In this article, we will explore how AI will shape the future of travel and tourism and its impact on the industry as a whole.

Understanding Artificial Intelligence (AI)

The concept of artificial intelligence, or AI, is often discussed, but it can actually be a little harder to define. Essentially, it refers to computers or machines that perform tasks that would normally require human intelligence to perform. For example, this could be learning lessons, making decisions, or recognizing and interpreting speech.

Artificial intelligence has been around for decades, but it is only recently that computers and other machines have become advanced and reliable enough to perform complex tasks without assistance. The concept is closely linked to ideas of automation, in which processes are carried out with little or no human intervention.

In the modern age, it is an accepted fact that businesses will collect and store large amounts of data. This can help enable AI, with machines using data to perform tasks ranging from data analysis and problem solving to voice translation, direct messaging, and improved personalization in the customer journey.

The Role of AI in the Tourism Industry

The ability of artificial intelligence to perform tasks that traditionally require human cognitive functions has made it particularly useful for those in the travel industry, as implementing AI can save businesses time and money, while also potentially eliminating human error and allowing tasks to be performed quickly at any time of day.

Most hotels and resorts rely heavily on providing excellent customer service to build their reputation, and AI technology can help with this in a variety of ways. For example, AI can improve personalization, make tailored recommendations, and ensure fast response times, even when staff are not present.

Artificial intelligence is used in travel industry has advanced to the point where it is regularly used to assist and communicate with customers, ‘learning’ from each of these interactions and improving future interactions. Furthermore, AI can assist with tasks such as data analysis, computation and problem solving, which can be valuable to hoteliers.

Applications of artificial intelligence (AI) in the tourism industry

The role of artificial intelligence in the business world has grown significantly over the past decade, and the past few years in particular have seen much wider adoption in the travel industry. Here are some of the most important ways the technology is being deployed.

1. Chatbots and Online Customer Service

For hotels and other businesses in the travel industry, one of the most exciting applications of artificial intelligence is online customer support. In particular, there has been widespread adoption for purposes of powering chatbots on social media platforms, as well as instant messaging apps.

Used in this way, AI can answer questions and provide valuable information to customers, even when there is no customer service representative present. Customers are demanding faster and faster response times on online platforms, and AI allows businesses to deliver in a time that humans simply cannot.

2. Direct customer service

While using artificial intelligence to assist with online customer service is fairly common today, one of the emerging trends is using the technology to interact directly with customer service. This can cut down on queues at information desks or reception desks and improve overall efficiency.

An example of this technology in action is the AI ​​robot 'Connie', deployed by Hilton Hotels. The robot uses artificial intelligence and voice recognition to provide tourist information to customers who talk to it. Every human interaction also helps teach the robot, improving the quality of all future interactions.

Read more: AI Applications In eCommerce: Game-Changing Factors For Efficiency

3. Data processing and data analysis

You must understand that the applications of AI in the travel and tourism industry are not limited to customer service. One of its most common and effective applications is collecting and interpreting data to draw conclusions about customers, business practices, and pricing strategies.

The main advantage of artificial intelligence in this particular field is its ability to sort through huge amounts of data quickly and accurately. In contrast, humans would take longer and potentially make more mistakes to do this. For example, the Dorchester Collection hotel used AI to sort through customer feedback from online surveys, reviews, and polls to build a clearer picture of current sentiment in real time.

4. Voice-based digital assistance

One emerging use of AI in the travel and tourism industry involves providing voice-based digital assistance in many forms. For example, it is now possible to provide voice assistants in hotel rooms, allowing guests to ask questions or make requests and receive immediate responses.

Voice recognition technology opens up the potential for voice-controlled room control and instant 24/7 access to travel information. Robots can also provide voice-based digital support, meaning customer service desks can be left unstaffed, especially during off-peak times.

5. Flight forecast

The use of AI in the travel and tourism industry is also increasingly influencing flight forecasting. This discipline relies on existing data and historical flight data. Artificial intelligence can be invaluable in analyzing huge amounts of data and identifying relevant trends.

Based on this data, AI-powered software can use weather patterns, historical flight times, and trends related to flight speeds to accurately predict when flights will arrive and how long delays may occur. As a result, software users can benefit from access to more accurate and reliable forecasts.

6. Social media channel analysis

Artificial intelligence in the travel and tourism industry also has an important role to play when it comes to social media. In particular, businesses in the industry can use AI to better understand how users interact with their social media channels and what those users are saying.

Some social media channels attract so many interactions every day that it is almost impossible to monitor and analyze them manually. With artificial intelligence, key trends can be identified, the most common sentiments can be understood. Companies can gain a better understanding of their audience.

7. Flexible pricing

Many businesses in the travel and tourism industry operate on a dynamic pricing model based on current demand and availability. This applies to hotels, airlines, and many other types of businesses, and AI in the travel and tourism industry can play a key role in optimizing such strategies.

With AI’s ability to quickly sort and analyze data, it becomes significantly easier to adjust prices intelligently and ensure that prices are set appropriately. Prices can often be set higher during times of high demand than during times of low demand, but there are other factors that AI can use to make intelligent calculations.

Read more: Understanding Artificial Intelligence ( AI ) Applications in Healthcare 2024​

8. Smart baggage handling

The use of AI in the travel and tourism industry also extends to baggage handling and security. AI can be used to sort baggage more efficiently, reducing errors that lead to lost baggage. Additionally, AI can help sort unclaimed or lost baggage.

