As per a report by the consulting firm McKinsey, travel is evolving. Ever since AI has become a buzzword in the tech industry, its cascading effect on service sectors like travel and hospitality is undeniable. 'Revenge' travel, is a term that emerged from the surge of tourists, who were ready to explore all corners of the world, post-COVID-19. Throngs of travel influencers began posting their travel escapades on platforms like Instagram and YouTube. 


There seems to be an increased focus on enhancing the 'experience' provided to the travellers. Whether it's food, culture, or exploring sites other than usual touristy spots, the focus is to make travelling an enriching experience that is rooted in authenticity and appreciation for the destinations. Travellers crave the freedom to explore at leisure and be exposed to unique aspects of a place. Hence the focus on employing AI in the travel industry broadly rests upon:



Improving Customer 'Journeys'

AI is set to change the travel industry by making the planning and execution, simple. Need an itinerary for a city? Just ask ChatGPT. From choosing destinations and booking accommodations to planning, AI can organise the entire travel discovery process. This promises to address the challenges in the industry, such as ensuring timely flights, managing baggage, and guaranteeing the availability of hotel rooms as per customer expectations.


Personalisation at Scale

Travel and hospitality are inherently personal industries, and AI can help tailor experiences to individual preferences. By analyzing historical data and customer behaviour, AI can deliver personalized recommendations and offers. This level of personalisation, which has been difficult to achieve manually, can enhance customer satisfaction and loyalty.



Current AI Applications in the Travel Industry


Operational Efficiencies

AI has long been used in optimizing schedules and resource allocation in the travel industry. For instance, airlines and hotels use AI to manage schedules, allocate rooms, and deploy staff efficiently. These applications are becoming increasingly sophisticated, ensuring that operational promises made to customers are consistently met.