Otto, an AI travel assistant-providing company located in Seattle has recently closed its seed funding round with $6 million. Partners and angel investors involved in this funding round include Direct Travel and several other investors from the travel industry among the former CEO of Expedia, Erik Blachford, former CEO of Orbitz, Barney Harford, and Hugh Crean, the Operix CEO. The new funds will be utilized to strengthen Otto’s artificial intelligence features, grow its business, and extend its outreach.
Vision and Mission of Otto
Launched by Michael Gulmann, Otto is an end-to-end travel agency that uses artificial intelligence to provide business travelers with an enhanced experience. The startup is an AI-based travel companion that helps with planning, booking, and assistance needed during the trip. Closely connected with Otto, its platform adapts to the users’ preferences, including preferred airlines, certain flights, and recommended hotels.
Otto’s vision is to build an artificial, self-sufficient persona that can undertake all related responsibilities of traveling. Otto Looking to Narrow the Gap between Technology and Personalization Through the Incorporation of Advanced AI Models and Methods. It is meant for unmanaged business leisure travelers who do not have an arranged corporate travel solution partner, giving them an intelligent and efficient travel companion.
Image Source: Otto
Seed Funding and Market
The $6 million seed round with the participation of Madrona Ventures can be considered a major achievement for Otto. Technology and innovation-focused investment firm, Madrona Ventures, has placed its trust and faith in Otto and its management. The idea behind Otto was brought forward by Steve Singh, the founder of SAP Concur and the managing director at Madrona. Singh will also act as the Executive Chairman of Otto.
Currently, the travel industry is on the right soil waiting for someone to start seeding this soil so that there will be increased innovation that will lead to the development of different tools that could in the forthcoming years especially the post- Covid 19world which is characterized by increased travel convenience of course with the help of enhanced travel tools that will ease the process of travel. As such, Otto’s AI-powered assistant is incredibly timely in meeting this demand while presenting consumers with a product that is innovative and oriented toward the end user. The industry seems to have welcomed Otto’s decision, hoping the move may establish a new trend in travel assistance.
Key Features of Otto’s AI Travel Assistant
Otto’s AI assistant empowers travelers by adopting their strategies and aims to create the best usage plan. This includes preferred airlines, flights, and preferred accommodation. It involves using natural language to search for flights and hotel bookings and as such, the process is easy. In the event of changes in trip plans such as flight changes, Otto offers immediate assistance to the traveler. Otto specializes and interacts with major service providers in the travel industry offering the ability to put together all travel plans. It provides online support for clients who may have a problem or concern while on the road.
Strategic Prospects
The funding will allow Otto to further the development of its AI travel companion designed to make business travel easier. Otto works together with important partners present in the business travel ecosystem, such as Spotnana and Direct Travel, for a more fluid travel experience. The resulting AI-driven platform is expected to answer common questions about the destination, offer relevant recommendations based on the traveler’s behavior, constantly track and manage the itinerary, and, if needed, proactively communicate with the traveler through live chat.
With the new funding, Otto is planning to scale up the company’s operations and improve the application of artificial intelligence algorithms. The firm is particularly keen on launching the novel solution into the market faster so that it can change the travel planning process and offer a better experience to customers. Investors are especially interested in Otto’s ability to revolutionize the travel market for business travelers and simplify travel arrangements for them.
Conclusion
The $6 million seed funding round is just the start of ride in the travel tech sector for Otto. By partnering with Madrona Ventures and other innovative counterparts, Otto comes as a futuristic solution for business travel. Thus, while the company is working on enhancing its AI-based travel assistant, it will be able to provide customers with new and improved travel assistance, making the solution unique and focused on the user experience.
