There’s so much happening with artificial
intelligence (AI), it can be exhausting keeping up.
The accelerating release cycles of new
models from the incumbents, combined with the proliferation of emerging players
with new spins on AI technology, is head-spinning. Add to that macro-level
concerns like local, national and global regulatory thrash, ethical debates and
financial market turbulence, and we’re buried under an incredible layer of
externalities before we even get to the nuances of applying AI to the travel
and hospitality sector.
Overall, it feels as if AI is sucking
the oxygen out of the room.
Even in investment circles, from pitch to podcast, everything seems to be
focused on AI, to the exclusion of all else. I’ve said before that at Thayer, we’re
more interested in hearing from entrepreneurs about the business problem they
are solving, the markets they are opening and the efficiencies surfaced, rather
than how clever their application of ChatGPT or Claude is.
Obviously, in our portfolio we have
businesses who are using AI to solve these problems and others, but we’ve
invested in them because of their vision, their passion and because we see the
potential in what they can do—not because they have a “.ai” in their name. There
is an authentic obsession with solving a problem that captures our attention
more so than a fancy piece of technology.
Being human
There’s another aspect of AI that’s underplayed
or overlooked, and it’s something I’ve been wrestling with over the past year
or so: What is this hyperfocus on AI
doing to the human side of the travel and hospitality sector?
The travel and hospitality industry is
built on authentic human connection. And, of course, I grant that it’s supported
by technology (including many of our portfolio companies). But the actual
experience of the flight, the hotel or the tour—the “why” of the trip—is the
trigger that generates the emotional response we seek when we travel. It’s what
actually happens in-trip, who you meet, what you see, eat and hear, that generates
the lasting memories, not how quickly the agentic AI generated the itinerary.
AI isn’t going to come in and
fundamentally change that human relationship to travel and experience. That’s
still going to matter a ton. But the way that hospitality is delivered, weaving
those elements of authenticity into the operational stack of the business, is
where the tech-driven fundamental changes are starting to happen. Tech can elevate
the experience by supporting the human touch, not replacing it.
The businesses that are most effective
in finding ways to give their guests the best overall experience—human-centric
and/or humans supported by tech to service the guest—have the best chance to
retain the customer over the long-haul, generate loyalty, drive positive word
of mouth and repeat bookings. They will be the winners.
Case (study) in point: Travel Curious
+ Redeam
One example of blending the authentic
human touch with technology is the recent addition of events and experiences
platform Travel Curious to our
portfolio, via its acquisition of our portfolio company Redeam, a B2B connectivity platform for
in-destination activities and live events tickets.
Travel
Curious has built a comprehensive end-to-end B2B experiences platform in the
sector, but it is also known for its portfolio of exclusive and curated private
tours. Their expert and human guides, along with local operators, are specially
recruited and trained for their personal and rich storytelling approach to
crafting in-destination experiences, which is basically the complete opposite
of AI.
We saw the opportunity to help Travel Curious expand its reach by integrating
Redeam’s connectivity platform with its experiences platform. This partnership
has the potential to scale Travel Curious’s highly personalized and curated
approach to tours, bringing exceptional “human” experiences through their
guides and local operators, inspiring travelers worldwide.
Both companies take advantage of AI
in all aspects of their business, from streamlining operations to augmenting
content to enhancing their marketing outreach. But would we call them “AI”
companies? Not at all.
And while we can’t infinitely scale
human tour guides the same way we can scale software, we can use technology—including
AI—to cost-effectively source, train, onboard and deploy these brilliant human
guides to more cities and destinations, further expanding access to that authentic
human connection we all crave when we travel.
Connections count
At the end of the day, the
fundamentals of delivering (and experiencing) amazing hospitality will always
be based on that human connection. AI technologies can enhance that around the
margins, but I don’t see it replacing the core tenets of authentic hospitality.
Our team continues to look for
opportunities to support the travel and hospitality companies that keep that authenticity,
that human connection as their north star, leveraging technology in service of
that vision. Tech is certainly a part of the human
experience, but it’s worth stepping back every now and again, to prick the AI
bubble and to reconnect with travel and hospitality’s core role—to connect
people with exceptional experiences.
