Have you ever imagined the future of the travel industry? Artificial intelligence in travel and hospitality industry is empowering these sectors to reimagine travel experience with long-term growth.
Throughout history, traveling has consistently been revolutionized by technological developments. From the 1950s jet engine speed increase to the 1990s dot-com boom that empowered online traveling, every decade had its own golden era of travel.
In this era, artificial intelligence (AI), including generative AI and machine learning (ML), are transforming how we plan, book, and experience travel. This wave of innovation is prompting travel companies to reinvent customer interactions, product development, and operational management.
The benefits of AI in the travel industry are exceptional and far-reaching. It has completely transformed the meaning of travel. According to reports, the AI market is expected to exceed $1.2 bn by 2026.
Are you curious to know more about the current impact of AI on travel? What are the exciting possibilities it holds for the future?
Before planning your AI vacation scroll down and explore every section of the blog to get answers to your questions.
What is Artificial Intelligence?
We all have heard that AI has changed the travel Landscape, Ok Fine. But what is AI?
AI or Artificial Intelligence means machines or computers performing tasks that usually need human engagement to be carried out. Simply put, it is intelligence that perceives, infers information, and synthesizes information that is different from that of humans.
AI has been in our ecosystem for a long time now. Moreover, with the necessary advancements in the past few years, it has become reliable enough to carry out complicated tasks with minimum to zero human assistance (can be called as AI travel agent). Businesses that deal with heavy data can rely on AI to perform various tasks, i.e. e, processing, analysis of data, and problem-solving
Similarly, AI in travel industry can streamline prices, reducing the possibility of human errors and providing tailored experiences to customers. Above all, I want to save significant money, time, and effort.
Understanding Role of AI in Travel Industry
Before delving into the role of AI in tourism industry, let's assume a scenario.
Suppose you are planning a trip to Italy in upcoming months, and AI suggests the best time to book the tickets. AI algorithms help you find the most profitable deal and provide cost predictions. Also, you are unaware of the visa rules, and your AI reminds you of that and provides you a guide on that. Moreover, your computer also suggests you the best place to get the currency exchange. At last , the AI assistant suggests you visit ancient ruins and museums or build a relaxing beach getaway for you seeking sun and solitude.
Will it make your journey simple and reduce your burden? I believe your answer is YES.
The scenario we discussed is one of the minor assistance that AI can give us. You can feel the impact of AI throughout the travel journey, i.e., from initial planning to the in-destination experience.
If we talk about travelers, artificial intelligence in travel and hospitality industry provides them with a more personalized touch. AI algorithms analyze past behavior and preferences to recommend destinations, flights, hotels, and activities that perfectly blend individual interests. AI in tourism also has the capability to optimize the travel process itself. Chatbots are deployed for 24/7 customer service, answering customer queries and troubleshooting issues.
For Business and Government, an AI integrated facial recognition system streamlines airport security, and AI-powered luggage tracking offers peace of mind. Beyond efficiency, AI creates a richer travel experience. AI travel agents can use real-time translation tools to break down language barriers, while AI-powered augmented reality apps overlay historical details and cultural insights onto your surroundings.
Examples of AI in Travel Industry
Here in this section, we will explore 10 examples showing how AI is redefining travel planning, enhancing in-destination experiences, and making travel more personalized, efficient, and stress-free.
1. AI for recommendations
Chatgbt and other tools have opened a new era of AI utility and changed the traditional way of getting information. This also significantly changed the travel industry as it is one of the biggest advertising verticals on the web. Machine learning algorithms can be deployed to continuously track user activities and provide tailored suggestions accordingly.
As per the report of McKinsey & Company, around 71% of the customers expect a personalized approach, while 76% get frustrated if they don't get it. Avoiding personalization can be a burden for the growth of business.
2. Sentiment Analysis
Every internet user has a unique online make. We upload images, share impressions, repost content, comment on other posts, and many more. We do such things every day, and technologies are quite aware of our actions. Businesses can get an overview of what people think about their services through machine learning and natural language processing (NLP). In simple words, they can analyze customer's sentiments from any online resource.
