Ixigo expertise chief on AI, ChatGPT and their potential

Indian on-line journey company Ixigo has been on an attention-grabbing journey for the previous decade, evolving from its roots as a metasearch to on-line journey company. 

It started by fixing friction for prepare vacationers in India however has developed and grown by a string of acquisitions and investments alongside the way in which, including expertise and stock.

It was additionally an early mover when it got here to experimenting with synthetic intelligence.

In an interview with PhocusWire, Rajnish Kumar, co-founder and group chief product and expertise officer, spoke of the corporate’s early AI developments, the potential use circumstances for ChatGPT and present challenges.

Inform us concerning the significance of information, what you’re amassing and the way you’re utilizing in a significant approach?

It’s vital to grasp the background for why it has turn into so vital for us. Once we began, we had a really completely different strategy in comparison with most different on-line journey companies (OTAs). The strategy of many of the OTAs has been to construct a enterprise on high of transactions. You begin by constructing a enterprise the place you say, “I will promote some tickets and make some cash.” That’s the preliminary worth proposition. 

Our strategy was extra akin to the strategy of a Google, a Fb or WhatsApp. It is extra of a utilitarian strategy. We began by saying that we had been going to unravel a few of the core issues individuals have. We would not earn a living on that, we would not promote tickets to begin with. That basically began the entire journey. 

The preliminary strategy was that we turned a metasearch, which was fairly a pure match for our mindset. We did not wish to get into something operationally heavy. Metasearch as a enterprise was lending itself properly to that, and the truth that India as a market may be very value delicate, it was good timing for us.

Then we recognized a really giant underserved market, which was the underside of the pyramid in India. Folks had been touring in trains, they usually had a number of points which had been unsolved. I feel, on the core, Indian Railway Catering and Tourism Company (IRCTC) was solely engaged in offering a ticketing platform, however the whole lot else was not solved for.

For instance, the traditional use case we began off with was checking passenger title document (PNR) standing. Thirty % of tickets are wait-listed in India. If you e-book a prepare ticket it is a very painful journey for purchasers to maintain checking their PNRs now and again, as much as very near the day of departure. They should see it’s confirmed, as a result of if not, you wish to cancel it in time so you do not lose some huge cash.

This course of was painful, so primarily we created an app which might create [Short Message Service texts] coming from IRCTC and even airways and OTAs, and there could be journey info in these SMSs. It’s like TripIt for SMS as a result of in India virtually the whole lot goes in SMS and now WhatsApp, not electronic mail.

So we decide that up and work it into a visit so individuals haven’t got to recollect their 10 digit PNR quantity and go to a web site to punch it in. We test that routinely, and as quickly as your ticket will get confirmed or your waitlist strikes we ship a notification. That turns into extraordinarily preemptive, and that is the key story of how our preliminary development hack labored. Due to that, individuals began sharing the app like loopy.

With this development, information got here to us. We received loads of information about clients checking PNR standing and the way their PNR standing was altering in actual time. That information was helpful to us as a result of we dealt with a number of information, and we then constructed our first synthetic intelligence utility on high of that round 2014-15. We began predicting PNR standing, which signifies that if you happen to test your PNR, or if you happen to the test availability of a prepare earlier than shopping for, we are able to inform you whether or not this ticket will get confirmed. That turned one of many greatest options that turned viral.

All of the OTAs at the moment are speaking about cell and the alternatives going ahead. As somebody who has been coping with cell for a very long time, how do you see it being utilized in methods not presently getting used?

Within the early days, lots of people figured [mobile] was solely a platform for seems to be and never bookings. In India, that modifications fully as a result of a really small proportion of individuals have laptops. The whole lot they do occurs on a cell, so we leapfrogged in comparison with Europe and the U.S. What’s altering now could be that cell is ubiquitous, and the whole lot is occurring on cell. Increasingly what we’ll see is that even in the course of the journey, individuals will want help, and it could possibly be a variety of issues, corresponding to what to do in a metropolis, what to do round a sure space and even international change.

Final yr there was loads of speak about metaverse and NFTs. Do you continue to see potential for them in journey? 

