Artificial intelligence (AI) has the potential to upend the travel and tourism industry — but not in the way many might think.
Rather than fearing or resisting the emerging tech in the travel space, the industry should embrace it as a strategic business tool that could drive innovation and positive change, according to the first in a series of AI reports from the World Travel & Tourism Council (WTTC) and Microsoft.
Our Analysis: AI Provides Customer Service Enhancement, Data Analysis, Personalized Recommendations and More
AI is here to stay, and WTTC is urging travel industry professionals to acknowledge and embrace its many potential benefits. According to the report, AI will play a critical role in shaping standout customer service, creating tailor-made experiences and promoting sustainable travel.
Additionally, generative AI’s capability to analyze traveler data; optimize pricing and create adjustments in real-time; and offer instantaneous responses and personalized recommendations via chatbot technology provide an advantage to tourism stakeholders. WTTC predicts that the technology could also provide valuable insights to local governments by predicting future demand patterns and assisting with resource management that could ultimately minimize tourism’s environmental impact.
As we navigate the ever-evolving landscape of travel and tourism, AI emerges as a catalyst for positive change.
Fast Facts: More Findings From the Report
– According to the report, the travel and tourism industry lags behind other consumer-facing industries in adopting AI technology.
– The report identified challenges that must be overcome by travel industry businesses, including a shortage of AI-skilled workers, limited AI infrastructure and the absence of a formal “AI strategy” in many business plans.
– WTTC and Microsoft recommend that companies invest heavily in talent to foster collaboration between humans and AI.
– Amid concerns about AI’s impact on jobs, the report addresses “the potential for job creation, recognizing that although AI will be disruptive, it will in turn generate new opportunities.”
– The full report can be found at WTTC’s Research Hub.
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What They Are Saying: AI Has Transformative Capabilities That Make it a Strategic Tool
“As we navigate the ever-evolving landscape of travel and tourism, AI emerges as a catalyst for positive change,” said Julia Simpson, president and CEO of WTTC. “The transformative capabilities highlighted in this report demonstrate that AI is not just a technological advancement, it is a strategic tool that can personalize the customer experience, drive sustainable improvements and create real-time pricing models.”
“Using Microsoft’s Azure OpenAI Models across the travel sector allows [for] greater productivity for companies and drives a more personalized consumer experience,” said Julie Shainock, managing director of travel, transport and logistics for Microsoft. “For travelers, [it has] the ability to drive more inspiration and personalized offers at booking, to [provide] tools to consumers to proactively assist them while in destination [and] to anticipate their needs with relevant information to improve their journey. For travel companies, [generative] AI is there to increase productivity, automate the predictable and allow our human-centric approach to the high-value moments in travel to shine more.”
Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
