Artificial intelligence is not a new concept to the world. The annals of AI can be traced down to Alan Turing’s machine that changed the course of World War II. However, the commercial boom of artificial intelligence is credited to the advancements in Natural Language Processing and Generative Pre-trained Transformer models. The force of AI can be felt in every industry and Travel industry is no different. As per Statista, the projected share of AI-driven revenue in the travel industry has increased to 32% in 2024. Travel agents should make the most of the opportunity and leverage the first movers advantage by enrolling early in the AI driven technology. Let us discuss some of the top applications of AI in the travel industry and how to use it to one’s benefits.
1. Travel experience
Personalization has become the cornerstone of success across industries. Similarly, delivering customized experiences is now crucial for travel agencies. However, 0.4 zettabytes of data uploaded everyday to the internet, analyzing and synthesizing data to one’s advantage has become more difficult now than ever. Artificial intelligence has come to the rescue of the travel agents creating itineraries that align with a customer’s interests, whether they seek adventure, relaxation, or cultural immersion.
Did you know: A study conducted by Statista found that 39% of leisure travelers were highly satisfied with AI-generated recommendations in 2023-2024.
2. Virtual and augmented reality
Social media has enhanced the virtual sensing capabilities of humans. With the advent of virtual and augmented reality, these abilities have been rising eversince. Travel agents can use AI to easily augment their holiday packages and provide a pre-visit experience of hotels, destinations, restaurants, etc. to their customers. AI-powered AR applications can also overlay additional information in real-time, such as restaurant reviews, historical facts, or nearby attractions, making exploration more interactive and informative.
3. Demand forecasting
Travel agency business runs on providing the best package deals to customers while securing high profits as commissions. Staying abreast with the dynamic pricing, seasonality, loyalty programs, rewards, and others, can help save highly on every deal. AI uses machine learning capabilities to optimize pricing, anticipate popular destinations, and manage capacity to meet changing demands.
4. Customer support and conversational AI
According to the Chatbot Market Report by Markets and Markets, the global chatbot market is expected to grow to $15.5 billion by 2028. Additionally, as per Statista, in 2024, 22% of global travelers used AI chatbots on their mobile devices to plan their trips. With powerful AI chatbots at disposal, Travel agents can easily solve the simple to complex queries of their customers. The conversational AI through NLP can make the conversations with the customers real and human-like. Further, travel agents can provide necessary information about weather predictions, must-try recommendations, and much more by integrating artificial intelligence into their offerings.
Forewords
The future of travel is inseparable from AI. Its integration into the travel industry will not only streamline operations but also enhance the overall customer experience. As AI technology continues to evolve, travel businesses have to keep up with the rapidly changing landscape.
Pratyush Kumar Srivastava is a seasoned expert in B2B travel writing with years of experience in the industry. With a deep understanding of the intricacies of travel technology, supplier relationships, and market trends, Pratyush offers valuable insights to help businesses optimize their travel booking strategies. Passionate about innovation and efficiency, he is dedicated to guiding travel agencies through the complexities of modern distribution channels to achieve growth and success.
