We aim to assist you in staying updated on how travel brands are exploring and incorporating generative artificial intelligence solutions from companies like OpenAI and Google. In order to achieve this, we are conducting surveys with technology professionals at prominent travel brands and will periodically share their responses here. One of the contributors is Dennis Klett, the co-founder and CEO of Lodgify, a vacation rental software company, who has shared with PhocusWire how they are implementing generative AI. Our journey into generative AI began at the start of 2023, shortly after the release of ChatGPT. Although we were aware of the existence of large language models (LLMs) and the underlying AI infrastructure for some time, we felt that mass adoption in the vacation rental industry was not yet feasible prior to 2023. However, the advent of ChatGPT suddenly made LLMs accessible to everyone. It wasn't just the technology itself that was disruptive, but also its widespread application. ChatGPT made AI highly intuitive and widely accepted by consumers. This motivated us to embed LLMs throughout our software to help our customers save time in managing their vacation rental businesses. Our initial focus with generative AI was on guest-host communications, a crucial aspect of the booking process and overall guest experience that can often be time-consuming and repetitive for hosts. Currently, we are dedicated to the launch and continuous development of our first AI feature, Lodgify's AI Assistant. This GPT-powered messaging tool is integrated within the host's unified inbox and allows hosts to generate responses to guests with just a click. When activated, it quickly analyzes the latest guest message and drafts a contextually relevant response using information from the host's Lodgify database and other online sources. This includes details about the property, reservation, policies, nearby attractions, recommendations, and more, enabling hosts to efficiently address guest needs while saving significant time. Hosts still maintain complete control and have the option to review or edit the AI-generated response before sending. We are currently expanding the capabilities of our AI Assistant even further. One forthcoming iteration includes immediate translation of AI-generated responses, allowing hosts to respond in the traveler's native language or other languages as necessary.

The main challenge we face regarding generative AI is persuading people to discover and try it out. Although we assumed that ChatGPT would be widely embraced upon its launch, it has not yet become a mainstream feature in the vacation rental industry. Our AI Assistant was recently introduced, so only a small number of our customers have started utilizing it. However, those who have discovered the tool are becoming avid users due to the accuracy of the AI-generated responses, requiring minimal edits. It is an early version of the product, yet it is already proving to be extremely helpful. As we gather more data and feedback, our goal is to enhance its intelligence and reduce the need for human intervention, enabling hosts to communicate even more efficiently and foster guest relationships with the support of AI. In terms of the travel industry as a whole, we believe generative AI holds the most potential for disrupting distribution, particularly in the critical stages of search, discovery, and booking travel arrangements. Imagine a virtual travel assistant that truly understands your preferences for flights and accommodations, optimizing your logistics accordingly (ideal timing, layovers, locations, amenities, etc. ). It could even secure the best prices within your budget, making it an incredibly compelling service. While it remains unclear which virtual travel assistant will emerge as the leader, AI unquestionably has the capacity to reshape the distribution landscape. Observing the evolution of this field in the coming years will be fascinating, and we will ensure that our customers can continually market their rentals through our channel manager to the leading distribution channels. Looking ahead one year, we anticipate using generative AI for automating workflows beyond messaging. Given the rapid and exponential growth of technology in this field, it is difficult to predict precisely how we will incorporate AI throughout our product one year from now. ChatGPT demonstrated how swiftly things can evolve, so we are closely monitoring and experimenting with new AI use cases. Our commitment to our customers is to keep them informed about the latest innovations through our all-in-one software. As a company, we view AI as an integral part of our work and deeply integrated into our product.