Now, just image to track all this manually? Is it possible? If yes, how much effort and time will it take?
3. Flight Forecasting
Flight forecasting acts as a compass for the travel business. Businesses can make informed decisions by predicting future flight trends that benefit both their customers and bottom lines. These forecasts enable them to optimize pricing by anticipating peak and low demand periods, ensuring competitive ticket prices. Moreover, it helps businesses streamline operations by forecasting staffing needs and resource allocation based on expected passenger volume. With flight forecasting, travel companies can tailor offers and packages for their customers, which not only boosts sales but also increases customer satisfaction.
4. Facial recognition
It is another popular application of AI in travel sector. This technology identifies a person by comparing the facial features with the images in the database. However, this use case is already deployed at train stations, hotels, airports, and many other places, enabling travelers with easy access to these facilities. There is a possibility that there will be a higher level of security for particular personnel and businesses in the future.
As per the U.S CBP, manual facial verification takes 20-30 sec, while AI-based cuts it to 2-3 seconds.
5. AI-powered Language Translation
With AI, the language barrier will no longer be a hurdle. Using augmented reality, AI-powered translation tools can translate conversations with locals, menus in unfamiliar restaurants, and even historical landmarks in real time. The language based artificial intelligence in travel and hospitality industry can make travel experience easy and language friendly.
6. Robotized self-service
Customer satisfaction is one of the most prioritized operations in the travel and hospitality industry. However, due to limited resources, keeping every guest satisfied and happy is not always possible. But there is a twist: artificial intelligence in travel and hospitality industry i.e. robotized staff can make things easy. AI in travel with integrated robots have the ability to enhance daily operations, make decisions based on massive data, and deal with multiple tasks at once more effectively.
IBM Watson for Hilton Hotels has created Connie, a robot that understands human speech using voice recognition technology to answer client queries.
7. Virtual Reality (VR)
VR technology is basically used to make a simulated environment. This simulated environment gives the users a real-life experience of exploring. Travel industry can use this technology to demonstrate tourist spots and hotel locations. Customers can experience the location, hotel ambience, room quality, and more from sitting in another part of the globe.
This technology can eliminate the concerns of the customers. For businesses, it will help in saving a lot of time, effort and money that they have to invest in traditional photoshoots of the locations.
8. Fraud Detection
Fraudsters are present in almost every business sector and always try to steal money or data of the business & customers. Integrating AI-based ML algorithms can enable businesses to analyze customer booking patterns and identify fraudulent transactions in real-time, protecting tourism businesses and travelers. Businesses can identify potential scammers or fraudsters by leveraging predictive analytics before they claim insurance benefits or make bookings.
Future of AI in Travel and Hospitality Industry
Experts have already predicted that, in this decade AI will remarkably influence and promote standardization & professionalism in the travel sector. According to Research, the global travel tech market encompassing AI is expected to grow significantly by 9% between 2020 and 2025.
A report by Fobes claims that around 58 million new employment opportunities will be created by 2025 due to the rise in the application of AI in tourism and the travel industry. Also, AI will make traveling easy with the latest innovations, which is good news for travel lovers. AI virtual tours will help travelers make informed decisions.
However, we also have to keep in mind that human assistance is always supreme; we can't rely on AI completely, but with the combination of both, the travel industry will reach new heights. So, be ready for AI vacation in the upcoming time.
Wrapping Up
The AI in travel has unlocked a new era of innovation and efficiency for the industry. In the above blog, we have explored 8 prominent applications of AI in the travel industry. Whether you travel by sea or air, traveling for the first time or are a travel agent, you can utilize AI to make your tour smooth and efficient. At the same time, organizations can maintain their customer satisfaction to a higher level. At last, the benefits of AI in tourism are not limited to this; there is much more to explore.
The working of an AI application solely depends on its creation. The higher the creator's experience, the more effective and tailored the application is. Owebest.ai is a leading technology partner with experts that empower businesses to leverage the power of AI for exponential business growth.
By closely collaborating, and understanding customer needs, we not only create tailored, cutting-edge AI solutions but also integrate them efficiently into the existing business process.
Share your query with us today and get customized solutions tomorrow.