A new Seattle-based startup called Otto is developing an AI-powered virtual assistant for business travel booking. Led by CEO Michael Gulmann, who previously worked at Expedia Group and Egencia, the company announced a $6 million seed round led by Madrona. The idea behind Otto is to use large language models such as OpenAI’s GPT-4 to help business travelers quickly book flights and hotels using a conversational chatbot that learns personal preferences and filters through options based on a user’s calendar and other parameters. The virtual assistant is designed to be used both before and during a trip, completing payments on behalf of the user.
Otto is targeting business travelers who book their own travel and do not utilize services provided by large corporate travel agencies. The company plans to offer its product for free and generate revenue through a revenue-sharing model for facilitating bookings. In the future, they may consider charging users for advanced features. The virtual assistant does not have access to personal information or payment details, and the company may have humans verify transactions. Otto was incubated at Seattle-based Madrona Venture Labs and spun out earlier this year. Backers include prominent figures in the travel industry such as former CEOs of Expedia and Orbitz, as well as a corporate travel management company.
Otto aims to leverage AI technology to enhance the travel booking experience by using generative AI and other automation tools to streamline the process. Similar AI-booking tools have been introduced by companies such as Expedia and a German startup called Swifty. When it comes to AI in travel, Otto is looking to fundamentally alter the industry with a novel experience that employs natural language understanding capabilities, travel API capabilities, and the increasing consumer adoption of AI. The company plans to partner with Spotnana to provide real-time airfare data for their AI model and utilize open platforms offered by companies associated with Madrona Venture Labs.
Steve Singh, managing director at Madrona and executive chairman at Otto, has taken on various leadership roles in the travel industry since departing from Concur, a business expense software giant he co-founded. He is also involved in other travel-related startups such as Spotnana, Center, and Troop. With significant advancements in AI capabilities and growing consumer adoption of AI, Otto is poised to deliver value across the travel industry through features like predictive servicing and personalized recommendations based on past behaviors. Singh believes that Otto’s AI capabilities are at the forefront of what is possible in the travel industry.
