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AI, algorithms and Uber’s potential acquisitions: PhocusWire’s top opinion stories of 2024


Creating a forum where thought leaders in the travel tech world can share their insights and views on significant trends and developments in the industry is part of what we do at PhocusWire.

These opinion pieces are often among our most popular
stories in any given week, sometimes even month — so we created a roundup of the most popular ones in
2024. This year’s popular op-eds focused heavily on artificial intelligence including ChatGPT
and Gemini, but also covered algorithms, rumors of an acquisition for Expedia Group and major events like the CrowdStrike outage and Google’s algorithm leak.

Watch for our countdown of the top 10 travel tech news
stories in the coming days. Meanwhile, in reverse order, here are the top
opinion pieces from 2024 …

10. 3
essential AI powered solutions travel companies must integrate in 2024

Written by Ivan Saprov of Voyagu, this viewpoint from April
discussed the rapid evolution of artificial intelligence and how it’s being
used to improve operational efficiency and customer satisfaction.

The article focused on three AI-powered solutions:
accelerating onboarding and reporting processes, optimizing project management
and elevating the customer journey through AI.

”It is critical to have thorough preparation and well-oiled
processes that ensure that all information is digitized and readily available
for AI to do its work,” Saprov wrote. “This highly increases the quality of the
results obtained. In the same vein, insufficient groundwork may lead to worse
outcomes compared to what the company would have achieved without AI.”

9. Could
using algorithms to set hotel rates become illegal?

Written by Cloudbeds CEO Adam Harris, this opinion from April
sheds light on the legal and ethical concerns around algorithmic pricing in the
hospitality industry.

The article included thoughts from Cloudbeds’ revenue management partners, Ari
Andriopoulos of RoomPriceGenie and Shawn Walchef of Cali BBQ Media. Both believe collusion is difficult in the industry and that revenue
management tools benefit consumers and businesses equally.

“Which brings us to what most people are going to miss as
this unfolds. The FTC insinuates that algorithmic price-fixing lurks in
hospitality. That might look like a business intelligence issue, but I think
it’s really about rate shopping: Are hotel guests surfing an unrigged market
when they surf Booking.com? We believe they are. Price fixing isn’t realistic,”
Harris wrote.

8. Preparing travel
for the future of AI search

Written by angel investor and Kiwi.com vice president of
growth and brand Mario Gavira, this opinio discusses how AI is transforming
search marketing and provides marketers with insight on how to stay ahead in
this evolving landscape.

The piece focused on three areas: switching from SEO to GEO,
blue links to multimodal ads and ads to product reviews.

“Search in its current form factor is ripe for profound
change over the coming years. But the underlying need of travelers to browse
the world wide web for information when researching, planning and booking their
travel plans will last over decades. Travel players would be wise to start
future-proofing their search marketing roadmap today to ensure they stay
relevant for travelers in this brave new world of AI search,” Gavira wrote.

7. The CrowdStrike outage was a wake-up call for the travel industry – Here’s how it
should respond

Written by Intellias vice president of travel and
hospitality Fritz Oberhummer, this piece from July focuses on the aftermath of the global outage caused by an update from CrowdStrike, a provider of virus
detection and response services.

The article highlighted the need for better resilience in technology
systems, suggesting that travel companies should integrate embedded AI systems (Edge
AI) in their IT systems. These solutions, such as a RAG (retrieve, augment,
generate) framework, can diagnose and resolve issues, detect problems and
provide automated responses to system failures.

“The future of travel lies in intelligent, proactive, and
resilient systems powered by AI,” Oberhummer wrote. “The question should no
longer be “if” the industry will adopt these technologies, rather
“when,” and how quickly it can do so to safeguard its operations and
earn back the trust of customers.”

6. How
Google’s “gatekeeper” changes in the EU are affecting hotel clicks and bookings

Written by Javier Delgado of Mirai, this viewpoint from May highlights
Google Hotel Ads while discussing the impact of the European Union’s Digital Markets
Act (DMA) on the hotel industry.

After Google implemented changes to comply with the DMA, there was an impact on hotel
campaigns in Google Hotel Ads – a 30% drop in click-through rates
and a 36% decrease in direct bookings. These changes led to a reduction in
hotel visibility and profitability, leading to a reliance on online travel
agencies (OTAs) such as Booking.com and Expedia.

“It is worth noting that the EU’s current implementation of
the DMA favors large companies based in the United States, such as Booking
Holdings or Expedia Group, while harming the European user experience by
reducing the profitability and competitiveness of the hotel ecosystem,
especially for smaller independent chains and hotels,” Delgado wrote.

