Worldwide: Allen Boening, co-founder and CEO of home exchange marketplace Swapdesk, explores how artificial intelligence [AI] and automation will change how people find accommodation, the problems with search and filter user interface, and why it works for platforms such as Airbnb but not in the home exchange industry.
In today’s world of app overload and information abundance, the task of planning travel can be overwhelming. Consumers often find themselves grappling with multiple facets of travel, from flights to accommodation to discovering exciting activities to do at their destination.
Sure, smart aggregators have emerged, but who knows if they are really offering the best value for money? Consumers use these platforms as part of the research process, but they are often not where people book. The silver lining in this complexity is the integration of artificial intelligence [AI], poised to revolutionise the travel industry by rendering the entire process more seamless and personalised than ever before.
Accommodation accounts for a significant portion of any traveller’s budget and also carries the largest variation of options when it comes to the experience [as compared to flights for example]. It’s fair to assume that some of the greatest gains for consumers will come from what AI can do to impact affordability and the ease of booking a great stay. Today, travellers navigate various websites, sifting through listings and using advanced filters to secure the perfect stay. This often demands substantial time and effort, with users revisiting multiple websites before committing to a booking decision.
So let’s quickly explore what’s currently available, what consumers are already exploring as alternatives – and finally some early examples of what we have to look forward to as it pertains to the impact of AI on booking accommodation.
Currently, consumers are still flocking to marketplaces like Airbnb. But, even with its vast supply and popular user interface, Airbnb recognises that the journey from enquiry to conversion can be protracted. The challenges of cost and finding the ideal stay contribute to the intricacies of this process.
As a thought experiment, think about a scenario where all listings were free to book – it’s fair to assume that consumers would book as soon as they found something they liked. The reality is that it often takes weeks of consideration before consumers book their stay – and they often carry a big cost. In fact, it’s the high cost of accommodation and the overwhelming number of options that lead to this becoming a big protracted consideration resulting in decision paralysis.
Take Amsterdam or London for example, where one night on average can cost more than $230; a two-week stay would cost consumers $3,220. So, we have a lot of property supply in the market, but at what cost?
One solution to the cost problem is swapping your home with another person – think back to The Holiday with Cameron Diaz and Kate Winslet. While platforms such as HomeExchange have grown in popularity, users often encounter difficulties in matching preferences and arranging successful swaps due to the bartering nature of the home exchange model. So while one platform solves the affordability problem, the other solves the ease of booking problem with vast supply – doing both has proved difficult. Unfortunately, many consumers who try home exchanges revert to traditional pay-to-play platforms like Airbnb or Booking.com to finalise their travel arrangements due to the difficulty in finding a match.
Enter the new era of AI-driven travel assistance platforms. Swapdesk is a startup, seeking to redefine the home-swapping experience – striking a balance of quality, ease of booking, and cost-effectiveness. The home exchange platform is being used by remote and hybrid workers at over 270 companies. Users from different companies swap homes with each other while they work remotely, and save thousands on accommodation. Swapdesk users are largely tech workers, with high incomes and living in capital cities. They have little patience for a high-effort experience of messaging members only to be met with rejection. This pressure of impatience has pushed Swapdesk to build what it calls Concierge AI, which provides users with a virtual travel agent that streamlines the entire matchmaking and booking process on the platform.
Swapdesk’s Concierge AI utilises advanced algorithms to match users efficiently. By understanding user preferences, ideal trip durations, and flexibility – the AI-driven platform significantly increases the chances of successful home swaps. Early experiments have demonstrated a 90 per cent success rate in helping users find a home swap, with very little effort.
Imagine being able to tell a platform that you want to travel anywhere in Southern Europe, for two weeks in February, with contextual details about your trip, and then you just kick back and wait. The agent goes out hunting on your behalf for the perfect home to swap and the perfect match. It reaches out to other users on your behalf in natural language and gauges their interest. Only when it has identified mutual interest with a member who matches your criteria will it return to you with a suggested time to meet them. Not only is this effortless for you, but it also ends with a small curated list of options that’s tailored and isn’t overwhelming. Users meet over a video call to finalise details, and to get to know each other before swapping homes. It’s the convergence of man and machine that makes this experience low effort and high trust.
A distinctive advantage of smaller, newer platforms like Swapdesk lies in their ability to build on modern tech from the ground up. This ensures not only a more efficient and user-friendly interface but also enables these startups to conduct experiments and pilot innovative approaches more easily. With every new property, Concierge AI grows more powerful and better serves all of its members.
What is particularly intriguing about Swapdesk’s approach is the seamless integration of language models [LLMs], automation, and a human touch. This trifecta holds the promise of creating genuine personalisation and efficiency in ways consumers have yet to fully grasp. With enough properties, and trust between members – why would anyone use a traditional platform that requires them to do more work and pay five to ten times more for their stay?
If you are interested in trying out this new wave of technology for yourself, Swapdesk continues to welcome new members to its community of home-swapping professionals. Users can join for free here – and you only need a home, company email address, and a LinkedIn profile.
Boening joined a recent Pitch to Paul Dragon’s Den- / Shark Tank-style webinar to pitch for potential investment – watch the recording back now at this link.
