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Since its invention, AI technologies have made advances across a maze of different industries. The world of travel and hospitality is surely one of them. Artificial Intelligence is well on the way to reshape its long-standing practices and business processes. Numerous modern travel companies are actively introducing AI-powered solutions to add a new lease of life throughout each step of the traveler’s journey: from initial itinerary planning up to the very arrival in the chosen destination.
In this article, we will explore specific uses of AI in the travel industry that are already working today. Additionally, we will dwell upon the most recent achievements in AI technology that are on the rise today and are likely to disrupt the world of travel tomorrow.
Generally speaking, AI (short for ‘Artificial Intelligence’) is a field of computer science that is dedicated to exploring ways of simulating human intelligence by machines and computers. AI technology enables machines to perform tasks that were previously only possible for humans by programming them to think and process tasks in a way resembling the human approach to problem-solving.
AI is not a single technology. This is a collection of rapidly developing fields of engineering, including deep learning, machine learning and expert systems. These technologies allow machines to learn from experience and make decisions based on human-like problem-solving capabilities. Besides, scientists continue researching to explore more advanced AI technologies, such as Generative Adversarial Networks and Edge AI, to improve various aspects of business.
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Rapid development of AI has already put the travel industry through a significant transformation. Travelers around the globe are enjoying the improved customer experience and much better service thanks to new intelligent solutions. On the other hand, new technology has further perfected the service delivery process and made it much more streamlined and profitable for the business owners.
Let us dig deeper and find out more about AI applications that have already become a part of day-to-day life in the travel industry.
Assisting customers online is one of the most exciting applications of Artificial Intelligence in the tourism industry. AI-powered chatbots on social media platforms and instant messaging apps have already been widely adopted to provide valuable information and answer customer questions. They enable businesses to respond faster and more efficiently, even when customer service representatives are not available. As customers increasingly demand faster response times online, AI technology allows businesses to deliver at a speed that would be impossible for humans.
For instance, online travel booking giants like Booking.com or Expedia are actively using solutions like this in their daily operations. Usually, their website visitors will be prompted to start a conversation with the chatbot after entering the trip details. The next step will be for the bot to search through various websites and find an appropriate deal.
Here is a brief video insight into Expedia’s travel booking assistant powered by ChatGPT:
Another growing trend in travel is the integration of robots in face-to-face customer services, which eliminate the need for human agents. Queuing for information or finding your way in a busy terminal is becoming a thing of the past – all thanks to robots employed by popular airports and hotels. More to that, reports by travel industry insiders predict that robots will be able to fully replace humans in the check-in process by 2030.
For example, here is Connie – the robot-concierge deployed at Hilton hotel chain. Connie runs on IBM Watson AI combined with Wayblazer’s domain knowledge and is capable of answering human queries regarding hotel features and local attractions, while also providing recommendations. It also uses Natural Language Processing (NLP) to comprehend sentences spoken to it. Additionally, Connie can move to show directions to guests and express human emotions by lighting up various colors. It continuously learns from human interactions and improves its capabilities. It is an enjoyable experience for guests and particularly useful in the era heavily influenced by COVID-19 era to ensure customer safety.
The use of AI in travel and hospitality is not limited to just interaction with the end customer. Data processing and analysis is another major branch of AI’s application. This technology quickly and accurately sifts through vast amounts of data, which is highly advantageous for understanding customers, business practices and adjusting pricing strategies.
There is a wealth of data available through social media and review services. For example, Amadeus reported that 90% of US travelers with smartphones share their experiences and photos online, while TripAdvisor has 390 million unique visitors and 435 million reviews. With about 280 traveler reviews submitted every minute, brands can process and analyze this data to generate insights that will improve their services.
Advanced computing power and machine learning techniques allow for analyzing all brand-related reviews. Sentiment analysis, a branch of supervised learning, can be used to explore textual data and rate emotional and factual qualities. For reference, Google Cloud Natural Language API is an off-the-shelf application programming interface that can integrate with analytical tools to provide real-time analysis of all brand-related reviews.
Sentiment analysis of an accommodation review using Google Cloud Natural Language API
The maturity of natural language processing and sentiment analysis allows for adopting accurate analytical tools without time-consuming data gathering. These solutions can be used for dynamic tracking of the overall brand image or ad hoc analysis after product or service updates that cause social media reaction.