5. Gemini,
Google Travel and the threat to OTAs

Written by Magpie founder and CEO Christian Watts, this
opinion from March explores how the rise of generative AI, including OpenAI’s
ChatGPT and Google’s Gemini, is challenging Google’s dominance in search.

The story predicts that changes in how travel content is
searched and discovered could happen rapidly, with significant changes for the
travel industry such as shifting travel planning and publishers and businesses being
forced to adapt quickly as traditional content optimization strategies may no
longer apply.

“These changes might happen much faster than people expect.
ChatGPT, especially with the integration of GPTs, is challenging Google daily,”
Watts wrote. “Google can no longer afford to roll out changes with a timeline
of their choosing. Those changes could be drastic for many publishers, much
more so than the previous algorithm updates. Optimizing content for LLM
training is not well understood – it’s new to everyone. People in the travel
industry should be following this closely.”

4. Why
Uber isn’t buying Expedia, but I still think Amazon should

Written by MMGY Global former president and CEO Clayton Reid,
this piece from October focuses on the speculation around the acquisition of
Expedia Group by Uber and considers the possibility of Amazon acquiring Expedia
instead.

The story weighs the respective pros and cons of Uber or Amazon acquiring
Expedia. Reid notes that the Uber merger would be a strategic misstep for
both companies and that Amazon could leverage unique synergies and customer
base to transform the travel industry while also gaining a significant market
share.

“Suppliers, who are increasingly looking for lower cost
distribution, simplified pricing, closed user groups and a solution for the
coming LLM/AI generative learning disruption, would see major opportunity
through capital investment and intellectual property that a new entity offers,”
Reid wrote. “Just as with any deal in today’s regulatory environment,
challenges would include anti-trust concerns, but with Booking, Airbnb as well
as other aggregators such as Google and Ctrip firmly in place, there is an
argument for the deal.”

3. What
American Airlines’ Vasu Raja’s exist says – and doesn’t say – about NDC

Written by Jeff Klee of Amtrav, this piece from May points
out the issues surrounding American Airlines’ New Distribution Capability (NDC)
approach and the recent changes in its sales approach.

While noting the mixed reactions from travel management
companies, the author argues that while American Airlines’ may have been
wrong to alienate large corporate clients, its push for NDC was a step in the
right direction to benefit travelers. 

“I urge American to seize this opportunity to not just
rethink what they’ve done wrong, but also double down on what they’ve done
right,” Klee wrote. “Airline corporate sales philosophies ebb and flow but
technology tends to endure. Long term, if we want TMCs and online booking tools
to be relevant, they need to be able to offer the same content, options and
servicing that travelers get on airline web sites. NDC can help an airline be
able to say to their loyal travelers: you can book however and wherever you
want, and you won’t get a diminished experience.”

2. Google’s
algorithm leak and what it means for travel SEO

Written by Propellic CEO Brennen Bliss, this opinion from June
discusses the Google API documentation leak which revealed details about how
Google’s search algorithm functions.

Key takeaways for the travel industry include: clicks and
CTR matter, domain age is a factor, subdomains are treated separately and Google
Sandbox.

Strategic implications for the travel industry include: focus
on comprehensive quality, content update frequency, strategic link building,
technical SEO considerations and investment in user experience.

“The Google API documentation leak offers valuable insights
for travel industry executives, highlighting the importance of strategic,
comprehensive SEO practices. By focusing on high-quality content, regular
updates, strategic link building and user experience, you can better position
your website in the competitive search landscape,” Bliss wrote.

1. How an
Uber-Expedia merger could redefine the travel experience

Written by SilverRail co-founder and CEO
Aaron Gowell, this viewpoint from October discusses the potential merger between
Uber and Expedia, arguing that the merger could revolutionize the travel
industry by creating a “super app” that combines the features of both companies.

The story focused on the strengths of both companies and the potential benefits of the merger, some of which include an enhanced
user experience, increased customer loyalty and leveraging AI and data.

“A merger between Uber and Expedia could
redefine the future of travel,” Gowell wrote. “Combining Uber’s high-frequency
engagement with Expedia’s vacation-planning expertise, layered with powerful
AI, would create a one-stop-shop for everything travel-related. It’s a bold
move, and if executed right, it could change consumer behavior, disrupt
competitors and build an entirely new ecosystem in the travel sector.”



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