How Artificial Intelligence is changing the travel industry: 10 examples

How Artificial Intelligence is changing the travel industry: 10 examples

The contemporary travel industry would be incomplete without artificial intelligence — businesses without making their first steps in this science will lose a mind-blowing competitive advantage and lose the battle for setting trends and reaching global exposure.

The tourism and travel market is projected to grow more in the future, and its success comes hand-in-hand with the introduction of new technologies and innovations in the field. According to Statista, the share of AI-influenced revenue in the travel industry is expected to rise to 32 percent in 2024. 

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In this guide, you will get to know more about the impact of artificial intelligence on tourism and what the future holds. Mind the gap!

What is Artificial Intelligence?

People usually refer to a field, combining modern computational technologies and resources to accomplish instant and data-driven problem-solving. In practice, AI isn’t universal and boils down into several categories, depending on how and what data it operates — from reactive and generative to self-aware and limited memory.

Present-day AI isn’t the end. It is just one of the outcomes of the technological advancement in the field. Since the 1950s with its focus on neural networks, it has evolved thanks to machine learning and deep learning breakthroughs.

How is AI used in tourism?

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In a nutshell, artificial intelligence can modify any process in the industry. AI travel planners will prove their sufficiency in delivering flexible scheduling and real-time updates and notifications for maximum satisfaction from a trip. AI in travel feedback analysis is an exquisite tool to optimize error-finding, bug-fixing, and update-releasing procedures.

With AI in travel and tourism, both businesses and customers can advance the steps they take to achieve their objectives in the market:

  • checking and complying with international passport, security, and other requirements;
  • arranging travel insurance and other security measures, including a sharable emergency profile in an AI-driven travel app;
  • researching local places of interest and discovering hidden gems before the journey;
  • estimating local accommodation and transportation based on the target search filters;
  • setting realistic and data-driven budgets.

10 Examples of using AI in tourism

From flying improvement to travel itineraries, there are a lot of processes when involving AI tools is a worthy strategy. Boosting your awareness on the topic will pay off, regardless of your objectives in the market. Whether you are planning your next trips or professional application for tourists, understanding the horizons of AI in travel comes first. Keep on reading to estimate the efficiency of artificial intelligence for your goals.

AI assistants for travel booking systems

It is up to you to decide what performance route to choose to implement AI assistants in the flight and travel booking processes. Customers can employ such tools to plan their trips, discover the best offers in the twinkle of the eye, and personalize their search results. Recently, Booking has introduced its new AI Trip Planner to visualize the preparations for a person’s journey and boost the ease of decision-making.

Travel booking features with AI in mind come in handy to solve urgent matters and find another solution if the flight is canceled, for instance. Overall, it is a multifunctional technology to take care of car rentals, reservations in hotels, accommodations, flights, and other matters in advance.

Face-to-face customer service

Without a doubt, artificial intelligence technologies completely change the way people travel. Both short and long trips are now more seamless, while the use of itineraries and other AI tools has made user experiences highly personalized. To improve the system’s operational efficiency and automate risk and disruption management, however, companies traditionally employ in-house customer support teams.

Don’t get it wrong — AI won’t replace any human interactions in the sphere of online customer services. Still, it can improve the credibility of chatbots and other automated tools. For example, travel scheduling and hotel management can benefit from the use of analytics-driven artificial intelligence technologies, especially when integrated with cloud-based travel software:

  • AI-based taxing;
  • smoothly integrated payment gateways;
  • check-in and check-out updates in real time;
  • updating housekeeping requirements, urgent changes, etc.

In the future, face and voice recognition will advance humanoid assistance in hotels, museums, and so on. There are already hotel chains, known for recorded cases of physical robot deployment in their facilities to coordinate the work with customers.

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Voice assistants

First and foremost, it is about adding more comfort and convenience to people who use travel-related services on the go. From the start of the journey to its final destination, modern travel apps with voice commands and search modify how people seek data in the market.

On the contrary, voice assistants, also including screen-reading features, add more inclusivity to the way the travel system operates. Although AI-driven voice assistants are a popular trend across industries, it is the reason why tourism can accelerate its evolution for customers with limited mobility and other disabilities as well.

AI-Driven applications for flight forecasting

AI is already revolutionizing how airlines and related institutions navigate ever-changing weather conditions, turbulence, and operational delays. Accompanied by satellites and hyperlocal radar stations, the use of artificial intelligence might become a high-end standard of international security in the industry:

  • Flexible and versatile forecasts — weather AI tools continuously modify their efficiency based on a variety of flight route-specific data. By analyzing the performance of onboard systems and such metrics as wind speed, altitude, air temperature, etc., the prediction capability of AI in travel is only expected to overcome its current limits and provide precise reports and analytics of ever-changing flight conditions.
  • High-resolution modeling — compared to traditional methods, this technology is capable of micro-scaling distinctive atmospheric changes and meteorological events. In turn, the delivery of more accurate and in-depth insights into local weather phenomena is possible.
  • Machine learning — the more data you get, the better the performance of systems like neural networks in the travel and tourism industry is expected to be. It approaches scheduling flights and optimizing the work of airports and airlines in a more data-driven manner.