Personally, I might not wager actually massive on them. For the straightforward cause that if I’ve to place my effort into one thing, I might reasonably put it on ChatGPT or the massive language fashions. That is an space that’s extraordinarily highly effective and may be tapped in to, and there is sufficient to be finished there.

You have got been utilizing AI to your app to assist clear up friction factors for purchasers. The place do you see generative AI becoming finest into journey?

We began with principally predictive expertise just like the PNR standing, and we even constructed a visit planner round 2012-13. It was based mostly on historic AI fashions utilized by us to create a pure language understanding engine, and we had been capable of present you precisely the content material you had been searching for. 

In hindsight, it seems to be as if ChatGPT is doing one thing very related. We constructed that factor, and it seems to be like at present it is very related, as a result of I do not assume individuals had been anticipating this to be as highly effective by way of the flexibility to grasp what any person is attempting to say. What we constructed had a number of limitations as a result of it was not possible to have a pure language understanding engine which has the capabilities of a giant language mannequin at present.

So we didn’t concentrate on that and began focusing as a substitute on the place AI was sufficiently superior to offer extra correct outcomes, and that was predictive applied sciences. So our preliminary part of evolution was the place we constructed options to assist clients, predicting PNR standing and predicting prepare delays. 

In India trains are usually not normally on time. Due to the dimensions, we reached some extent the place we found out that we might construct one thing like a Waze or Google Maps through the use of the placement of the units contained in the trains to pinpoint the placement of the prepare, which was one of many greatest ache factors for purchasers. That was not the one downside. As soon as you can find a prepare, you additionally have to know what occurs to it as soon as it will get to the ultimate vacation spot. If a prepare is working an hour late at one station, you want to know if it would catch up or get delayed additional, so we constructed predictive expertise for that.

You have got these predictive AI fashions. How does ChatGPT or generative AI take issues to the following stage?

The following stage of the evolution was to begin utilizing these predictive fashions for monetization, for instance, Ixigo Flex and Ixigo Assured. 

Initially we used to foretell airfares by telling clients to not e-book as a result of the worth was going to go down. You are able to do that or you possibly can underwrite that by promoting a prize freeze. We take a look at the cancellation habits of consumers, airways, date of departure and plenty of elements and the shopper’s personal historic information to determine how a lot premium we must always cost to underwrite cancellation. All of that’s at present powered by AI. 

So the place does generative AI comes into the image? We began constructing a chatbot round 2015-16. We realized we might evolve that expertise right into a buyer help chatbot as a result of as a enterprise we had been transitioning from a metasearch mannequin to a completely transactional mannequin. Doing that had a value, and the price was buyer help, so we had to ensure we had one thing that may create that working leverage for us, which is why we transitioned that bot to a customer support bot. 

Once we began utilizing generative AI, I feel we received entry in 2020 to GPT-3, we began utilizing it for preliminary use circumstances principally contained in the group. We by no means changed our chatbot with that as a result of it was not correct.


The power to mash ChatGPT up with the real-time APIs you’ve is the place the plugin structure is gorgeous which is what I feel journey firms can leverage very well.

Rajnish Kumar, Ixigo

The whole lot modified in 2022 when model 3.5 got here, and we began taking part in with that, we realized it was far more highly effective than three and that’s once we began transitioning our chatbot. We began fine-tuning it with 10 years of information, which resulted in a major bump in accuracy and dealing with charges. We’ve been capable of attain some extent the place we’re getting nearer and nearer to 90% dealing with charges over the chatbot. That is a giant enchancment as a result of shifting from 85 to 90 with this expertise requires monumental quantities of information to coach the fashions.

For the journey business usually, what’s the best problem in utilizing ChatGPT or related expertise?

One of many points with ChatGPT is that it is kind of static in nature. The quantity of information it has is as much as 2021 and the whole lot is pre-trained on that information. The power to mash that up with the real-time [application programming interfaces] you’ve is the place the plug-in structure is gorgeous, which is what I feel journey firms can leverage very well: if you happen to mix the ability of ChatGPT with real-time APIs that you’ve on flight standing or extra correct real-time information on vacation spot content material or locations of curiosity. You would possibly ask for that information from ChatGPT, however that information is 2021 so take, for instance, the perfect locations to eat, perhaps that place has shut down or the rankings are usually not right or perhaps it does not know the perfect eating places which have come up since.

