9 Real-World Use Cases of AI in the Travel Industry
Reading travel brochures and relying on travel agents for the best deals feels like a relic of the past. Today’s travel industry is fueled by innovation, responding directly to customers’ demands for personalization, easy-to-access information, and even AI-powered travel planning. AI, in particular, has been a game-changer, playing a significant role in the industry’s rebound from the COVID-19 pandemic.
This digital revolution has seen a surge in the use of cutting-edge technologies like large language models (LLMs), robotics, and AI. Leading travel platforms like Expedia and Booking.com have been at the forefront of this shift, seamlessly integrating machine learning into their user experience. Take the “recommended for you” section – which is powered by AI, personalizing your travel discovery journey.
“Gen AI significantly eases the process of travel discovery” – McKinsey
However, the progress has not stopped there. New use cases have emerged that seem like something out of a fantasy world. Let’s discuss these real-world use cases of AI in the travel industry with examples and forecast what the future holds for AI in travel.
Please bear with us.
Role of AI in the Travel and Hospitality Industry
Fraudulent bookings using stolen credit cards are a major concern for the travel and hospitality industry, along with human error in service allocation. Fortunately, artificial intelligence (AI) can effectively address these issues.
AI plays a crucial role in the travel and hospitality sector by enabling:
- Efficient resource management
- Improved customer handling
- Streamlined travel planning
- Enhanced prediction and analysis
When integrated into business operations, AI can benefit both companies and customers. For businesses, AI can reduce costs through semantic booking and enhance visibility through AI-driven analytics. At the same time, customers can enjoy easier navigation, improved travel experiences, and personalized services.
AI can be integrated into different parts of a business, such as customer-facing interfaces for interaction, background systems for curating suggestions, and travel planning databases, making it a valuable asset for the industry. Let us see some examples of various unique and working uses of AI in the travel industry.
Use cases of AI in Travel and Hospitality
AI’s influence on tourism is undeniable. A Statista report shows that across the globe, particularly in tech-savvy countries like the US and India, a significant portion (over 20%) of mobile-booking travelers are embracing AI chatbots for planning, booking, and researching their trips. This trend highlights the growing role of AI in shaping the travel landscape.
Companies are keeping up with users’ preferences and implementing AI in their businesses in these 9 prominent ways.
Travel Mapping
Today, there are innovative startups and AI-driven applications that specialize in assisting travelers with trip planning. By asking travelers a few questions about their budget, travel dates, and interests, they craft a customized itinerary tailored just for them. AI algorithms analyze their preferences and recommend budget-friendly accommodations, nearby or roadside dining options, and popular tourist attractions, saving travelers time, money, and effort all at no cost.
Travel with Jeeves
Our expertise in AI integration helped power Jeeves, an innovative online travel planner.
Through their user-friendly app, Jeeves personalizes your trip planning. If you want to plan a weekend getaway: Jeeves asks about your budget, travel dates, and interests, then crafts a custom itinerary. Hotels, restaurants, and attractions – all tailored to you, saving you time and effort.
Sentiment Analysis
Okay, so your itinerary includes a charming little beach town you’ve never heard of. But how do you separate online reputation from reality? Here’s where AI sentiment analysis comes in!
AI scours the web for reviews, comments, and photos related to your chosen destinations and activities. It analyzes the language used, identifying positive and negative sentiments. This helps you understand the overall vibe of a place and avoid potential disappointments.
For example, say you’re considering a hike known for its stunning views, but the AI picks up on a trend of negative reviews mentioning a particularly challenging climb with unclear signage. This forewarning allows you to adjust your expectations or choose a different path altogether.
TripAdvisor
Take TripAdvisor, for example. TripAdvisor leverages AI to perform a more nuanced analysis of online reviews. It identifies specific themes and topics within guest feedback. This allows travel businesses to gain valuable insights into various aspects of their service, like cleanliness, location, or staff interaction. By understanding these key areas, businesses can refine their offerings and ensure a truly positive experience for future travelers.
Virtual Assistance
Businesses are taking the experience to the next level of seamlessness where a virtual assistant assists you in digging out what you actually like. The virtual assistant is trained to assist you to get your dream itinerary planned but the implication goes even further. What happens when you’re actually on your trip and need a helping hand?
AI assistants can be accessed through your smartphone or even smart devices in your hotel room. Simply ask your question, whether it’s “Where can I find the nearest ATM?” or “What are some must-see cultural experiences nearby?” The AI uses its vast knowledge base and real-time data to provide accurate and up-to-date information.
Expedia Assistant
A prime example is Expedia Assistant with its suite of travel skills.
It recently announced its collaboration with ChatGPT to integrate AI into its mobile application. This handy chatbot understands your preferences and helps craft your dream vacation. Simply chat with the assistant about your desired destinations, interests, and budget. It’ll recommend hotels, activities, and flights, all tailored to you. [4]
Imagery Optimization
The visual assistant has assisted a traveler in finding a nearby hotel but when it checks for hotel pics some blurry storage room appears. It’s not ideal, first impressions matter, especially when booking a hotel! But blurry photos or generic room shots can leave a business owner feeling unsure. This is where computer vision another use case of AI is being implemented.
