OpenAI drops plan for travel bookings inside ChatGPT

OpenAI has apparently changed its plans regarding processing travel bookings through its ChatGPT platform, opting to use a third-party application instead. This decision, revealed this week, has caused the shares of Expedia Group and Booking Holdings to rise significantly.

This decision indicates that OpenAI is opting not to process complex transactions involving travelling through its chatbot.

OpenAI was reportedly developing a system that would enable users to book hotels or make purchases without leaving the platform, but it has now decided to use a third-party application instead.

The analysts referes to this as a “stunning admission", implying that the idea of AI platforms replacing traditional apps as the “new operating system” is not going to come as soon as anticipated.

Handling payments, cancellations, refunds, and customer support is a complex process. In fact, these are some of the most difficult operations to scale, and there are also some regulations that come with them, especially in the travel industry.

Travel agencies, on the other hand, act as contractual intermediaries with the responsibility of providing booking services, as well as customer support. In fact, this is a complex process, and AI platforms would probably want to avoid it.

There is also precedence in the fact that Google, in 2015, introduced the “Book on Google” service, which was later shut down in 2022 due to low uptake.