Artificial intelligence (AI) is rapidly transforming the way we travel—from planning and booking to how we experience a destination once we arrive. In fact, the global AI in travel market, valued at $81.3 billion in 2022, is forecast to soar to $423.7 billion by 2027. Whether it’s AI-powered chatbots handling customer service or intelligent algorithms offering personalised travel suggestions, AI is increasingly seen as a valuable travel companion.
And travellers are on board. According to a global survey of 6,000 people, only 13% said they wouldn’t trust AI to help plan a future trip, dropping to just 3% among Gen Z. Half of all travellers would happily use AI to find the best places to eat, while 54% of business travellers would let it make reservations on their behalf.
There’s even growing comfort with AI writing reviews or recommending entertainment venues. At a time when 56% of travellers are prioritising value for money, tools like AI-powered virtual assistants are viewed as helpful by nearly a third of travellers—rising to 42% among business travellers. It’s clear that AI isn’t just changing how we travel—it’s becoming a trusted part of the experience.
In this article, we’ll explore AI’s growing impact on the travel and tourism industry, the benefits of embracing this technology, and the real-world use cases that are reshaping the way we explore the world.
What is AI?
Artificial Intelligence (AI) is a branch of computer science focused on developing machines that can mimic human intelligence and behaviour. These systems are designed to think, learn, and make decisions—skills once exclusive to humans. By replicating our problem-solving and decision-making abilities, AI enables machines to perform tasks that traditionally required human intervention.
AI isn’t just one single technology. It’s a dynamic field made up of various evolving technologies, including machine learning, deep learning, and expert systems. As research advances, AI continues to unlock new possibilities across a wide range of industries, including travel and tourism.
In the tourism sector, AI has begun playing a pivotal role, revolutionising everything from how we plan a trip to the personalised service we receive once we arrive. By simulating human intelligence, AI offers smarter, more efficient solutions that enhance both operations and the overall traveller experience—making it an invaluable asset for the future of travel.
How AI is transforming the travel industry
Artificial Intelligence is rapidly becoming a game-changer across the travel and tourism sector, streamlining processes and improving the way travellers plan, book, and experience their journeys. From simplifying customer service to tailoring recommendations, AI has made travel more convenient and intuitive.
Its influence spans across different touchpoints in the industry. Travel companies are now using AI to enhance customer engagement, personalise services, and automate various operations—from intelligent chatbots that assist with bookings to facial recognition systems that speed up airport security.
Let’s take a closer look at how artificial intelligence is reshaping the travel experience across multiple real-life applications.
- AI assistants for travel bookings
Travellers no longer need to rely on physical travel agencies. With the help of AI-powered chatbots and virtual assistants, booking a holiday is now as simple as sending a message. These assistants are commonly found on social media platforms like WhatsApp, Facebook Messenger, and Skype, offering real-time assistance and tailored booking options.Major travel platforms such as Booking.com, Expedia, and Skyscanner use chatbots that allow users to search for destinations, compare prices, and receive alerts. For example, Skyscanner’s chatbot can suggest destinations based on current trends or budget, track flight prices, and redirect users to the website for final booking—all through a conversational interface.
- Personalised travel experience with AI
One of the most significant advancements AI has brought to the travel sector is the ability to offer highly personalised experiences. Today’s travellers expect more than just generic packages—they want suggestions and services tailored to their unique tastes and preferences, and AI makes that possible.Using advanced machine learning algorithms, AI can analyse large volumes of customer data, including travel history, online behaviour, and booking patterns. From there, it generates customised recommendations, such as preferred hotel types, destination ideas, or activities that match the traveller’s interests.
For example, someone who often books coastal getaways may be prompted with options for beach resorts, tropical islands, or snorkelling tours when planning their next trip. Travel companies can even work with AI development firms to create bespoke apps that enhance this personalised planning experience, making travel not just efficient, but enjoyable and memorable.
- Robots for customer service
The use of AI extends beyond the digital space into real-world customer service. At several airports and hotels worldwide, robots are now handling tasks that once required human staff. Whether it’s helping passengers navigate busy terminals or speeding up the check-in process, these AI-powered robots are improving efficiency and enhancing the guest experience.London Heathrow, for instance, employs robots to guide travellers across terminals. In Japan’s Henn-na Hotel, multilingual robots manage check-ins and answer guest queries. At Hilton McLean in Virginia, a robot concierge named Connie uses IBM Watson to provide recommendations on hotel facilities and nearby attractions—learning continuously from guest interactions to offer smarter answers over time.
- Smart flight price predictions
AI is also revolutionising the way travellers find the best deals. By analysing historical pricing data and market trends, AI can predict when flight and hotel prices are likely to rise or drop—empowering travellers to book at just the right time.Take Hopper as an example. This AI-powered app uses machine learning to track trillions of flight prices, offering personalised suggestions on when to book or wait. Beyond aiding travellers, these insights help travel providers adjust pricing strategies in real-time, improving profitability while staying competitive.
