Market commentary: Apr 2025
Investment performance
We are pleased with how our client investments are faring in this chaotic environment. While share prices have fallen over the last few months, strong returns from fixed interest have offset a good portion of this unrealised loss. This is diversification at work as investors move out of shares into safer investments like bonds. It’s good to see that portfolio returns for the last year have been strong although the last 6 months were negative.
Investing is forward looking and a big part of this is identifying trends. The article below is a summary of a paper illustrating how the AI mega trend is shaping the travel industry. It’s written by Magellan Global Equity Fund.
AI agents and the future of travel
The future of travel is about to be transformed by AI powered agents that will independently navigate websites, make decisions, solve problems, and adjust your travel itinerary on your behalf. This isn’t a distant dream; it’s a reality that travellers can expect over the next decade.
The breakthrough is driven by breakthroughs in advanced computer chips which power AI, and sophisticated algorithms. By mimicking human interactions, AI is becoming truly proactive and self-sufficient.
Established travel companies, agile startups and tech giants are all racing to build AI agents that could disrupt traditional travel search engines and capture significant market share.
Your AI agent will do the hard work for you
Instead of you searching for flights and accommodation, AI agents will predict your preferences, suggest destinations and secure the bookings for you. Imagine telling your AI agent you’d like to plan a European holiday. Instead of you browsing for hours, your AI agent will instantly:
Find flights that match your schedule, budget and preferred airline.
Book accommodation suited to your style.
Recommend activities based on your interests.
Adjust flights in real time if flights change or better options arise.
It’s all about data
The power of AI lies in the underlying data. Companies with access to the richest datasets can generate superior customer insights and will dominate the market. An example is Booking.com that has a massive user base and loyalty program giving them access to vast customer data and therefore advantage over competitors.
Travel (and other industries) will never be the same
Because AI agents can learn from their experiences, act autonomously and complete tasks on behalf of users they are not only rewriting the travel industry. Other possible applications extend to areas like online shopping, restaurant bookings and customer service centres. When you combine the abilities of AI agents (the ‘brain’) with advances in robotics (the physical), the potential for massive change is mind boggling.
Richard Grimes, CERTIFIED FINANCIAL PLANNER (CFPCM), Director and Financial Adviser