Top 5 Advantages of AI in Travel Industry !

This blog shares a list of benefits that AI can draw in the travel industry


A study by Statista, estimated that the AI market revenue will rise from $3221.8 million in 2016 to $89847.26 million in 2025. A burgeoning popularity of AI applications everywhere is clearly evident from this huge growth.

Everyone in the industry is keen to know what Artificial intelligence is. “What is Artificial Intelligence”, is a popular question buzzing in the town these days. Seeing the present scenario, it wouldn’t be wrong to say that Artificial Intelligence is undoubtedly dominating the market space.

Its applications among all major industries just can’t be ignored. Just like many sectors that include eCommerce, healthcare, finance, banking, etc, Artificial Intelligence has NOW plunged into the travel industry too.

AI plunging into the TRAVEL INDUSTRY!

With growing dependency on smartphones, people today are more likely to plan their trips using smart online apps. They actually spend many hours on their phones to find the best place, best price, and the best itinerary.

This is where Artificial Intelligence comes into play! One of the major advantages of Artificial Intelligence is its ability to create personalized suggestions after analyzing large datasets and recommend these messages to the targeted travelers.

Are you still wondering as to, “What is AI technology”, and how is AI transforming the travel industry, then please read further.

“The world is a book and those who do not travel read only a page.”
Saint Augustine.

Here is a picture from Deloitte’s 2018 travel and hospitality industry outlook which shows how AI has pumped up the travel industry with its support.

Research by Deloitte estimated that the size of the global travel and tourism industry is $1.6 trillion in 2017. The travel industry contributes 10.4% to the world’s GDP.

How is AI transforming the Travel Industry?

Seeing the implementation of Artificial Intelligence for creating travel apps, it is apparent that the field of Artificial Intelligence in travel and tourism industry is still in its infancy.

Besides chatbots and online customer service, much of the impact of artificial intelligence on the travel and tourism industry focuses on rendering improved customer service and increasing customer engagement.

In this blog, I have listed out the major applications of Artificial Intelligence in the travel industry and some of the advantages of AI in the travel field. So, let’s have a quick look at how Artificial Intelligence is transforming the travel industry.


Using AI-powered chatbots allows you to provide a full-fledged customer service round the clock to your customers. Doing this reduces the load on the employees and helps in handling customer queries in a quick manner.

How are chatbots transforming the travel industry is another question that comes to your mind just after “What is AI technology”?

Chatbots can respond instantaneously at any time of the day or night providing comprehensive support for solving customer queries just like a human can do. With automatic chatbots driven by Artificial Intelligence, the customers NOW do not have to wait in long queues to get their issues resolved.

Have you heard about Hipmunk? Well, I am pretty sure that everyone knows about this travel search website. It has launched a free virtual travel agent powered by Artificial Intelligence known as Hello Hipmunk.

Hello Hipmunk allows you to combine your email and calendar for providing personalized travel recommendations. It has two major features: Hello Email and Hello Calendar. This travel agent can be accessed on Facebook too.

[Read:- AI And Chatbots are transforming the Customer Experience]


Improved Online Customer Experience

One of the most exciting applications of Artificial Intelligence in the travel industry is by assisting the customers online. While planning trips, the travelers may face a number of issues for which they need an instant solution.

The customers do not like to wait around, and AI-powered chatbots can improve customer experience by answering their queries instantaneously. Businesses can NOW operate 24*7 with the help of Artificial Intelligence. Perhaps, this is one

The use of advanced AI-powered assistants has totally changed the way the travel industry works today. AI-enabled assistants can carry out guests’ requests and offer real-time recommendations allowing the travellers to search for favorite destinations.

There is a lot of demand for Smarter rooms these days. IBM’s Watson Assistant which focuses on hospitality and automotive industries, can be very helpful for hotels to meet the growing demand for smarter rooms.

Unlike Alexa, Watson Assistant does not capture the user data. So, with Watson Assistance, the hotels need not worry about user data anymore. Hire developer to incorporate alluring AI benefits such as these in your business.

Artificial Intelligence is now used in the eCommerce industry too. You can read here to know more.

Also Read:- “Is the Advent of AI in eCommerce a Silver Bullet?


Data Processing and Analysis

Artificial Intelligence not only offers an improved customer service but also helps in data gathering and analysis. By analyzing comprehensive data, the users can draw various conclusions about the customers such as pricing strategies, favorite destination packages, etc.

AI can handle humungous data and analyze the same for drawing the right conclusion in a quick manner. Thus, by predicting well about the customer choices, Artificial Intelligence allows businesses to boost conversions and make better business plans.

A hotel chain has begun leveraging the advantages of AI to identify the needs of their customers. With the help of AI system, the companies can analyze and read thousands of customer reviews online thus enabling the companies to find out what matters to the customers.

Humans would surely take weeks to evaluate such a huge amount of data for making future predictions. But, with the implementation of AI, the companies can make strategic decisions about guest behavior and automate various processes for increasing business performance.

What are you waiting for? Hire AI developer to scale the overall profits of your business too. Read more on how AI is revolutionizing the travel industry.

[Read:- Is Artificial Intelligence Really Disrupting Travel?]


Online Reputation Management

You will surely be amazed and delighted after seeing this important application of Artificial Intelligence in travel. Needless to say but it’s true, people trust online reviews more than anything else.

Therefore, it is important that you keep a check on what customers say about your business. Any negative review by a customer can cause serious damage to the online reputation of your business.

By leveraging the advantages of artificial intelligence, the companies can now easily monitor customer reviews. AI enables the companies to know about social media comments, comments on products/services, and other mentions about the brand. All thanks to AI without which viewing customer reviews and comments wouldn’t be possible.

If you are still stuck on this question, “What is Artificial Intelligence and how it is advantageous for the travel industry, then just hang on for a sec. Let’s read further to know how AI is helpful for the travel industry.

By using this advanced AI technology, the hotels and airlines can find out the negative feedback given by the customers and then respond, for letting them know that you really value their feedback.

AI enables you to observe the latest trends, and provides the appropriate recommendations to your customers thus boosting sales and profits.

[Read:- Why AI and Big Data for Creating Personal Shopping Assistant App?]


Trip Planning

So, one of the major advantages of AI is that using AI, the brands can offer tailored recommendations to the travelers. AI analyzes the searching patterns of the customer and then meticulously examines these patterns for predicting customer needs.

Based on these predictions, AI technology enables the travel companies to offer suitable suggestions to its customers making it faster than ever before to plan a trip. I am sure after reading this, you will surely get to know about what is Artificial Intelligence usage in the travel industry.

Travel companies these days use AI render personalized trip planning services to its customers. What’s so special about it? It lets the users rate their preferences across various categories such as “Food & Drink,” “Nature,” etc. Later, the information is sorted for delivering personalized itineraries. As soon as you enter all this information, you will get a list of places to visit, activities to try, etc.


Final Words,

By now, I am pretty sure that you have got a clear idea of what is AI technology usage in the travel industry. AI applications are slowly but steadily plunging into the travel industry and transforming the whole travel world. This is why,

Research Analysts estimated the size of the global Artificial Intelligence in Travel and Tourism industry at around $1.6 trillion in the year 2017. When adding in the indirect and induced economic contributions of related activities, the travel and tourism industry accounts for +10% of the world’s gross domestic product (GDP), says a press release.