Benefits of Artificial Intelligence in Travel Industry

Technological innovations have weaved their way into our daily lives and play a big role in how we work, learn, shop, communicate and travel. The travel industry has been greatly influenced by technology and Artificial Intelligence (AI) technology is helping redefine it. AI powered personalization helps in tailoring travel experiences and offers as per the preferences and needs of individual travelers. AI enables travelers to find the best flights and hotels, helps them discover new destinations and activities and enjoy seamless travel. It can also enable travel business companies to increase their revenue, expand customer loyalty and competitive edge by offering personalized services and products that resonate with and match traveler expectations. The consulting giant, McKinsey, predicts that travel brands that use the ecosystem to help personalize journeys can increase their sales by up-to 30% by 2025.

In this blog, we will explore ways in which AI can enhance the travel industry.

The travel industry is one of those sectors that requires 24 hour real time, on-demand support for their customers. This is essential as travelers planning a trip or facing a concern on a trip, can get immediate and relevant help at any time of the day or night.

AI based chat-bots and assistants provide the most reliable way to save time, costs and increase efficiency. These chatbots and assistants are useful tools that can easily provide travelers with details of travel arrangements and give real time answers to queries on flights, hotels, transportation facilities, entertainment spots and more.

Expedia and Kayak, two of the most famous travel search sites, are using bots that have been integrated into their platforms. These bots use conversational language tools to search for answers to assist travelers. “Connie”, is an AI robot that is used by the Hilton hotel chain. It runs on IBM’s AI program and provides information to guests and acts as a concierge, and The Cosmopolitan of Las Vegas uses “Rose” AI to act as a concierge and enhance guest experience.      

      

AI based tools are great for not only planning or raising various travel related queries, but can assist travelers during their stay. Virtual voice assistants can enhance the stay experience by answering questions, carrying out requests such as temperature settings, turning lights or TV on and off, giving out information related to breakfast timings in the hotel and more. These AI powered voice assistants can also be used to anticipate guest needs and make recommendations based on their history and ultimately deliver a more personalized and engaging experience for guests.

Face recognition is being used for an easier, faster check in process that saves time and ensures a seamless experience for the guest. It enables a contactless process that eliminates even the need for room card keys. AI based face recognition makes it easy for travelers by verifying and allowing flight boarding without the need for a boarding pass. While this has created controversies over concerns about privacy and data use, many airports like the Haneda International Airport in Tokyo, Japan, Dubai International Airport in the UAE, Kuala Lumpur International Airport in Malaysia and others are adopting this technology.

One of the key advantages of AI is its ability to sort through large volumes of data that gets generated, quickly and accurately. The travel industry generates a huge volume of data from various sources such as bookings, transactions, reviews, social media, operations etc. Without AI, however, shifting through this data and generating relevant and useful information would not be possible. AI enables improved management performance by using data analytics and machine learning to generate valuable insights, and thereby deliver better value to customers. 

Price optimization enables finding the best possible price for a service or a product. For travelers this means finding the best possible deal in the travel ecosystem and for the travel industry it would enable them to arrive at a price that provides them maximum revenue and profits. AI can help travelers find the best possible deal by analyzing all the possible factors like booking and other preferences, seasonality, travel context, search history etc. For the travel industry, AI can help derive prices as per the volume generated and adjust prices as per demand and supply.

Automation of repetitive tasks becomes easier with AI. It can help optimize occupancy rates, room prices, staff allocation etc by analyzing booking patterns, customer data and market trends. It can help travel marketing agencies optimize their marketing campaigns, loyalty programs and customer services segmenting customers and personalizing offers tailored to customer preferences. Automation of tasks helps in saving time, money and other resources while improving the focus for delivering a better customer experience.  

Brand management helps create and maintain a positive image and reputation for a business. Ensuring a positive brand name is critical for the travel industry, as it can influence customer perception and loyalty. AI can help the travel industry monitor and analyze customer reviews and feedback on various social platforms. It can analyze data to understand customer opinions, emotions and preferences which can help provide insights and recommendations for business improvement.  AI can help enhance the brand image by generating creative and engaging content for websites, blogs, social media etc. that increases brand awareness, trust and recognition factor among customers.

AI is a powerful tool and can enhance the travel experience for travelers and help in increasing revenue and profits for the travel industry. AI can anticipate the preferences and needs of customers which can enable the travel industry to offer more relevant, convenient and satisfying experiences to create a more loyal customer base and increase business revenue.

The industry can benefit immensely from using the services of software development for travel by offering customized solutions that can help meet specific requirements and challenges. The use of AI in the travel and tourism industry can help it gain a competitive edge and offer relevant customer experience which can translate into higher growth and revenue. 

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