Navigating the Evolving Tourism Landscape: Examining the Challenges and Opportunities for TripAdvisor and Travelocity in the Era of AI:A Comparative Analysis of Innovation Strategies

Abstract

The tourism industry has undergone exponential transformation, reshaped by online travel agencies (OTAs), shifting consumer preferences, and technological advancements. Established OTAs like TripAdvisor and Travelocity face pressures to adapt their strategies to capitalize on these disruptive landscape changes. This research involves a comparative analysis examining the key challenges confronting TripAdvisor and Travelocity, with a focus on opportunities to leverage artificial intelligence (AI) in enhancing personalization and the traveler experience. The study utilizes publicly available data on the companies and academic literature on AI innovation diffusion. Findings reveal that while TripAdvisor has actively developed AI-based trip planning tools, Travelocity has limited autonomy to implement emerging technologies due to its subsidiary status within Expedia Group. Effectively harnessing AI presents challenges including privacy risks, infrastructure constraints, and integration complexity. However, thoughtfully executed AI innovations can assist TripAdvisor and Travelocity in delivering customized experiences that uplift traveler satisfaction and retention. This underscores AI’s evolving role as a competitive resource for established OTAs disrupted by industry transformation. The study provides strategic insights into leveraging AI applications aligned with organizational capabilities and market realities, contributing implications for research and practice.