AI Technology Benefits Both Sides of the Travel Business

Travel & Leisure

  • Author D Edward Levy
  • Published February 7, 2025
  • Word count 822

A recent Statista report suggested that just over half of travel business leaders surveyed use some form of generative article intelligence technology to assist users in booking and making travel purchases. 48% of that group also indicated use of GenAI in travel research and recommendations. Just based on the mood of the industry, AI technology has definitely become a gamechanger for travel businesses and consumers who utilize the technology. Major technology companies have rolled out AI services such as Google’s Gemini and Apple Intelligence bringing the tech into the mainstream and travel providers are following suit with their own variations on the technology. Innovations with the AI sphere are rapidly evolving and can offer benefits to both the consumer’s side of the travel business as well as the operations end of the business. With rising costs and iffy economic fundamentals, the travel businesses are seeking any advantage that can create opportunities and save costs in a very fast paced industry.

AI Tech Interacts With Travel Consumers

AI technology continues to dominate the travel technology scene and most major industry participants are prioritizing investment and development of the infrastructure. For travel consumers, AI technology can be considered revolutionary with its highly functional engagement abilities. For travel consumers, the 3 stages of travel purchasing are:

Research and discovery

Scheduling and planning itineraries

Finalizing bookings and purchases

AI backed technologies can accelerate and assist in all three stages, offering a wide range of convenience and benefits to travel consumers. Researching destinations and experiences can be completed easily through simple voice or keyboard input requests and AI technology can quickly display results and engage with the travel consumer on preferences and choices. Using online APIs and other connectivity platforms, AI tech can establish reservations and schedules with a few simple commands, providing complete end to end itinerary and pricing in a matter of seconds. Travelers can also use the technology to complete bookings and finalize payments of purchases directly with the AI assistant. For travel businesses, the quick and convenient access to information and ease of purchase are 2 key factors that can positively impact purchasing decisions.

Efficiencies Behind the Scenes

With travel volumes shifting back to growth, travel businesses are seeking technologies that can create efficiencies in operations that will manage rising costs and drive business with enhanced marketing efforts. Machine learning technology can provide significant business benefits in the backend by analyzing operations and monitoring resource usage. Using reference data, AI technology can analyze and develop strategies for more efficient operations and better use of resources. Operational needs such as fuel use, food and beverage inventories and facility energy consumption are just a few of the line items that can be analyzed and managed by AI based technology. Travel providers depend on optimized marketing to generate bookings and AI technology can quickly process vast amounts of data inputs and offer strategies and recommendations to pinpoint marketing efforts and perfect product and service offerings. The push for document free travel and streamlined passenger process and check-in can also be positively impacted by AI powered solutions.

AI Can Reduce Service Gaps

One of the biggest ongoing challenges for the travel industry is hiring entry level, frontline personnel that work in customer facing departments. Global lockdowns during the Coronavirus pandemic caused seismic changes in the travel industry and lack of enthusiastic and qualified candidates remains a lingering effect for travel businesses. Unfilled vacancies and reduced teams are leading to quality issues and service gaps along the frontlines of travel providers and reputational marketing is a core vehicle for any travel business. AI can assist by rapidly and effectively training new hires, delivering essential skills and habits they need to be successful from day one. hospit-Ai-lity, a new project from TravelTechnologySolutions.net, is designed to provide critical onboarding and transition support, training and evaluations that ensure new hires understand their duties and what is expected of them. Faster and more effective training can reduce and eliminate those costly service gaps and maintain elevated experiences for guests, positively impacting essential reputational marketing opportunities.

The Travel Industry Quickly Adopts Innovations

Travel has always been a technology driven business and the industry is very quick to adopt and embrace new innovations that provide better service to clients as well as creating efficiencies on the operational side of the business. While AI has become a major buzz term in technological circles, the infrastructure can provide real benefits to the travel industry with technologies that can enhance traveler experiences, before, during and after the trip. On the operational end, machine learning systems can quickly analyze and strategize to better use resources, saving travel businesses precious time and money. AI is not a new technology but only has come into the spotlight and has shown real purpose in the travel industry. For 2025, travel businesses will continue to explore the use of AI and the technology will continue to evolve to better serve consumers and businesses.

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