The Collapse of the Funnel: How AI Conversations Now Lead to Agentic Commerce in Tourism

I recently sat down with Mike Bayly, founder of The AI Corner and Managing Partner at Allexive, for a conversation that every tourism and hospitality business needs to hear. What we covered affects bookings, visibility, customer behaviour and how people will discover experiences in the future.

AI is not just changing how people plan their travel, it is changing where they plan their travel. And that shift is happening far faster than most people realise.

So here is a rundown of what we discussed and why it matters for your business right now.

AI Is Collapsing the Traditional Sales Funnel

For years we have all worked within the same predictable online journey.
Awareness, interest, research, comparison, booking.

But that multi step path is disappearing.

Travelers are now asking micro questions directly to AI tools like ChatGPT, Gemini and Perplexity and getting personalised recommendations instantly. That means they are no longer visiting multiple websites, opening 12 tabs or scrolling through pages of search results.

The entire discovery and booking journey is compressing into a single conversation.

Customers Are Moving From Search to Chat

Instead of typing vague Google searches, people are now asking AI tools very specific, personalised questions.

Example micro question:
“Find me free activities in Queenstown for kids under 5 on a rainy day.”

That level of detail is something search engines have never handled well, but AI tools thrive on it.

So as customers switch to micro questions, businesses need to adapt the way they present information online. If you are not providing hyper specific details in a structured, machine readable way, AI tools simply cannot surface you as an option.

Agent Browsers Are Changing How Bookings Happen

One of the most powerful shifts Mike highlighted is the rise of agent browsers.
This is where the browser becomes your assistant.

Instead of manually researching, comparing and booking, customers will be able to say:

“Book me two nights in Queenstown next April under 600 dollars with lake views and late checkout.”

The browser then does the searching, comparing and booking for them.

And here is the big change: your main customer in the future will be an AI agent, not a human.

That means your website must be readable by agents, not just attractive to humans.

Will We Still Need Websites?

In short, yes.
But the role of a website is shifting.

Websites are becoming the data layer that feeds AI tools, not the place where most discovery happens.

That means your content must be:
• specific
• structured
• factual
• free of fluffy marketing language
• designed so an agent can understand what you offer instantly

This is a totally different way of thinking about online presence.

The Metrics Are Changing Too

Clicks, impressions and sessions are no longer the full story.
AI driven discovery needs new metrics, such as:

• agent queries
• selection rate
• citation volume
• API success
• agent abandonment instead of cart abandonment

It is a different world and we need to start measuring what truly reflects visibility in AI search.

Why Top Down AI Adoption Matters

We also spoke about how teams should approach AI internally.

Bottom up adoption creates small efficiency wins, which is great, but will not create real ROI.
Top down adoption creates strategy, momentum and cultural alignment.

Leadership needs to drive:
• the vision
• the priorities
• the training
• the safe use guidelines
• the long term direction

Without leadership buy in, teams lack clarity and everything becomes scattered.

Tourism Businesses Need To Act Now

International visitors are already using AI tools heavily for travel planning. Some markets are adopting conversational planning at high speed.

If those customers cannot find you, your competitors will benefit from their absence.

This shift is not five years away.
It is happening now.

The businesses that move earliest will enjoy a genuine competitive advantage. The ones who wait risk becoming invisible.

My Conversation With Mike Bayly

Mike is doing incredible work spotlighting New Zealand’s AI leaders, trends and opportunities through The AI Corner. His perspective on agentic commerce, tourism and the future of search was refreshing, grounded and very aligned with the direction I have been teaching inside the AI Marketing Club.

If you want to listen to the full conversation, watch the video above.

Connect With Mike

Allexive
https://allexive.com/ 

The AI Corner
https://theaicorner.co.nz/ 

LinkedIn
https://www.linkedin.com/in/mikebayly/ 

Mike’s Upcoming Course

He is running a two session practical AI course for people wanting to go beyond basic tools and get hands on:
https://theaicorner.co.nz/p/ai-privacy-aws-lag-our-new-ai-course-save-a-spot