Can Layla's New AI App Transform The Hospitality Technology Game?

The travel industry is one of the many industries exploring the potential of artificial intelligence chatbots (think: ChatGPT and Claude) to revamp customer experiences.

Taking advantage of the potential of Generative AI, the Berlin-based startup Layla is developing an AI chatbot with an accompanying app that recommends new tourist spots and can also be useful for making reservations and bookings.

A partnership between Jeremy Jauncey, creator of the popular travel agency Beautiful Destinations with millions of followers on social media, along with Saad Saeed, co-founder of the food delivery service Flink, led to the development of the company.

After devoting the last decade to the rise of the creator economy and social media, they thought it was time to shake up the travel game. They explained that during the pandemic, many people relied on social media posts from platforms such as Instagram and TikTok to decide where to go on vacation once the lockdown was lifted.

Layla has amassed thousands of Instagram followers through the network of Beautiful Destinations, even before the company formally releases its chatbot and app today. It is the firm belief of the founders that the Instagram chatbot serves as an excellent jumping off point for users to explore potential vacation spots.

According to Saeed, after a few conversations, the startup encourages users to download Layla's app on Instagram. The software allows users to make their own lists, share them with others and engage in conversation with Layla about different vacations. In addition, the app provides a more comprehensive display of landmarks, ticket prices and accommodation possibilities.

According to Jauncey, the average consumer uses numerous websites for travel-related assistance, starting from finding ideas to actually making a reservation. The founders' goal with Layla is to make that process easier and faster!


So, how is the company planning an AI-driven travel industry overhaul?

Layla just received a €3 million ($3.2 million) early funding and partners with Booking.com and Skyscanner to present hotel and airline alternatives. Fee sharing for these transactions is its initial revenue source. With scale, the business may explore personalized advertising as a revenue stream.

Layla believes its differentiation is presenting multiple types of content and not having a website-like structure where users must apply filters to receive search results. It uses big language models to process questions and present replies and develops its own recommendation engine. Saeed also said Layla is developing vision tech to answer questions like “show me destinations which look like Mars” or recommend surfaces based on photos or videos.

“Layla will have challenges in terms of educating customers in asking the right kind of queries so AI can give accurate answers. Plus, they will need to be the better inspiration layer in travel to differentiate from other solutions out there,” Bert Hoberman, an investor in Layla said.

Competitors are also developing AI-powered travel options. Pilot in Vancouver is creating an AI-powered vacation planner for pals to discuss ideas, while Airbnb and Brian Chesky are testing AI-powered review summaries and considering adding it to their apps’ features. Kayak and Expedia offer ChatGPT plug-ins and Matador Network's GuideGeek app displays real-time flight information. Investors have maintained that “even a small lead matters right now” for AI in travel.