Artificial Intelligence (AI) in the travel industry is a topic of conversation in contemporary times. Here’s why...
Travel and tourism industry is growing rapidly as cities restore normalcy after the pandemic. With an increasing number of travelers, hospitality industry is relying on technology to serve guests, more than ever. As a result, different technologies are being used to simplify and streamline operations and raise guest satisfaction.
The advantages of Artificial Intelligence (AI) in the travel industry are enormous and far-reaching. It is transforming the way people travel. In fact, according to an IndustryArc report, the travel AI market is expected to exceed $1.2 bn by 2026.
This blog takes you through the ways in which AI has penetrated and how AI is impacting the travel and tourism industry.
AI is changing the travel industry, sure. But what is AI?
Artificial Intelligence or AI, refers to computers or machines performing tasks that would generally need human intelligence to carry out. In simpler words, it is intelligence that perceives, synthesizes, and infers information, that is different to that of humans or other living beings.
AI has been in existence for a long time now. However, with necessary advancements, it has recently become reliable enough to carry out complex tasks with minimal to zero assistance. Contemporary businesses are data-heavy. This helps AI to perform tasks ranging from processing, analysis of data, and problem-solving. AI in travel industry is simplifying processes, leaving less room for human errors and providing a more personalized experience to its guests. All of this whilst saving time and money!
No industry in today’s time is untouched by technology. Humans want to undertake practices that save time and lessen effort. They also want desired results from these practices. This could only be made possible through technology.
The usage of AI in travel industry has borne fruits so far. Guest feel seen, heard and served better. Let’s dive into the ways AI is used in travel and tourism industry:
AI in travel industry enables a traveler to plan a personalized trip. A smart AI-powered application can help a traveler choose what suits him/her the best. These applications are used by various brands to help customize journey experience for a guest. They also offer travel mapping to provide guidance to travelers and help them explore the places they intend to.
AI-driven chatbots is a trending topic in hospitality industry from quite some time now. Booking queries were never handled in a timelier manner ever before. With travel chatbots, you can find all your answers at one place.
Chatbots assist travelers and tourists by providing all the vital information they would require before, during and after their travel journey. This makes the journey convenient and pleasant for travelers. According to a Thrivemyway blog, two-thirds of the people surveyed for a chatbot related survey found a chatbot useful or very useful when making business and work travel arrangements. Furthermore, the blog states that 37% of users would prefer to deal with an intelligent chatbot, while making travel plans or comparing booking options.
Chatbots do make life easier for both businesses and guests.
AI technology has laid foundation for a digitized hospitality industry. Voice-based digital assistance is being used across the globe by many hospitality companies. Through voice-based digital services, a visitor/guest can make quick reception desk requests, automate room control, do hands-free calling, among other advantages. Guests can further set the ambiance of the room according to their mood and vibe by regulating temperature, lighting, etc. through speech recognition and voice command.
With the help of AI, guests are being able to customize travel and journey experiences to a large extent. Through machine learning and data science, travelers get recommendations as per their needs. Tourist recommendation system provide guests with suggestions tailored to their needs. These systems enhance decision-making and planning, and better schedule procedures for guests.
Moreover, AI-driven products for marketing and promotional campaigns can be used to send targeted messages and emails. Discounts/offers could be communicated to the most valuable guests through the use of AI.
One of the most crucial ways in which AI helps industries is data collection and analysis. Travel and tourism industry, with thousands of travelers visiting in a month, need assistance with data. AI sorts through huge amounts of data quickly. This benefits the hospitality industry as time and efforts of their human resources are saved and could be used at other touchpoints where human touch is required. Furthermore, the data is more accurate. This data then provides insights into human behavior. It is used to draw conclusions about business services, practices and pricing strategies. With AI, businesses could increase their conversion rates.
Advanced AI-driven applications are being used to forecast flights and travel related needs like hotels, transportation, etc. Statistical models explaining emerging trends from different segments of the travel industry are analyzed to give such predictions. Through the forecasts, travelers become aware about the best time to book flights and hotel rooms.
Facial recognition technology is being widely used in hospitality industry nowadays. Put in use for safety purposes and legal requirements, facial identification also helps people save time at airports, train stations, hotels, restaurants and large conferences and meetings. It recognizes people with saved feature visuals in the database from their last visit and shortens the process.
AI baggage handling solutions at the airport have definitely simplified things for the travel companies. Having to look after tons of stuff on a daily basis, automated baggage systems was the much-required technological advancement for the travel and tourism industry. Modern and advance baggage tracking and handling digitized methods ensure a seamless experience, and reliable services.
Robots are being widely used in the hospitality industry to reduce human burden, intervention and ensure efficiency in services. Robotic technologies are used to speed up check ins, assist with other activities like housekeeping, baggage handling, etc. Robots are also capable of providing travelers and tourist with information that is required through AI and machine learning. All this in their native language through embedded translation software. Furthermore, hotels use them to store tons of data about their clients for a more personalized experience. AI is changing travel industry through superior automated products and services.
Feedbacks given by travelers on different review platforms, through travel blogs, or social media are crucial to businesses in hospitality industry as well as other tourists and travelers. Text based comments, reviews and feedbacks are analyzed through machine learning algorithms and language technologies to understand guest experience and better services. Such data is highly beneficial for hotels, travel companies and agencies to evaluate the effectiveness of services and taking steps towards making required improvements.
Also Read: AI Chatbot in Hospitality Industry
Soon travelers wouldn’t be exploring cities, they would be exploring ‘smart cities’, rather more smartly. Cities would transition into smart cities with sensors to collect and manage data related information like traffic and tourist flows, pollution levels, etc. within a city. Input would be provided by them highlighting how to create better synergies between these factors in order run a city more efficiently. Although, this would be mainly done through Internet of Things (IoT), AI will be used to analyze the huge amounts of data collected.
Future would witness more cities adapting to the use of self-driving cars, buses and taxis. This would leave no room for human callousness or error while driving on roads and thereby reduce road accidents. It would further lead to less traffic jams that are caused by oblivious human drivers and their improper driving habits. AI technologies power self-driving cars. Hence, AI would change the way locals and travelers explore the cities.
Therefore, it is no surprise that advantages of AI in travel and tourism industry are multifold. AI is assisting businesses to streamline processes, deliver excellence to their guests and drive revenues. On the other hand, AI is personalizing the guest journey and serving their needs better. With more advancements in future, the hospitality industry would be able to provide their guests with exactly what they want.