This AI technology analyzes user feedback and photo ratings, learning what makes a picture truly inviting. Then, it selects the best photos for your hotel, showcasing the most captivating features – spacious rooms, stunning views, or inviting amenities.
Airbnb Computer Vision
Airbnb leverages AI to analyze user feedback and photo ratings.
By utilizing AI for image optimization, Airbnb ensures that travelers see the best possible representation of each rental property. This not only enhances the user experience but also increases booking rates for Airbnb hosts who leverage high-quality, informative photos.
Personalized Recommendation
Travelers today seek experiences that cater to their individual preferences. AI-powered recommendation engines are revolutionizing this aspect of trip planning. These intelligent systems analyze vast amounts of data to provide personalized suggestions for hotels, attractions, and activities.
AI gathers information about your travel style (interests, budget), past travel history, and even online behavior. The AI analyzes this data, identifying patterns and creating a unique profile of your travel preferences. Based on your profile, the AI recommends hotels, activities, and experiences that are likely to resonate with you.
Booking.com
Booking.com leverages AI to create a personalized travel experience for each user. By analyzing your search history, browsing behavior, and past bookings, their AI can predict your travel preferences. This allows them to recommend flights, hotels, and activities that perfectly match your interests and budget.
Dynamic Pricing
Travel costs can fluctuate significantly depending on seasonality, demand, and competitor pricing. AI-powered dynamic pricing helps travelers find the best deals on flights and accommodations.
AI algorithms continuously analyze vast amounts of data, including historical trends, current demand, and competitor pricing. Based on this analysis, AI suggests optimal pricing strategies for travel companies. Dynamic deals for travelers allow travel platforms to offer dynamic pricing to travelers, adjusting prices in real time to reflect current market conditions.
Dynamic pricing allows them to optimize their pricing strategies and maximize revenue. AI can help balance supply and demand, leading to a more efficient travel marketplace.
AI-Driven Applications for Flight Forecasting
Flight delays and cancellations can disrupt even the most meticulously planned trip. AI-powered flight forecasting aims to minimize these disruptions by predicting potential issues and allowing airlines to take proactive measures.
AI gathers and analyzes vast amounts of data, including historical weather patterns, air traffic control information, and maintenance records. Airlines leverage these predictions to take preventive actions, such as rescheduling flights, rerouting aircraft, or performing pre-emptive maintenance.
OAG Aviation Forcast Algorithm
Companies like OAG (OAG Aviation Worldwide) utilize AI to analyze vast amounts of historical flight data, weather patterns, and air traffic control information. This allows them to generate highly accurate flight forecasts, predicting potential delays and disruptions before they occur.
Hotels Resource Allocation
Managing resources efficiently is crucial for any hotel’s success. AI-powered resource allocation helps hotels optimize room assignments and staffing levels to meet changing demand patterns.
Companies like Hilton or Marriott. These chains are implementing AI-powered solutions to optimize resource allocation. The AI analyzes guest data, historical booking patterns, and real-time occupancy rates. This allows for smarter staffing schedules, preventative maintenance for hotel rooms, and even predicting peak check-in times to ensure a well-oiled operation.
Fraid and Risk Detection
Unfortunately, travel can sometimes involve fraudulent activities like credit card scams or fake bookings. AI-powered fraud detection systems help protect both travelers and travel companies from these risks.
AI algorithms continuously monitor online booking activity and financial transactions. AI analyzes data points like booking patterns, location, and historical behavior to identify potentially fraudulent activity. When suspicious activity is detected, the AI can alert relevant parties (traveler, travel company) for further investigation or preventive measures.
Limitations of AI Technology in the Travel Industry
While AI holds immense promise for revolutionizing the travel industry, it’s important to acknowledge the limitations of current technology. Here are some key challenges to consider:
Complexity of AI Systems: Developing and implementing sophisticated AI algorithms requires significant expertise and resources. Travel companies may need to invest heavily in building or acquiring AI capabilities.
Data Dependency: The effectiveness of AI relies heavily on the quality and quantity of data it’s trained on. Limited or biased data sets can lead to inaccurate recommendations or perpetuate existing inequalities.
Explainability and User Trust: AI’s “black box” nature can make it difficult to understand how recommendations are generated. Building trust with travelers requires clear communication and explanation of AI-driven decisions.
Despite these limitations, AI technology is rapidly evolving. As the industry addresses these challenges and embraces responsible AI practices, we can expect even more transformative applications for travel in the years to come. [2]
Future of AI and How Will it Impact Our Business?
The travel industry stands poised for a significant transformation driven by advancements in Artificial Intelligence (AI). AI will go beyond basic recommendations, crafting itineraries tailored to your unique preferences, past experiences, and even your real-time emotions. AI-powered platforms will streamline the entire journey, automating tasks like booking, transportation, and reservations, leaving you free to focus on the adventure.
Furthermore, virtual assistants will become more than information kiosks, offering real-time translation, navigation, and local connections to immerse you in the culture. AI can even promote eco-friendly travel by recommending green accommodations, carbon offsetting options, and efficient travel routes, ensuring your adventures leave a positive footprint. The future of travel is intelligent, personalized, and seamless – and AI is the key that unlocks it.