AI in the Travel and Tourism Industry: Facts You Should Be Aware of
Artificial Intelligence is a great replacement for human cognitive ability. Tasks that would have taken weeks, months or even a year, could be accomplished within mere days thanks to the high-performing capacity. Artificial intelligence has significantly increased efficacy and efficiency in many industries, especially in the Travel and Tourism sector.
Artificial intelligence not only saves time by computing and analysing large amounts of data quickly, but it also saves money as it reduces the possibility of human errors exponentially. It breaks down complicated processes and streamlines positive results almost immediately which is crucial for any business for maintaining a seamless service towards their clients.
Though AI has been dominating the travel and tourism industry for a while, as personalized travel assistance, self-check-in, data analysis and much more, however, there are some facts about it that everyone should be aware of. In the following article, we will be discussing exactly those facts and how it has helped reshape the game for the travel and tourism sector.
Data Analytics
The uses and functionality of AI in the travel and tourism industry are not restricted to only providing customers services. It ranges far beyond that when it comes to large data analysis. AI can effectively collect data from different sources, and analyze and interpret them to figure out the customers’ likes and dislikes so that travel agencies and hotels can provide them with services that specifically cater to them. It can effectively and efficiently calculate huge quantities of data to yield promising results which can be beneficial in coming up with pricing strategies and other business practices. Some AI software can gather more accurate insights into the current market trend and popular customer preferences by analysing client feedback through online polls, surveys, and reviews.
Customised recommendations
Surveys suggest that 50 per cent of tourists depend on smart travel apps for guidance throughout their journey. For a customer-centric approach, every company affiliated with travel and tourism needs to implement such recommendation and personalization technology into their system.
No matter the reason for your journey, AI-powered travel software can design it based on your wishes. So an investment towards AI to offer your clients customisable services can only be beneficial in the long run.
The sophisticated algorithm of travel software can recommend a travel experience tailored specifically to the clients by identifying user trends on social media. The data gathered from the social media trends are then compared to internal data collected from like-minded users. Natural language processing (NLP) and deep learning are used by travel recommendation platforms to help the travel industry in providing personalized services to their guests, like KePSLA.
Travel Rate Predictions
Flight and hotel rates are constantly changing depending on multiple factors like the time of the year, weather, economic and political stability, etc. One moment you will see a certain price for a ticket the next moment you may see it going higher. This can increase the necessity of incorporating AI-powered dynamic pricing tools into the travel provider system which can send clients notifications about the best deals and offers by monitoring the rates in real-time.
They use predictive analytics and algorithms to quickly sieve through the prices of the industry peers and rivals to provide clients with competitive quotes to attract more customers and establish loyalty among them. For instance, through analysing sizeable data points, supply and demand models, and other variables, Trivago offers its users the best deals on hotel prices.
Another great real-life example would be the innovative fare prediction tool developed by the team at AltexSoft which is based on the data gathered from the history of fare searches. These types of self-learning algorithms can examine demand growth, seasonal trends, deals, and airline specials to predict the future trajectory of fare prices.
All-rounder Travel Assistant
Chatbots on social media sites and instant messaging apps are interesting applications of artificial intelligence for the service industry for providing online assistance to consumers. Whether you are selling goods, clothes or travel experiences, customers appreciate quick responses and acknowledgements. However, it is not possible for the customer support representative to be available all the time. In such cases, chatbots can answer any queries and provide valuable information to consumers instantly.
For instance, Facebook Messenger has a few smart bot features. One of them is called Skyscanner which provides customers with quick assistance with their inquiries related to travelling and also accepts travel recommendation requests and unplanned suggestions. There is also a Dutch airline, KLM, that uses a Digital Genius algorithm to improve its customer service.
Disruption Management
Disruption management or in other words crisis management is mostly eligible for professional and business travel as its main purpose is to handle or manage real-world problems that travellers face during their journey.
With countless flights being cancelled or delayed every day, the risk of travel disruptions is high. To minimize losses to both travellers and travel companies, Artificial intelligence is helping to predict any disruptions or crises. This is where GDS or Global Distribution Systems like Amadeus comes in with their schedule recovery system to aid with that exact problem.
Listening via Social Media
Have you ever posted about your travelling dreams on your social media profile and then seen ads related to that a few minutes later? That is because of social media listening tools. The travel industry thrives on this feature of social media.
By scanning through someone's social media posts companies gather important insights about what an individual wants and prefers. Examine their pre and post-travel thoughts to figure out what issues they generally face during a trip. Some AI-powered travel software can reach out to potential clients with attractive offers and discounts by looking into the customers’ intent.