Small businesses and startups often lack a dedicated travel desk, which leads executives and founders to rely on human assistants or cumbersome travel apps for their booking needs.
Michael Gulmann, former SVP of consumer product at Expedia, is revolutionizing the travel industry by introducing AI as the solution to this problem. His company, Otto, is emerging from stealth mode on Thursday and plans to launch an alpha version of the platform for select U.S. participants in September. The service is designed to streamline flight and hotel bookings through natural language queries.
Having raised $6 million in seed funding led by Madrona Ventures with the participation of Direct Travel and angel investors from top industry services, Otto is poised to invest this capital in product development and engineering talent, ensuring a runway of two years.
Unlike larger travel management companies targeting enterprises, Otto is focused on serving customers who do not have access to these services. Gulmann describes Otto as a high-end travel agent or executive assistant that remembers user preferences, such as preferred hotels and flights, eliminating the need to repeatedly enter this information.
The platform also integrates automatic updates on bookings and schedules, offering alternative options in case preferred accommodations are unavailable. In rare instances where the AI bot cannot complete a booking, it seamlessly transitions to a human agent at Direct Travel to assist.
Steve Singh, Managing Director at Madrona and interim CEO at Spotnana, believes Otto has the potential to tap into the untapped market of unmanaged business travel by providing a cost-effective alternative to traditional travel management services.
Utilizing a network of investors and advisors, Otto integrates with travel data providers to offer customized booking queries, filling the gap where traditional platforms fall short. By leveraging various sources for hotel and airline data, Otto aims to provide a highly personalized experience for users.
With plans to refine their AI models and expand user access through alpha and beta releases, Otto aims to make travel booking more efficient and tailored to individual preferences. The company’s long-term vision includes offering a fully personalized service that anticipates user needs based on historical data and preferences.
