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According to innovation specialists Plug and Play, generative artificial intelligence (AI) and environmental, social and governance (ESG) activities are attracting the highest levels of investment in travel technology today.
Experts from the Silicon Valley-based firm shared an insight into the latest investment trends on the travel tech stage at the Arabian Travel Market (ATM) 2023, which will conclude today (May 4) at the Dubai World Trade Center (DWTC). Series Insights.
On the third day of the show, innovation experts explored how travel startups are being impacted by macroeconomic headwinds and fears of a global recession as part of the session Leading Investment Trends in Travel Tech.
Kristie Choi, an early technology investor at Plug and Play, noted a “sharp pullback” in venture capital (VC) investment in the second half of 2022, a trend that will continue into the first quarter of 2023.
“As dire as this may seem, billions of dollars of dry powder remain to be obtained,” she told attendees. “Dynamics in the travel tech space tend to follow similar patterns to the broader tech market, and we’re seeing an increased focus on profitability and cash efficiency in this space.”
Choi said the travel industry is leading the way in generating AI investment and adoption. This technology is used to enhance the customer experience by facilitating travel planning, automating refunds and back-office processes, and supporting content creation. She explained that ESG is also a major focus in the travel tech space, with continued investment in transparent data reporting and sustainable aviation fuel (SAF) helping to promote responsible tourism. Meanwhile, the influencer economy is “driving out” the online travel agency (OTA) business, Choi said, as companies look to appeal to the Gen Z market by integrating direct bookings into content creators’ channels.
Following Choi’s presentation, Mike Sung, Director of Partner Success for Travel & Hospitality at Plug and Play, joined OAG Chief Product Officer Natalie Seatter for a conversation on travel technology investment trends at the ATM Travel Tech Stage.
Commenting on the growing importance of artificial intelligence to the travel industry, Sung noted: “It will be very interesting to see how generative AI can be exploited, especially among travel providers in the metaverse. It’s not just about text when it comes to generative artificial intelligence. It’s also about audio, video, and graphics. I think this technology will accelerate [Web3] solutions, especially for the tourism and hospitality industry. “
Commenting on the need for investment in data transparency, Seatter said: “The elephant in the room is the large cloud-based data warehouse [the industry] Used to power the platform. Either it’s really hard to understand the carbon cost of these platforms, or no one bothers to tell you how big it is — or both. I think that’s certainly one of the challenges we face. “
The third day of the conference followed the ‘Plug and Play: Sustainable Tech – Startup Pitch’ on Day 2 of ATM 2023, with six new ventures vying for a range of industry support and data. Sustainable commercial food waste solutions company Winnow emerged as this year’s winner after a tough competition from CarbonClick, Eilago, Hotelverse, OACIS Middle East Limited LLC and Thrust Carbon.
ATM 2023 is co-hosted with Dubai World Trade Center with strategic partners including Dubai Department of Economy and Tourism (DET) as Destination Partner, Emirates as Official Airline Partner, IHG Hotels & Resorts as Official Hotel Partner , and Al Rais Travel as an official DMC partner. – trade arab news agency
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