Priceline’s recent integration of artificial intelligence (AI)-powered voice technology into its booking system signals how the technology is changing the way travelers plan and purchase trips.
The travel company updated its Penny chatbot with AI-powered voice technology, using OpenAI’s GPT-4 API for real-time conversations. This development comes as the travel industry, worth $766 billion globally, sees most bookings happening online. Digital reservations could soon make up 65% of travel revenue. The new voice-enabled assistant aims to improve customers’ digital booking experience.
”Priceline’s integration of AI voice technology with its Penny chatbot most definitely brings a few advantages in terms of efficiency, especially for travelers who may find typing or using the web challenging due to vision or mobility impairments,” Eli Goodman, CEO of Datos, told PYMNTS.
Penny Voice allows users to perform hands-free searches for hotels, get recommendations and discover destinations through voice commands on Priceline’s iOS app and web interfaces. The technology integrates OpenAI’s GPT-4o, voice engine and real-time API with Priceline’s customer data platform and inventory.
“With Penny Voice, we’re further redefining how people plan and book travel,” Brett Keller, CEO of Priceline, said in a news release. The company aims to simplify the travel planning process through conversational interactions.
The travel industry is rapidly adopting AI technologies to enhance customer experiences and streamline operations. Expedia Group recently upgraded its AI-powered trip planning feature across its brands, including Expedia, Hotels.com and Vrbo. This tool uses natural language processing to help users plan complex itineraries and find suitable accommodations.
Amadeus, a travel technology provider, launched its AI-driven travel assistant in June. The assistant helps travel agents quickly access and interpret vast amounts of data to better serve their clients. The system can analyze travel patterns, predict disruptions and suggest alternative routes in real-time.
Airlines are also embracing AI. Delta Air Lines expanded its AI-powered chatbot capabilities in late 2023, allowing customers to change their bookings and receive personalized travel recommendations. Meanwhile, travel booking app Hopper has been using its AI-driven price prediction algorithm to help travelers find the best times to book flights and hotels, claiming to save users about $65 on their bookings.
However, industry experts pointed out significant challenges ahead.
“AI struggles with providing comprehensive information on multi-destination itineraries or special accommodations such as multi-family, accessible and other special requirements for travelers,” Steve Torres, travel expert at TeachMe.To and founder of The Traveling TORO, told PYMNTS.
This observation underscores the complexity of travel planning and the nuanced understanding often required to meet diverse traveler needs. Multi-leg journeys, group bookings and accommodations for travelers with specific requirements remain areas where AI may need to catch up.
Goodman raised another concern: “An error in the spelling of names, particularly in the context of flight bookings, can cause an issue. With global travelers speaking different languages and accents, AI voice systems must achieve near-perfect accuracy.”
Priceline acknowledges these challenges and plans to address them in future upgrades. The company anticipates a full rollout of the real-time API, allowing Penny to respond to a customer’s tonality with emotionally appropriate responses. The system is being trained to understand diverse accents and speech patterns in over 120 languages, aiming to make the service more globally accessible.
Experts said the role of human travel advisors remains crucial despite the technological leap.
“This is a service where travel advisors are key — you have a live person you can actually communicate with,” Torres said.
Goodman echoed this sentiment.
“AI voice technology is more likely to remain a complementary tool, adding value to the overall user experience rather than entirely replacing established methods,” he told PYMNTS.
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