AI-Powered payments and fraud detection

In the right hands, artificial intelligence can drastically change your idea of secure and instant online banking. In its simplest form, AI tools analyze data from several sources and let interested parties take the most out of flexible pricing and personalized deals. On the contrary, their ability to monitor and estimate the value of numerous pieces of information at once promotes advancing safeguarding measures to regulate and authorize fiat and digital asset transfers.

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AI can identify and flag suspicious activities within the network, analogously to how it defines end-user behavior patterns. From disruptions in app usage and anomalies in online payments, AI-powered travel apps will prevent counterfeit services, data breaches, information leaks, and maleficence in the tourism market. Combined with blockchain technology advancements and data encryption methods, the use of AI in the travel industry will only thrive and blossom.

AI-Powered face recognition

This type of biometric artificial intelligence is commonly associated with Face ID from Apple, but it can also be actively deployed in the tourism industry as well. 

Let’s take a closer look at what issues and challenges it can solve and complement various travel-related processes.

Finance & Online  Banking

AI tools can advance the safety and security of the travel app. Aside from two-factor authentication, the face recognition feature will be a helpful method to sign in to the system and perform activities like booking tickets or paying for transportation via the app. Check-in and check-out procedures in hotels can also employ this technology and potentially exclude intermediaries like staff members in such cases.

Data analysis

In the long run, this technology might be able to determine not only a person’s face and identity. It will contribute to data collection and analysis to determine current trends in the industry. For instance, businesses can benefit from AI-based features to identify the target client’s mood, age, and gender just based on the face recognition tactic. They present a wonderful path to obtaining trustworthy information on client reactions to various places and offerings, as well as their demographics.

Security & Personalization

Although these are the two most obvious illustrations of how AI can boost tourism industrial development, people don’t quite understand the limits of its influence and potential. AI-boosted face recognition will assist in establishing trustworthy relations between travelers and staff of different establishments along the way, including hotel representatives.

AI-Based personalization

Artificial intelligence tools simplify the challenge of identifying the right means and solutions to satisfy end users’ search intents. By delving deeper into what audiences want and require, businesses in the tourism and travel industry can effectively customize the unique customer journeys they offer and improve their services in the future.

Here is how travel agents and brands redefine the concept of convenient and versatile traveling with AI technologies:

  • Tailored offers based on automated client segmentation — with AI-based tools, it is possible to analyze large volumes of data and easily distinguish similar and distinctive patterns to cater a general list of offers to a particular search inquiry. AI will assist in boosting the efficiency of SERPs within the app, providing not only the most affordable deals but also child-friendly ones — based on previous journeys and search queries of the target client.
  • Feedback analysis — businesses are welcome to implement AI tools in their applications and harness the power of machine learning to detect unique user behavior patterns. Knowing exactly what people think about your travel product, what caused them to abandon the service, and so on, will level up the quality of your troubleshooting approach.
  • Occupancy prediction and on-demand data forecasting — AI can complete more challenges than it might seem at first. Its efficiency pays off, especially when you want to know what belongings to pack to be up in arms for expected weather conditions in the area during the trip. AI will mail it if you want to ensure the availability of tickets or desired accommodations, AI will nail it.

AI & Gamification

By including gaming components in travel apps and offers, businesses can encourage target audiences across markets to engage with different content more actively. This way, service providers will also guarantee more enjoyable and unparalleled customer experiences. Aside from fostering social connections, improving the performance of travel services with AI gameplay elements will let interested parties recognize your deals among others and positively influence your reputation.

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Here are some of the most popular methods to implement AI technologies and gaming features in the travel and tourism industry:

  • Loyalty programs — companies can introduce custom games to let end users complete their levels, beat their bosses, and earn prizes and VIP points for up-market deals.
  • Quizzes — treasure hunt adventures are a prominent way to ensure enthusiasts get to know more about the target destination in a highly memorable and enjoyable environment.
  • Travel challenges — this trick will inspire customers to share more content via the travel app and increase lead generation, conversions, click-through rates, organic traffic, and other revenue-forming metrics for its owner.
  • Leaderboards — AI will guarantee real-time updates, ensuring interested parties can easily navigate through the gameplay and overall travel app’s system. In turn, it will assist in maintaining the competitiveness of customers and their willingness to spend more time within the business network.