- Smarter insights with data analytics
The travel industry generates a wealth of data every second—from customer reviews to booking behaviours—and artificial intelligence plays a crucial role in turning this data into valuable insights.Hotels and travel companies use AI to analyse customer feedback, identify patterns, and refine their offerings. A good case in point is the Dorchester Collection, which uses its AI platform, Metis, to process guest reviews and survey data. This allows the hotel group to detect gaps in customer loyalty and adapt its services accordingly.
Benefits of leveraging AI in the travel industry
Artificial Intelligence (AI) is redefining the travel experience for both companies and consumers. By harnessing AI technologies, travel businesses are enhancing efficiency, improving customer satisfaction, and creating more seamless journeys from start to finish. Whether it’s simplifying trip planning, improving security protocols, or offering hyper-personalised services, the benefits of AI in the travel sector are both far-reaching and impactful.
Here are some of the key advantages of integrating AI into the travel industry:
- Enhanced operational efficiency
AI has significantly streamlined internal operations within the travel and tourism industry. Tasks that once required manual intervention—such as ticket processing, customer queries, and itinerary changes—can now be automated. This reduces the workload on human staff, minimises errors, and speeds up service delivery. By automating repetitive processes, companies can reallocate resources towards strategic and customer-facing roles.
- Improved customer service and engagement
One of the standout benefits of AI is its ability to offer fast, accurate, and 24/7 customer support through chatbots and virtual assistants. These tools provide real-time responses to booking queries, travel updates, or destination advice, allowing businesses to maintain constant communication with customers across various platforms—including websites, messaging apps, and social media.By handling common enquiries efficiently, AI-powered chatbots free up human agents to focus on more complex or high-touch interactions, improving overall customer satisfaction.
- Data-driven decision making
With vast amounts of data generated daily, AI plays a crucial role in turning raw information into actionable insights. Travel companies can use AI to analyse customer feedback, booking trends, and market conditions to make informed business decisions. These insights help optimise pricing strategies, develop targeted marketing campaigns, and anticipate future demand.In short, AI transforms data into a strategic asset—enabling companies to stay ahead of evolving consumer expectations.
- Enhanced safety and security
AI technologies are also improving safety and security measures across the travel ecosystem. From facial recognition at airports to fraud detection in online bookings, AI systems help ensure safer and more reliable journeys.Automated ID verification, biometric scans, and predictive maintenance of transport systems are just a few examples of how AI supports both travellers and service providers.
- Streamlined travel planning
AI simplifies the entire planning process for travellers. From choosing a destination to booking accommodation and arranging transportation, intelligent systems provide real-time suggestions based on availability, preferences, and budget.Features such as price forecasting and itinerary optimisation make travel planning more accurate, efficient, and stress-free.
Real-world examples of AI revolutionising the travel industry
Expedia’s AI chatbot – Romie
Expedia has introduced an AI-powered chatbot named Romie, designed to assist travellers in planning and managing their trips. Romie can provide real-time updates, suggest personalised itineraries, and help with booking adjustments, offering a more interactive and tailored travel experience.- Marriott International’s ChatBotlr
Marriott International employs an AI concierge service called ChatBotlr, which allows guests to interact with the hotel through messaging platforms. This service can handle requests such as ordering room service, checking in, and providing local recommendations, enhancing guest convenience and satisfaction. - Changi Airport’s AI facial recognition
Singapore’s Changi Airport has implemented AI-driven facial recognition systems to expedite passenger verification processes. This technology helps with faster and smoother check-ins, reducing waiting times and improving security, making travel more seamless for passengers. - Skyscanner’s AI-driven price predictions
Skyscanner, a global travel search engine, utilises artificial intelligence to predict flight prices. Its Price Alerts feature uses machine learning algorithms to analyse trends and historical data, providing users with insights into whether they should book a flight now or wait for a better price, helping travellers make informed decisions. - Hilton’s AI-powered room selection
Hilton has embraced AI to enhance guest experience with its “Hilton Honors” app. The app’s AI-driven feature helps guests select their rooms based on their preferences, such as proximity to amenities or specific room features, making the guest experience more tailored and convenient.
Expedia’s AI chatbot – RomieEnhance your travel experiences with AI-driven solutions at Holiday Tours
AI is revolutionising the tourism industry, enabling Holiday Tours to offer personalised, efficient, and seamless experiences. With AI-powered chatbots, recommendation engines, and predictive tools, we can tailor travel packages, optimise client interactions, and anticipate traveller needs.
At Holiday Tours, we embrace these technologies to provide smarter services, from personalised recommendations to seamless bookings and enhanced customer support. Our use of artificial intelligence ensures we exceed your expectations, delivering unforgettable travel experiences.
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