So the problem is that it is the information pre-2021, however there’s a possibility for journey firms to mix it with real-time APIs?

That is what we have been engaged on over the previous few months. It is one thing we’ll be showcasing very quickly: the ability of this tech when mixed with real-time information and APIs that we now have constructed over the previous decade. The facility of that’s limitless … The trick in most of those circumstances is what you need ChatGPT to offer you completely is dependent upon immediate engineering. It’s the way you prepare it to provide the consequence you need.

What are your present growth priorities for Ixigo merchandise?

We spent the previous decade fixing core buyer ache areas, and because of this we now have grown exponentially. We have reached some extent the place we now have 60 million month-to-month lively customers (MAUs) and many of the downloads are natural. So for the previous few years our focus has been on monetization, and we produced all kinds of reserving funnels and transaction funnels and ultimately added the embedded finance merchandise to increase our margins. We’re now seeing that working leverage taking part in out and our EBITDA margins increasing considerably. The aim for us now as a enterprise is the immense potential we nonetheless see to monetize the shopper base.

Will you monetize in an analogous approach or do you’ve new plans?

We by no means had earlier than the sort of intelligence that might perceive buyer habits after which promote them the correct product. If you understand that any person has a wait-listed ticket and that ticket will not be going to verify, which is a fairly practical state of affairs, then there may be the chance to cross-sell a bus ticket or upsell a flight ticket if the journey is just too lengthy. That is the sort of intelligence that we now have been engaged on to scale the monetization and the cross-sell potential and new traces of product. It could be lame to be sitting on 60 million month-to-month lively customers and never have your individual lodges product. It could be like leaving cash on the desk. So we’ll have the complete breadth of journey product, however extra importantly we’ll have the intelligence to grasp buyer habits after which use personalization and suggestion to promote the proper issues to individuals. That potential is basically excessive.

The journey business has talked about personalization for a very long time. What does it imply to you and the way can we obtain it?

That was the imaginative and prescient we introduced at The Phocuswright Convention with the journey planner again in 2017. The thought was to create this digital concierge who would know the whole lot about you, all of your ideas, the whole lot up to now and all the time be there for you. I see that that imaginative and prescient may be achieved now with this expertise. It’s simply getting nearer and nearer.

Can we borrow from different industries in relation to the shopper expertise?

I feel journey is by far the worst in relation to the shopper expertise. What Amazon was doing 20 years in the past journey continues to be scuffling with now. That means to place 5 merchandise in a purchasing cart, take a look at and get them delivered or, if you wish to give them again, you can provide them again. In journey that isn’t trivial. It is due to how this entire ecosystem was constructed, it’s important to do the whole lot in a sure approach, which is strictly the explanation why we constructed Assured and Flex. I’d reasonably underwrite that with AI and provides clients the expertise they deserve.

Different examples are industries that are powered by pure play expertise just like the media and music industries.

If you get up within the morning, what do you assume your best challenges are? 

The best challenges are additionally the explanation why I get up within the morning excited. I do know there are issues I can clear up at present, and I can see actual impression by way of the person expertise and margins in our enterprise. That offers you a kick. Within the current previous the largest problem we now have all been going through, and nonetheless are, is the right way to steadiness the sort of work you want to do to make things better and take care of legacy points with ensuring you are additionally capable of develop the enterprise.

What has modified now could be that whereas hiring the correct individuals will all the time be an issue, 10 engineers is now like 100 engineers with ChatGPT or Copilot. What you can obtain up to now with 100 individuals you possibly can obtain now with the correct 10 to fifteen. 

The price of constructing software program was straight proportional to the price of engineers, and the price of engineers has been going up exponentially up to now couple of many years. With this expertise inflection there’s going to be a flip aspect drop in the price of constructing software program. Software program may be constructed very simply, which implies any enterprise which doesn’t have a transparent bodily mode is ripe for disruption. So my greatest problem is how will we construct conventional modes in our enterprise to ensure we’re in a position to make use of this expertise to create disruption and never get disrupted.

Phocuswright Europe 2023

Generative AI is about to revolutionize journey. Leaders from Journey.com, Microsoft and Kayak inform us how the expertise will change the whole lot from the again of the home to the entrance.

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