Layla Leverages AI and User-Generated Content to Create an Innovative Travel Recommendation App

Many companies are exploring the potential of AI chatbots beyond ChatGPT, especially in the consumer sector. Berlin-based startup Layla is seizing this opportunity by developing an innovative chatbot, along with a mobile app, designed to suggest exciting travel destinations and assist with bookings.

Layla was co-founded by Jeremy Jauncey, the visionary behind the popular travel agency Beautiful Destinations, known for its substantial social media following, and Saad Saeed, co-founder of the grocery delivery service Flink.

In a recent conversation, Jauncey shared his insights on Layla's mission. “After a decade immersed in social media and the creator economy, we recognized a need for a fresh approach to travel discovery. We noticed that post-pandemic, many travelers rely on platforms like Instagram and TikTok for inspiration, and we wanted to harness that,” he explained.

Although Layla is officially launching its app and chatbot today, it has already garnered thousands of Instagram followers, leveraging Beautiful Destinations’ extensive network. The founders believe that engaging users through an Instagram chatbot is an effective way to introduce them to new travel experiences.

Travel enthusiasts can interact with Layla on Instagram to discuss various destinations, current weather conditions, optimal travel times, activities to enjoy, and options for flights and accommodations. The chatbot also showcases videos from creators in the Beautiful Destinations network, providing users with alternative perspectives on potential travel spots.

Saeed noted that after a few interactive conversations, users are encouraged to explore Layla’s dedicated app on Instagram. The app empowers users to create and share personalized travel lists, engage in different chat conversations with Layla, and access a visually rich display of videos, ticket prices, and hotel options.

Jauncey pointed out that travelers often visit numerous websites for advice, from inspiration to booking. Layla aims to streamline this process and make it more efficient.

Layla has partnered with Booking.com for hotel selection and Skyscanner for flight options. Currently, the startup employs a revenue-sharing model for these transactions, but as it scales, it is open to exploring additional revenue channels, including tailored advertising opportunities.

The company recently raised €3 million ($3.2 million) in seed funding, led by firstminute capital, co-founded by lastminute.com’s Brent Hoberman and M13. Notable investors include Booking.com’s co-founder Andy Phillips, Skyscanner co-founder Barry Smith, and celebrity Paris Hilton.

Layla differentiates itself by delivering diverse content without relying on a traditional website structure that requires users to apply filters for search results. While the company utilizes large language models for query processing and response generation, it has developed its own recommendation engine. Saeed mentioned that Layla is also working on vision technology to answer unique queries like “show me destinations that resemble Mars” or to provide recommendations based on photos and videos.

Hoberman, who invested in Layla, emphasized the excitement around combining AI with unique travel videos to inspire users to explore new destinations. “We believe Jeremy and Saad are the ideal team to tackle these challenges. With Beautiful Destinations’ extensive content library, Layla stands out from its competitors,” he stated.

“Layla will face challenges in teaching customers how to frame their queries effectively so AI can provide accurate responses. Additionally, it must establish itself as the go-to source for travel inspiration to distinguish itself from other offerings,” he added.

Competitors are also leveraging AI in travel solutions. Vancouver-based Pilot is developing an AI-driven travel planner for sharing trip ideas with friends. Airbnb and Brian Chesky have begun testing AI-powered review summaries and are looking to integrate this technology further. Kayak and Expedia have their own GPTs (ChatGPT plug-ins), while the travel publisher Matador Network’s GuideGeek app provides real-time flight information. However, investors maintain that even a small advantage in leveraging AI within the travel sector can be significant at this stage.