How Artificial Intelligence (AI) is Transforming the Travel Industry?

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.

What is Artificial Intelligence?

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!

AI in Travel Industry

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: 

1. Smart AI-powered travel applications

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. 

2. Travel chatbots

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 ai 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.  

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3. Voice-based assistants

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.

4. Advanced personalization

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. 

5. Data processing and analysis

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. 

6. Predictive applications

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. 

7. Facial recognition

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. 

8. Baggage handling solutions

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. 

9. Robots

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. 

10. AI-based sentiment analysis tools

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

What more to expect in the near future?

1. Smart travel in smart cities

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. 

2. Self-driving cars

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.

Conclusion

There is no denying artificial intelligence's revolutionary influence on the tourism sector. AI is transforming passenger experiences and company operations through unmatched convenience, efficiency, and personalization. AI is establishing new standards for guest enjoyment and operational excellence in a variety of ways, from chatbots and smart travel applications to sophisticated data processing and predictive analysis.

There are countless opportunities to improve the travel experience as AI develops. The use of AI chatbots in the hotel industry is one of the most fascinating trends. In addition to streamlining correspondence and offering prompt support, these chatbots also pick up on visitor preferences and adjust accordingly, guaranteeing a smooth and customized experience.

Presenting BOTSHOT, the industry-leading AI chatbot for the hotel sector. Through the automation of repetitive operations, quick guest service, and customized recommendation engines, BOTSHOT assists hoteliers in providing outstanding guest experiences. Your hotel may boost revenue growth, improve visitor happiness, and improve operational efficiency.

Meet the AI-powered travel of the future and learn how BOTSHOT can revolutionize guest relations and hotel operations. To find out more and begin your path to a more intelligent, effective hospitality experience,

Book a demo and start your 14-day FREE trial today!

Frequently Asked Questions:

Q1.) What are the challenges of implementing AI in the travel industry?

A1.) Here are a few challenges involved in implementing AI in the travel industry -

• As the AI systems gather vast amounts of data, it can create security and data privacy issues.
• It can create biases for certain groups of travelers. 
• Accessibility issues have become a rising concern for travelers who have disabilities or lack of technology access. 
• AI creates certain legal and regulatory hurdles in the travel industry.
• AI technology is exposed to certain bugs. Technology is at an evolving phase, and travel companies need to research a bit about exploring the full potential of this technology. 

Q2.) How can AI help reduce operational costs in the travel industry?

A2.) AI-powered chatbots and virtual assistants revolutionize the travel industry by automating routine and time-consuming tasks such as booking confirmation, check-in requests, or guiding the user through the reservation process. 

Thus, it reduces the operational costs. 

Q3.) How does AI influence marketing strategies in travel and tourism?

A3.) AI in the travel industry goes beyond traditional travel processes by predicting travel needs and preferences. 

This way travel and tourism companies can enhance customer engagement by providing personalized messages and targeted promotions. Thus, it can increase customer loyalty and they’re likely to book again.

Moreover, travel companies can use AI to predict travel trends in the future and customize their packages and marketing strategies accordingly.

Q4.) What is the future of AI in the travel industry?

A4.) The future of AI in the travel industry seems promising with various advancements in this field - 

• AI assistants simplify the booking process.
• Robots and concierges have come to provide better service to travelers.
• Travel companies are using big data to predict customer behavior and provide better solutions.
• They’re curating personalized travel plans on apps/travel platforms depending on traveler history, preferences, needs, etc.

Q5.) Is AI revolutionizing the travel industry?

A5.) Yes, AI revolutionizes the travel industry in the following ways-

• Smart AI-powered travel applications.
• Introduction of travel chatbots and virtual assistants.
• Robots have come forward.
• AI-based sentimental analysis tools help travel companies to know their customers better.