AI for streamlining baggage handling

In a nutshell, such tracking systems harness AI-based technologies to improve their computer vision and monitor the current location of a person’s luggage within the airport. If a travel app development company cooperates with airports and their security systems, it might be possible to monitor the data through high-resolution cameras and find your belongings quickly and without difficulty.

Additionally, AI-driven technologies in tourism come in handy for airports as well. They can assist the venue’s workers to effectively allocate instruments and resources to avoid traffic jams and streamline baggage handling and other related procedures. For instance, machine-learning algorithms of AI can analyze historical records and locate user behavior insights and seasonal patterns with peak luggage arrival periods.

AI-Optimized travel itinerary

AI-driven algorithms analyze your preferences and interests to offer versatile scheduling opportunities with real-time and accurate suggestions and recommendations — what accommodations to choose, what places of interest to visit, and so on.

Modern AI planner tools for travelers draw customers’ attention thanks to their advanced budget management features to compare different offers and personalize clientele’s decision-making strategies. AI travel apps of this type impress with their customization and cross-platform efficiency — their well-responsive interfaces quickly adapt to the requirements of several devices and displays.

The benefits of premium AI travel planning include the following:

  • seamless organization of your leisure time, including improvised time breakdown options;
  • smart optimization, especially when you add new details to your profile and travel event schedule;
  • cost- and time-saving based on the efficiency of AI travel itinerary;
  • interactive maps with features to emphasize its special locations or create the most convenient or affordable route from point A to point B;
  • multilingual support with AI-driven in-app translation tools;
  • helpful links to third-party resources, including parks, medical facilities, hotels, etc.;
  • access to high-end visuals of the target destination and its places of interest in one place.
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What is the future of AI in travel?

Not only can the current AI-boosted processes improve, but there also can be more new services solely based on the further progress of the distinguished technology. One thing is for sure — its bright future is right around the corner. Day by day, more companies decide to transform transportation, accommodation, hotels, travel guides, and other services with AI. 

The next step is to make AR, VR, and AI technologies more accessible for audiences, regardless of their level of tech-savviness. Besides, advancing and securing automated processes will never be an out-dated purpose for AI software developers. Another peculiarity is a stronger connection between industries, including more safeguarded supply chain management, fraud detection, risk mitigation, and budget management procedures.

Final thoughts

Whenever it comes to artificial intelligence and its practical use, a lot of controversies arise. Nevertheless, this technology has already proven its efficiency in booking tickets, flight-related risk management, customer service improvement, and other aspects of the tourism industry. The next generation of AI might bring even more advancements to choose from and satisfy a greater number of customer needs and business goals. For now, it is a nice idea to keep exploring the limits of AI and take an active part in reshaping the travel industry.

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What software do travel agents use for travel planning?

Travel agents are interested in numerous well-optimized and fits-all-needs features to maintain long-term relationships with their clients. That’s why platforms that guarantee enhanced decision-making, cost savings, budget, and inventory management features, to mention a few, do stand out a lot. It is also great when such systems are empowered by offline accessibility and high-end data backup.

What are the advantages of AI in tourism?

The list of benefits it is possible to obtain for a traveler and a tourism business varies. Overall, it is about taking the most out of a well-optimized and scalable customer relationship management system (AI-based reviews and ratings, customer support, etc.) to enjoy simplified and streamlined booking processes, data analysis and comparison, as well as real-time reporting.

How can you use ChatGPT and AI for travel?

Artificial intelligence technologies, including ChatGPT, come in handy to forecast client behavior based on their prior experiences, which helps travel agencies optimize their work. Customers can follow the example of popular travel apps and harness the power of AI to obtain more tailored and superior guidance at the target destination. Such methods can function analogously to TripAdvisor and similar tools, providing relevant data on a particular search query in one place.

Which AI is best for tourism?

Whether you are interested in finding the right solution to explore the travel market or get inspired to establish your product for tourism purposes, there are several AI-powered applications to take into account. While popular companies like Airbnb and Booking add AI-based features to their interfaces, the market also offers more AI-focused decisions — TravelPerk, Ezus, Lemax, and others.

How is AI transforming the travel and tourism industry?

Given the fact that the tourism market size is constantly increasing, it is important to win a competitive advantage and make a business stand out among other offers. AI tools and features are mostly focused on improving the performance of the travel app or website and bringing more customer-oriented and user-friendly notes to it. 

In the case of the features, highlighted in this guide, it is possible to drastically boost brand recognition, client loyalty, online visibility, and other crucial parameters to enter new markets and maintain a great reputation in the industry. Of course, don’t forget about the role of AI in streamlining operational processes in tourism and travel.

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