Brand-new smart AI-driven price prediction applications are already helping travelers find the best flight prices at the right time much more efficiently. Flight forecasting software can use historical data on weather, flight times, flight speed trends to make accurate forecasts on arrivals, possible delays and lots of other things. This way, the end users benefit from more accurate and reliable projections, leading to more safe and secure journeys.
A great example here is Hopper. This is a prime application that utilizes machine learning AI algorithms to predict optimal prices and flights. It offers personalized recommendations to users regarding the most suitable times to book a flight and also provides real-time updates on whether to buy now or wait for a better price. Hopper’s database consists of trillions of historic flight prices and live price feeds, making it a reliable source for forecasting future prices.
Dynamic pricing – the practice of adjusting travel product prices in response to market conditions, was embraced by the travel industry a while ago. For example, major hotel chains like Hilton and Marriott have been using this approach since 2004 to improve their inventory distribution. However, with the rise of machine learning applications, travel brands can now use predictive analytics to consider more variables when forecasting the best price.
By setting data-driven dynamic pricing, businesses already attract more direct bookings and reduce reliance on online travel agencies. It becomes much easier to change pricing intelligently and ensure that the price level that is set makes sense. Pricing can be made higher during bigger demand or lowered when there’s less demand. However, there are also plenty of other markers that AI can make use of for running better calculations.
More about the essence and overall impact of dynamic pricing solutions – in a recent report by Wall Street Journal.
In addition to more efficient pricing, businesses can improve travel product sales using next-gen distribution channel management. Modern AI-powered solutions can automatically adjust distribution strategies to optimize financial results. More to some recent advancement in AI enable travel companies to automatically fine-tune not only the prices, but also the quality of descriptive content (descriptions, photo galleries, videos) used to advertise travel products on various channels: large OTAs, GDSs, metasearch engines, and so on.
A vivid example of the latter is PropertyVIEW by HotelPORT. This AI-powered content monitoring and distribution management software optimizes audit and management of hospitality content across multiple platforms. Its algorithms identify inconsistencies in the way hotels are presented in various channels and proactively suggest changes to improve content. This results in much better overall quality of marketing content and higher sales. Numerous hospitality giants such as Marriott, Hilton, Hyatt, and others are already using it in daily operations.
PropertyVIEW® Content Monitor
AI is a highly dynamic sphere which keeps developing extremely quickly. New solutions, as well as new versions of existing software, appear on a regular basis.
Below is our outline of the most relevant and trending AI applications in the travel industry in 2023.
Integration of AI and IoT devices opens up new possibilities for the travel industry. With the aid of machine learning and artificial intelligence, travelers can now conveniently plan their trips, make reservations, and conduct voice searches using their devices.
As an example, FlightBeat, a system of sensors powered by AI, is utilized by AirFrance KLM to monitor passengers’ heart rate while flying. Meanwhile, British Airways also employs comparable technology in the form of the Happiness Blanket to track travelers’ emotions.
AI in tourism will definitely keep advancing blockchain with regard to payment processing, transparency, smart contracts, loyalty, luggage handling and so on. Some of the companies which already benefit from AI-driven blockchain technology are:
Learn more about the state of blockchain in travel from our article dedicated to this topic here.
Artificial intelligence and tourism have a growing demand for search engine optimization. Businesses are currently exploring methods to enhance search outcomes through voice commands and keywords, utilizing AI and NLP.
With the aid of AI and NLP, online platforms such as Visits.ai have made it possible for travelers to plan their trips with a single click. The AI gathers details about your preferred destination and personal choices, enabling it to customize your recommendations and itinerary.
The use of machine translation is best exemplified by Google Translate. Numerous companies depend on Google’s Translation API to localize their platforms and expand their reach to a wider audience. Similarly, Lingo24 employs AI-driven cognitive computing to offer more natural translation services that are less mechanical in nature.
To sum it all up, the travel and tourism industry has experienced a significant increase in the use of AI across various areas. We’ve highlighted some well-known AI applications and their functioning.
Whether traveling by air or sea, there are numerous opportunities for passengers and travel companies to leverage AI to enhance the travel experience, increase efficiency, and maintain high levels of customer satisfaction.
More to that, the world of travel abounds in valuable data that are there for businesses to take and convert to their advantage using the latest advancements in AI. The question is how to approach technology implementation in a mindful way and reap the benefits before competitors.
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