AI technology can also be deployed for security purposes. For example, when airport security systems scan luggage, AI can automatically scan the image and detect items of interest. An alert system can then be set up, drawing the attention of security personnel if something suspicious is detected.

9. AI Facial Recognition

Artificial intelligence is the underlying technology behind automated facial recognition. It essentially compares real-time images with images in a database, using facial features to identify individuals. The best facial recognition technology can identify individuals within seconds.

Facial recognition using AI in the travel and tourism industry is often deployed for security purposes. For example, in airports it can be used to detect people of interest. In some cases, facial recognition can also be used to determine how many people are in a particular area, which can also be valuable for safety and security.

10. Personalize the travel experience

The travel and tourism industry is also using AI technology at the beginning of the customer journey to provide a more personalized travel experience. This is most commonly seen with websites that offer hotel, flight, or other travel-related bookings, where intelligent recommendations can be made during the booking journey.

For example, AI could use information from a user’s exploration of a website to make relevant recommendations for hotels or destinations based on what the user is searching for or considering. This could work in a similar way to how retailers like Amazon recommend products based on previous purchases or browsing. AI chatbots could also be deployed, answering customer questions when making a reservation.

11. Travel Disruption Management

Forecasting is one of the biggest applications of artificial intelligence in the travel and tourism industry, and this can potentially be used to significantly reduce travel disruptions and manage any issues that arise.

For example, AI can use historical data to identify trends that can then be used to accurately predict the likelihood of a flight delay. Additionally, AI can collect data from weather forecasts, compare this data to past data, and provide guidance or advice on whether disruptions are likely and how to resolve the issue.

Read more: EDUTO's AI Library

12. Revenue Management

Revenue management is the process of selling the right product, to the right customer, at the right time, at the best price, in the most efficient way. It is a data-driven discipline, which is why artificial intelligence can be beneficial, helping those in the travel and tourism industry maximize their revenue.

AI makes it easier to sort through all the available data. This can include existing bookings, available rooms or seats, upcoming events, and historical data on demand levels at the same time of year. From there, AI can automatically adjust pricing and distribution strategies to optimize financial results.

13. Supported Aircraft and Airspace Maintenance Reporting

Predictive analytics is an area that airlines are investing heavily in, because it can save them significant amounts of money lost when unexpected incidents arise that require aircraft to be grounded.

Artificial intelligence and predictive analytics can be used to understand when maintenance is needed and to predict problems before they arise. When airlines and others in the travel and tourism industry use AI in this way, they can act at the time when disruption is least likely.

14. Employee management schedule

Hotels, airlines, and other travel and tourism businesses can use AI to improve employee management and scheduling. In companies with many employees, creating a work schedule can be a complex and time-consuming process, with many moving parts that need to be factored into any decision.

With AI, a feasible work schedule can be automatically generated, including all available data, such as the number of hours each employee has worked, the need for senior staff during each shift, the number of hours each employee is contracted to work, any approved holidays, and the required break time between shifts.

15. Forecasting prices and demand

Modern customers are always looking for the best price, but many factors can affect the price of hotel rooms, airline tickets, and other products and services in the industry. Software powered by artificial intelligence can help customers in the travel and tourism industry better understand price fluctuations.

For example, the software can alert users that hotel room prices in a particular destination are likely to increase. At the same time, the software can help customers understand when demand is rising or falling, allowing them to book their travel or hotel at the best possible time.

16. Facilitate loyalty programs

Loyalty programs serve an important function by encouraging customers to return to a business again and again. However, for a successful loyalty program to achieve this, the rewards offered need to be worthwhile, and this is another area where the travel and tourism industry and AI go hand in hand.

Using online tracking, transaction history, and personal preferences acquired during sign-up, AI can provide loyalty program members with personalized rewards to keep customers coming back.

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17. Detect and prevent payment fraud

Businesses in the travel and tourism industry deal with many different types of payment fraud, and AI can be a valuable tool in detecting and preventing many of these issues. One of the main ways this can be achieved is through pattern recognition and behavioral analytics.

By analyzing data from previous fraud cases, payment fraud attempts can be identified before any serious damage occurs. Alerts can be set up to flag suspicious activity for human intervention.

18. Travel Disruption Communication

Travel disruptions can come in many forms, from delayed flights or trains to lost luggage or long lines at security. However, one of the most important things for travel companies is communicating with customers, who need constant access to the most up-to-date information.

When problems arise, AI can be used to communicate messages to travelers. Automated emails and text messages can be sent when delays are expected, and AI can also calculate how long those delays are likely to take. Meanwhile, AI-powered chatbots are used across the travel and tourism industry to answer travelers’ questions.

EDUTO – Leading Technology Partner in Vietnam

Established in 2020, EDUTO is one of the leading IT companies in Vietnam, specializing in providing digital transformation consulting services and software solutions in the fields of finance, healthcare and retail for domestic and international enterprises. With the desire to contribute to enhancing Vietnam's position on the global IT map, EDUTO aims to bring innovative technology to life by leveraging the technical workforce in Vietnam, and the vision of becoming a leading IT company in the ASEAN region.

With technology constantly evolving, it is no surprise that its applications in the tourism industry are also evolving. In the following articles, EDUTO will summarize more advanced technologies in the tourism and travel industry today.