Is AI Changing Travel Businesses For the Better?
- Tyson Ross
- Aug 2, 2024
- 3 min read
AI has changed many facets of the travel industry. Travel websites like Travelocity and Priceline use it to personalize their search engines more effectively, hotels use it to create a more personalized experience for their clients, and hotel websites now have chatbots to help answer questions and manage pricing. Many hotels gather data about inventory and streamline operations by using tools to see "occupancy forecasts and productivity data for efficient team scheduling" (Michalis). In 2022, Iberostar, a Spanish hotel and resort chain, used AI implementation in its hotels to reduce food waste by 28% last year with a goal of being waste-free by 2025. (ibersstar.com) Companies use ChatGBT to create content and copy, while travelers find it helpful for exploring vacation ideas and creating itineraries.
AI sounds helpful and efficient, so you might be wondering if there are any downsides to AI within the travel business. I found that, yes, in fact, there are a few challenges. Firstly, many people enjoy speaking to humans over technology. Just recently, a friend of mine stayed at a hotel in Colorado that did not have a front desk. Everything was done through an app. When his key didn't work, he had nowhere to turn and became extremely frustrated. That is not something a tired traveler wants upon arriving. Secondly, AI needs to collect personalized data like humans do over time. The more information there is, the better and the more helpful it can be, but gathering information is a process. Privacy is the biggest challenge and concern for travers, which then concerns businesses. AI collects an enormous amount of data, and some people want those things to be kept private. Not knowing where the information goes or what it is used for can cause people to worry.
So, is AI better for businesses? I concluded yes. The downsides are minimal, and since the younger generations seem to prioritize traveling, companies should focus on the aspects these consumers find important like personalization, making a difference while being faster and more accurate. "According to American Express Travel's 2023 Global Travel Trends Report, 79% (of younger generations) see holidays as an important budget priority, and 84% would rather take a dream holiday than buy an expensive luxury item. Even though they may have less disposable income than the older consumer groups (Gen X and Baby Boomers), they travel more frequently. This is a clear indication of the importance of travel to these younger generations." (https://www.cbi.eu/market-information/tourism/trends). The generations, including my own, also know technology. We use it frequently and will continue to use it even more in the future making hotels and websites needing to meet our needs. But please, hotels and resorts, keep front desks! Seeing a smiling face when you finally reach your destination is quite nice and will never get old.
References:
(2024 January 31) What Trends Offer Opportunities or Pose Threats On The European Outbound Tourism Market
(2024 June 14) Bryan Michalis Use of AI In Hospitality Industry: 12 Practical Examples
AI Travel: What are the Pros and Cons For Travelers
(2023 July 31) Iberostar Hotels & Resorts Reduces Food Waste by 28% in the First Half of 2023 with AI Implementation in its Hotels
(2023 November 2) The Impact of AI on the travel industry/ McKinsey
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