The number of air travelers is expected to grow to 8.2 billion in 2037, according to an analysis from the International Air Transport Association (IATA). Accordingly, the travel industry has embraced AI technology to enhance customer service and streamline operations, particularly in travel agencies and airlines. In this article, we’ll go through the key applications of AI in the travel and tourism industry.
AI chatbots improves customer support for travelers
AI-powered chatbots and virtual assistants are widely used to provide instant, 24/7 customer support. Using AI, travel chatbot assistants can field questions quickly and provide support for travelers, including:
- Answering common queries about flight details, baggage policies, and travel documentation
- Assisting with booking inquiries and itinerary changes
- Providing real-time flight updates and notifications for gate changes and delays
- Personalizing travel trip recommendations based on the traveler’s user preferences, behavior, and account history
- Predicting customer needs and offering proactive support to customers
A popular example of AI chatbot being used in the travel industry is KLM Royal Dutch Airlines’ BlueBot, which reportedly handles 60% of customer support requests. You can learn more about “BB” in KLM’s hilarious video announcement.
Beyond chatbots, AlloBrain helps companies, including travel agencies and airlines, to handle customer service calls with voice recognition and generative AI. For example, AlloReview lets customers describe their experience orally instead of using traditional customer satisfaction surveys.
Another example of AI in the travel and tourism industry is Hopper, which uses AI-driven predictive analytics to analyze future flight prices and recommend the best booking times so travelers can save money on airfare. Though not a chatbot specifically, Hopper does fit into the traveler experience by personalizing pricing for trips and optimizing the travel experience.
AI improves operations and pricing for travel agencies
Airlines and travel agencies use AI to improve various operational aspects, including:
- Smart baggage handling systems in airports
- AI-powered revenue management and dynamic pricing
- Flight forecasting and schedule optimization
- Employee management and scheduling
For example, Skyscanner uses AI algorithms to adjust flight prices dynamically based on demand, availability, and user behavior. Global travel technology company Amadeus uses AI to forecast travel demand and optimize resource allocation so airlines and hotels can manage travel bookings more efficiently.
On the operational side, Boeing has introduced AI into its Airplane Health Management system, which monitors aircraft performance and predicts potential maintenance issues to maintain operational efficiency and safety.
Embracing AI for a future-ready travel industry
The integration of AI into the travel and tourism industry is transforming the landscape, providing significant benefits and creating vast opportunities. AI enhances customer service through chatbots and virtual assistants, offering instant, personalized support and streamlining booking processes.
Predictive analytics and dynamic pricing models help travel agencies and airlines optimize pricing strategies and improve resource allocation, ensuring operational efficiency and maximized revenue. Additionally, AI-powered tools are revolutionizing travel planning, security, and customer insights, leading to a more seamless and personalized travel experience.
As the travel industry continues to evolve, embracing AI technology is essential for staying competitive and meeting the growing demands of travelers. The potential for AI to improve operational efficiency, enhance customer satisfaction, and drive business growth is immense.
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