The Connected Trip, AI and Financial Readiness for Travel Agents

Connected Trips, AI, and Financial Readiness for Travel Agents

At Antravia, we work with travel businesses that want to grow, and right now, there’s a lot of "buzz" around generative AI, and yes, it is starting to reshape how travelers book and plan their trips. A global study by Accenture found that 80% of travelers are already using tools like ChatGPT to get ideas, compare options, and even build itineraries.

But let’s be sensible: for most travel companies(and especially smaller agencies, boutique hotels, and tour operators) AI isn’t the first thing keeping you up at night. What’s keeping you up is the back-end chaos: manual work, missed commissions, untracked FX losses, tax complexity, and the fact that nothing seems to talk to each other.

1. What is a “Connected Trip”?

In travel tech, a Connected Trip (sometimes known as "bundles") combined flights, hotels, transfers, and activities into one seamless itinerary, adjusting dynamically to delays, weather changes, or traveler preferences. Think of it as having an itinerary that “just knows” what to do next.

There are two versions:

• Loosely Coupled: Multiple bookings linked through intelligent systems (e.g., Booking.com).

• Packaged: One operator bundles everything end-to-end and assumes full responsibility.
  
  

Booking Holdings—which underpins Booking.com, Priceline, Agoda KAYAK, and others, sees the Connected Trip as the future. Their CEO envisions generative AI personalizing everything from flight rebooking to dynamic service offers.

2. How AI Powers the Travel Evolution

AI seems to in everyone's mind at the moment, and for some, it is already core of modern travel.

• Increased Adoption: Generative AI use in trip planning doubled between 2023 and 2024 (References below)

• Efficiency Gains: Advisors like Athena Livadas (Páme Travel) report 40% business growth after adopting AI—freeing up hours for client outreach and creative thinking.

• Agentic AI Takes Over: This newer form of AI acts autonomously - rebooking flights during delays, recalculating itineraries, and even handling upgrades, without a human flip of a switch.
  
  

So where do humans comes in? At Antravia, we think the humans bring something that AI will never have.. It brings personal touch, finesse, and well.. treating the client like another human.. For example, AI might suggest Tokyo, Kyoto, Osaka. But an advisor who knows you surf? That advisor drops Kamakura into your journey... and reserves your board. A Travel Agent knows you.. Are we sure AI is there yet?

3. But what does this mean for your Finances, and why does it matter?

A. Costs and Cash Flow

• Investment in Tools:
  Agentic AI platforms and integrated booking systems don’t come cheap. Subscription-based models range from a few hundred dollars per month for small agencies to enterprise-scale investments of $50,000+ annually for platforms that integrate booking, CRM, and AI-powered trip management (Phocuswright, 2024). These systems often require staff training, migration costs, and IT support. Without planning, agencies can overspend on licenses they don’t fully use.
  
  

• Dynamic Pricing:
  AI pricing engines, already common in airlines and hotels, are now filtering into mid-sized operators. STR reported in 2024 that hotels using automated revenue management tools achieved 8–12% higher RevPAR (Revenue per Available Room) compared to manual pricing. For agents selling packages, this means higher commission potential but also cash flow volatility. Clients may book at fluctuating prices, creating reconciliation challenges when supplier rates shift in real time.
  
  

• Cash Flow Strain:
  Dynamic systems can increase upfront costs. For example, if a wholesaler demands prepayment while pricing is variable, agencies may face mismatches between what’s collected from clients and what’s owed to suppliers. Poorly timed settlements risk liquidity crunches. A strong working capital forecast, stress-tested against pricing volatility, is essential.
  

B. Accounting Readiness

• Tracking Complexity:
  With bundled services, a single client booking can involve 10+ suppliers, such as airline, hotel, transfer, activities, insurance, processed across multiple systems. Accounting software must capture gross value, supplier costs, and net commission, while also handling partial refunds or AI-triggered changes. If not mapped correctly, this creates reconciliation gaps, unclaimed supplier credits, or misstated revenue.
  
