Steve Singh, along with a group of industry veterans, has launched Otto, a new AI trip planner and booking agent for business travel. The startup recently announced a $6 million seed round, with Michael Gulmann, a former executive at Expedia Group and Egencia, serving as the founder and CEO. The financing was led by Madrona Ventures, with support from Direct Travel and a group of travel industry veterans, including Singh. The angel investors include former CEOs of Expedia, Orbitz, and Farecast, companies that have made significant impacts in the travel industry.
Otto is designed to serve as a virtual travel agent for planning and booking business trips, utilizing the latest generative AI models to provide a seamless experience for users. The platform can assist with tasks such as finding hotels with specific amenities and booking restaurants, in addition to handling flight changes and other trip details. The tool aims to cater to the unmanaged sector of business travel, offering personalized service to individuals and small business employees who do not work with a contracted travel agency. The startup estimates the market size of the unmanaged sector to be worth $156 billion in the U.S.
Despite the promise of AI-powered trip planners, the technology is still evolving and faces challenges in providing a flawless user experience. Otto acknowledges these limitations and plans to spend the next several months refining the platform before launching a beta version in December. The startup has secured enough capital to sustain operations for two years, allowing them to focus on improving the platform and delivering a high-quality service to users. Singh’s long-term vision for Otto aligns with the concept of the “perfect trip,” where all stakeholders involved in a traveler’s journey have access to relevant data to enhance the overall experience.
Otto originated from a five-minute pitch during an internal meeting at Madrona Venture Labs, a venture capital firm’s incubator program. Singh and the Labs team, along with managing director Matt McIlwain, collaborated to build the product vision, customer target, and business model for Otto. The development team included industry veterans and former executives from leading travel companies, bringing a wealth of experience and expertise to the project. Gulmann, who previously worked at startups before transitioning to corporate roles, was chosen as the founder and CEO of Otto, based on his passion for leveraging AI advancements in the travel industry.
The early stages of Otto’s development are focused on addressing the imperfections of existing AI trip planners and creating a user-friendly platform that meets the needs of business travelers. The startup aims to tap into the growing unmanaged sector of the business travel market, offering cost-effective and personalized services to individuals and small businesses. With a strong team of industry veterans, experienced investors, and sufficient capital, Otto is well-positioned to make an impact in the travel industry and provide a more high-tech experience for the next generation of business travelers. Singh’s commitment to building and funding an ecosystem that enhances the travel experience reflects his long-term vision for transforming the industry through innovative technology solutions.
