There’s no argument: A lot of functions in travel will be replaced
by agentic artificial intelligence (AI), and it’s happening already. A new
agentic AI-dominated ecosystem is on the horizon, prompting many business
leaders to look at what the future holds and ask the question: How can my
company excel in this new world?
As agentic
AI embeds deeper into travel’s B2B and B2C value chain, the need for answers is
intensifying. Recent Phocuswright research found that one in three travelers from Europe and the U.S. were
using generative AI to plan or enhance their trip, creating the market for
agentic AI to come in and do more.
At the same time, agentic AI continues to
get better in areas where it is already amplifying human capabilities while
bringing in new functionalities that drive new use cases, replacing more tasks
but also creating room for innovation.
Every business will have its own
checklist, but there are some constants to consider. Agentic AI needs tools—anything
the AI can use to perform a task—to fulfill its potential within travel,
as many of the emerging use cases can only be delivered if the agentic
AI has the right tools for the specific task it has been assigned.
Tools will become the differentiator in
the age of AI. Every agent needs to invoke other agents or tools.
Foundational thinking
A good starting point is to think about
how exposed you are to what large language models (LLMs) can directly replace
and where your moats are.
As things stand, anything content-related—translations,
new content, tones of voices—is well within the capabilities of agentic AI and
its underlying LLMs. These models, which are based on neural networks, excel at
applying pattern matching, reasoning, problem solving and derivative creation
to a wide range of content-related tasks.
These LLMs can also be enhanced with tools,
either embedded directly into the agentic AI (as appears to be the case with
the recently-launched ChatGPT agent) or tools which can be discoverable and invokable by the agentic AI.
This combination of LLMs and tools can vastly enhance the field of application
of agentic AI and create paradigm shifts in the value chain.
Agentic, APIs and data
In order to play an important role in
this new world, businesses need a strong data foundation. The good news is that
agentic AI systems can operate within the existing travel tech ecosystem, which
is a great advantage for companies who have done the heavy lifting of getting
(and keeping) their data in order.
If the data is high quality, an AI agent
can relatively easily transform unstructured into structured. What’s more
challenging is turning low-quality, incomplete and inconsistent data into
something robust and clean. It’s essentially an entropy problem, trying to create order from
disorder.
Ever since the emergence of APIs, the
demand for better data has been part of the travel tech conversation. APIs
transformed many touchpoints across the value chain but in an industry as vast
as travel there remain many suppliers, often long tail, with weak APIs that are
in danger of missing out on the benefits of agentic AI. Businesses should be
asking: Does my business have the data structure and the necessary APIs that
make it compatible with AI agents and tools?
APIs are the backbone of an agentic
system. If you don’t have a robust API, AI agents and their tools will not find
you. There are ways to rewrite and restructure existing APIs to be even more
optimal for agentic AI, but the underlying principles behind APIs are a
prerequisite.
The launch of Model Context Protocol (MCP) reinforces the need for strong APIs. MCP
standardizes how LLMs and AI systems integrate and share data; in simple terms,
it acts as a "universal translator." APIs are the primary interface, the
doorway between agentic AI and the content they need to interact with. The API
exposes what can be done, and MCP provides the standard for how to ask for it.
Travel choices and options
In travel, MCP will allow agentic AI to
become transactional because it can connect to tools built around a supplier’s
inventory, pricing and availability APIs. AI agents, based on LLMs, can know
what the traveler wants and return a static itinerary, but tools are needed so
that the traveler can book, manage and service that itinerary.
Tools are becoming more “supplier aware”
in travel. Some are starting to use machine learning to identify which APIs are
engineered in a way that allows access to live pricing and availability in real
time. Access might be to a cache rather than the full database. There is a
better end-user experience when these results are prioritized over those
surfaced from less reliable sources.
So, the question every travel leader
should be asking is whether or not their data and APIs are strong enough for
this new reality. If the answer is yes, the follow-on is: How can I make the
API/MCP interaction better, quicker and faster? If the answer is no, then it’s:
What can I do to bridge the gap, and if that gap is too wide or deep, what are
my options?
There’s another fundamental question the
industry leaders are asking: To what extent do travelers actually want to use
agentic AI? Is there demand, at scale, for a tool that can find, plan and book
a trip automatically when there’s evidence that
travelers delight in crafting their own trips?
The answer is that agentic AI should be
able to support all possible scenarios. It can invoke tools to look for and
return an itinerary that the AI agent believes is what the traveler wants based
on their inputs but do so in a way that allows the traveler, or even a human
travel agent using an AI agent as part of their toolkit, to play around with
the itinerary and customize further with real-time pricing and availability. A
user-centric agentic AI system has an “autonomy slider” that allows the user to
influence how much they want to be involved in the process.
Final thoughts
The pace of change in the AI world shows
no sign of slowing down. If anything, it is accelerating, which means that
businesses need to double down on clarifying internally and externally what
their position is within the new age of AI, if their legacy value proposition
still stands.
There are many moving parts to this
dialogue and, as we saw with MCP 10 months ago, ChatGPT agent and GPT-5 more
recently, businesses also need to be flexible enough to adapt when the
landscape changes. It is a challenge but also a chance for businesses to thrive
once they understand the importance of their data, ensure the robustness of
their APIs and make the right choice when it comes to which AI agent to use,
which tools to invoke and which functions to provide.
About the author...
Manuel Hilty is the CEO and co-founder of
Nezasa.