  

• Revenue Recognition Shifts: Under U.S. GAAP and IFRS 15, packaging a trip as a single product changes when and how revenue is recognized. For example:

  If the agent is the principal (Merchant of Record), revenue is recognized on the full trip value.

  If the agent is the agent (commission-only), revenue is recognized net.

  AI-driven bundling makes these distinctions blurrier. Incorrect recognition risks misstating both revenue and tax liabilities.
  
  

• Audit Trail:
  AI automation means bookings change frequently. Without a clear audit trail, such as timestamps, system logs, supplier confirmations, disputes are harder to resolve. This increases exposure to client claims or supplier chargebacks.
  

C. Competitive Advantage

• Operational Efficiency
  McKinsey’s 2023 study on generative AI in services estimated a 20–30% reduction in time spent on repetitive tasks. For agents, this could translates into:
  - Itinerary formatting done in seconds.
  - Automatic rebooking during delays.
  - AI-generated client communications.
  
  

• Strategic Capacity
  By freeing back-office hours, AI gives advisors could have more time for high-value work:

  Financial planning: scenario modeling for margins under different commission structures.

  Marketing: building niche campaigns that AI cannot replicate (luxury, wellness, high-touch travel).

  Client Retention: focusing on long-term, recurring contracts instead of one-off bookings.

  
  

• Margin Protection in Tight Markets
  With commissions often squeezed to 8–12%, every percentage point matters. Agencies adopting AI early gain the ability to scale client servicing without proportionate staff increases, preserving margins in a way that late adopters cannot.
  

Support agents outperform AI when human connection matters. A Times experiment showed ChatGPT could help with visa details, but dialing for bookings or multiparty tours? Still better with a human. And in travel, 38% still use a real agent for higher-value, complex bookings.

4. What you can do in AI today

1. Audit Your Systems
   Ensure your booking and accounting software supports dynamic bundles and recognizes AI-triggered changes.
   

2. Track AI-Driven Revenue Separately
   Clear mapping helps with forecasting, client reporting, and future-proof financial planning.
   

3. Emphasize Your Human Touch
   Market your ability to personalize beyond AI, with relationships, perks, and narrative. AI helps you serve more people, not replace your voice.
   

4. Educate Your Team or Clients
   Provide clear comparisons: “This platform saves you hours—but here’s why choosing X package over Y matters financially.”
   
   

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How Antravia Can Help

We’re not here to sell you software. We’re here to help you stop losing money, wasting time, or missing growth because of bad finance infrastructure.

Whether you’re a travel agent dealing with U.S. tax for the first time, a hotel frustrated by FX fees, or a growing business trying to modernize how you operate—we bring practical advice and real-world solutions.

And yes, if AI tools make sense in the process, we’ll help you understand how to use them. But always in the context of your business goals, not just because it’s the latest thing.

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Final Thought

The future of travel is more connected and more automated, but that only works if your business is ready for it.

Antravia works with travel agents and hotels to translate new technology into clear financial processes. Our goal is not to hype innovation, but to ensure your systems, reporting, and margins keep pace with the industry’s next phase.

References

1. The Times – “I asked an AI chatbot to book me a holiday. Here’s what happened”:
   https://www.thetimes.co.uk/article/ai-chatbot-holiday-booking-company-chatgpt-b5sqbn5xh

2. Nezasa – “The Two Types of Connected Trip”:
   https://nezasa.com/blog/two-types-connected-trip/

3. TIME – “Booking.com CEO Glenn Fogel on AI and the Future of Travel”:
   https://time.com/7284698/booking-ceo-glenn-fogel-interview/

4. Business Insider – “Travel agents are using AI to plan trips. One says it helped grow her business by 40%”:
   https://www.businessinsider.com/ai-travel-agents-trip-planning-agency-business-growth-2025-8

5. Tredence – “Agentic AI in Travel and Hospitality”:
   https://www.tredence.com/blog/agentic-ai-travel-hospitality

6. DataArt – “Travel Agents Are Finally Ready to Scale Personalized Service”:
   https://www.dataart.com/blog/travel-agents-are-finally-ready-to-scale-personalized-service