Travel is proving too turbulent for AI

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In focus

• Travel was bracing for AI disruption, but it never arrived
• CEO gets real on Supabase’s journey to a $100 billion company
• Grab’s acquisition of Atome is the 6th largest exit Southeast Asia has ever seen

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Hello reader,

I hate flying. It makes me anxious.

A lot can go wrong, from booking to boarding alone. I’ve learned that firsthand since moving to Bengaluru for work.

In the seven years I have lived here, I have missed more than a few flights. It’s no surprise, as the drive from the city center to the airport can take anywhere from 1.5 to three hours, depending on traffic.

A conversation with an online travel executive last year gave me hope that AI could ease some of that anxiety. They said the industry was working toward agents that could plan and book an entire trip from a conversation. They would reserve flights and hotels, ensure a cab arrived at your doorstep, and recommend nearby places and restaurants.

Then came Ixigo’s AI agent, which was launched earlier this year. Called Tara, the agent “understands you, assists you, and gets things done for you,” says the company.

Finally, I thought. And so, I tried it.

I asked Tara to plan a trip to Mumbai around an event. Unfortunately, it got the dates wrong.

AI was supposed to disrupt travel, particularly the online travel agencies that dominate the industry. That has not happened yet, and my experience with Tara offers a clue as to why. Moreover, no notable AI upstarts are taking market share from them, not even ChatGPT or Claude.

In today’s feature, I take a closer look at AI’s limited impact on travel and why the incumbents are likely to retain control, at least for now.

This week also marked the 15th edition of Tech in Asia Conference, our flagship event. On the sidelines, my colleague Samreen sat down with Supabase CEO Paul Copplestone, who explained how the company could become a US$100 billion business. The customers that take it there may not be humans – they may be AI agents.

Pranav Balakrishnan, AI reporter

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