Otto is a new Seattle-based startup that is developing an AI-powered virtual assistant for business travel booking. The company recently announced a $6 million seed round led by Madrona, with Steve Singh, managing director at Madrona and co-founder of Concur, serving as executive chairman of Otto. The 7-person startup is led by CEO Michael Gulmann, who has extensive experience in the travel industry, including at Expedia Group and Egencia.
The vision for Otto is to use AI, including OpenAI’s GPT-4, to help business travelers quickly book flights and hotels through a conversational chatbot that learns personal preferences and filters options based on a user’s calendar and other parameters. The virtual assistant can not only search for lodging and airfare but also complete payments on behalf of the user, making the booking process seamless. Otto is targeting business travelers who book their own travel and do not use large corporate travel agencies.
Otto plans to offer its product for free and generate revenue through a revenue-sharing model for facilitating bookings. The company may introduce additional features in the future that could be monetized. While the bot cannot access personal information or payment details, humans may be involved in verifying transactions. The startup was incubated at Madrona Venture Labs and spun out earlier this year with backing from investors like former Expedia and Orbitz CEOs and corporate travel management company Direct Travel.
The travel industry is seeing a rise in AI-powered booking tools, with companies like Expedia and a German startup using generative AI and other automation tools to simplify travel logistics. Otto aims to fundamentally change the travel industry with its innovative AI capabilities that enhance the booking experience and anticipate traveler needs based on real-time data. The company is working with other travel technology platforms like Spotnana, Center, and Troop to leverage open platforms and real-time data to provide personalized recommendations for travelers.
Otto’s business model of offering AI-powered travel booking for free and generating revenue through facilitating bookings aligns with the trends in the industry. With an experienced team of travel industry veterans and supportive investors, Otto is well-positioned to disrupt the traditional travel booking process and provide valuable services to business travelers. As AI continues to permeate the travel industry, Otto’s technology and capabilities are at the forefront of what’s possible, setting the company up for success in a rapidly evolving market.
