit, a platform that expands the potential universe of software creators.
When a billion people are able to build their own travel products, we will see solutions coming from all over. Every frustrated traveler becomes a potential problem solver, and every travel creator becomes a potential product builder. Get ready for travel innovation to come from unexpected places: travelers themselves.
We all ask what the next billion-dollar travel company will be. But what if the future is completely the opposite?
The rise of AI tools will not only change who can build travel products, but who can build travel products. It will change the face of successful travel companies. Instead of large teams and venture capital, we will see an explosion of micro-enterprises that solve specific travel problems very well. Solo entrepreneurs armed with AI tools can now build and run products that would have required an entire team just a few years ago.
The future of travel may not belong to multi-billion dollar companies, but to millions of naturally combined professional solutions.
Speaking of alternatives to travel giants, Max Niederhofer (Partner at Heartcore Capital) makes a compelling argument for the potential of artificial intelligence to disrupt travel distribution. His main point is that AI agents will soon be able to bypass OTAs entirely. Instead of going to Booking.com to find boutique hotels in Rome, an AI agent can search direct listings, email the hotel and negotiate rates on your behalf.
While OTAs appear untouchable due to their network effects (more supply → more customers → more supply), AI may change the equation. These AI agents can handle aggregation and discovery, making OTAs critical while getting better deals by going direct. Read+.
TripAdvisor doubled its review page traffic with a smart move: using artificial intelligence to make real reviews more helpful instead of creating fake content. They use GPT-4 to analyze reviews and create summaries based on what travelers care about most, keeping original offers visible for greater transparency. The key is to use AI to enhance existing content, not replace it. The most powerful AI solutions are not always the most complex.
This insight comes from new research by Kevin Indig Tourism industry SEO in-depth research. Some other insights:
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Google is shifting traffic from OTAs to direct providers
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Expedia and Booking achieved 100% organic traffic growth with redesigned and improved flight directions pages.
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Searches for all-inclusive resorts led the growth of travel keywords.
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Attractions dominate searches (71%), well ahead of flights (16%) and hotels (7%)
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Trip.com’s AI tool doubles conversion rates
I like this. Go to Amazon, type “Thank my driver” into the search bar, and Amazon will give your last delivery driver a $5 tip for free. A free way to show a little love. No forms to fill out, no credit card required. Send appreciation (and money) with just a simple search phrase.
Imagine a similar project to thank hotel staff, tour guides, or flight attendants. Rather than spending your next million dollars on customer acquisition, investing it in showing appreciation and building emotional connections with the people on the front lines of creating travel experiences may lead to better returns.
If you live in the United States and want to spread some kindness today, head over to Amazon and type “thank my driver” into the search bar. It only takes 5 seconds to make someone’s day better.
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Mauricio Prieto
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