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If you are in the travel industry, you already know that just about all the pieces you do is driven by a constant need for innovation. In the past, this need has been driven by a number of market forces and inventions, from more extensive road networks and advances in ships and jets to online bookings and the dramatic changes forced by the Covid-19 pandemic.
Generative AI is the latest major innovation force and can’t be ignored. This is changing the way corporations large and small run their travel businesses, and GenAI has supercharged an already hyper-competitive industry to a recent level of overdrive. Change in the travel industry is constant, and artificial intelligence is accelerating it greater than anyone can imagine, even industry experts.
Learning recent things and transforming business operations all the time presents a set of challenges and problems, but GenAI also presents an incredible opportunity that goes far beyond the simplistic aphorism “innovate or perish.” This technology simply can’t be ignored, and this is very true for smaller corporations – they should adopt GenAI early and make sure they do it the right way.
Disruption in the travel industry: Your travel will soon be driven by generative artificial intelligence
While some industries have been blindsided by AI’s intrusion into traditional best practices, this is not the case at all in the travel industry. Travel industry leaders have already had to include personalized marketing, price forecasting, in-depth analytics and e-commerce into their work. But generative AI adds powerful recent capabilities in all of those areas, not to say recent ones that have exponentially greater impact.
Plan your route online. It has been available for some time, but existing versions seem downright primitive in comparison with what GenAI is capable of making. Established corporations like Kayak and Expedia have been experimenting with online trip planning for some time, with recent products and features being added almost day by day.
Let’s use the example of planning a trip to a recent destination. Plug in well-chosen parameters and a few precise suggestions for the travel experience you wish, and GenAI will present you with dozens of exciting possibilities, whether cultural, culinary, historical or entertainment. This level of personalization increases user satisfaction and conversion rates and is a perfect example of latest capabilities powered by AI.
GenAI represents the ultimate opportunity for travel professionals
This example barely scratches the surface of GenAI’s capabilities, and the segment of the travel industry that may best profit from it is tour operators and destination management corporations. These corporations already account for as much as 40% of world travel spending, which implies they have a lot of market power. GenAI is greater than able to multiplying this market power.
Why? Take Destination Management Companies for example. They already have the experience, contacts and knowledge of local travel details that may make the difference between the success and failure of a trip, or turn a good trip into an unforgettable, once-in-a-lifetime experience. Add to that the power of GenAI, and they are industry leaders when it involves customizing individual journeys for their customers – plus the technology makes it easier for them to expand their reach. This sort of exceptional agility simply can’t be matched by larger travel corporations or recent travel tech startups, and it allows them to adapt to recent market demands much more quickly.
Moreover, travel agency employees are innovators by nature. Their first instinct is often to create something that adds value to customers in a surprising way. They also understand that when travel preferences change, customers simply won’t need to go back to the old way of doing things.
What I learned from conducting AI workshops with travel industry leaders
My knowledge on this topic is based on experience in conducting multi-day AI workshops with travel leaders and association members National Tourism Association from throughout the world, and the time I spent with them was a revelation.
Their reactions to GenAI are typically very different from those of leaders in other industries. They don’t react with fear or caution at all – as a substitute, they welcome GenAI’s capabilities with open arms, largely because they are quick to see the potential and are capable of leverage this recent technology. They are real innovators.
While this openness is commendable, it also comes with some necessary caveats. Learning about generative AI is not easy. It takes greater than just an open mind; there is exertions and difficulty involved in learning and implementing any recent technology, especially one as powerful as artificial intelligence. This must be done systematically and comprehensively, so I’ll provide you with some suggestions that you could use as a potential path.
My AI advice for travel industry leaders and professionals
Develop your ability to make use of artificial intelligence:
The means of using and benefiting from GenAI begins with developing what I call “AI literacy.” This sort of literacy is as fundamental and necessary as the literacy skills all of us learned when we were very young. There is a lot of knowledge about GenAI and it is necessary to concentrate on how the technology works and what it might do. This is the first step in tailoring it to your specific needs as a leader in the travel industry.
Take a pragmatic approach:
Start with a clear goal that translates into a metric. This frees up time and guidance so you may focus on what you do best – serving travelers. The next thing you could know is at what point in your journey you may profit from GenAI. I suggest you first use it to streamline your operations, from initial drafts of itineraries to data and opportunity evaluation. The possibilities are countless.
Artificial intelligence won’t replace travel agencies – it is going to increase their effectiveness
Finally, you should understand that AI won’t replace travel planners; this can enhance their magic. By performing routine tasks, AI allows travel planners to focus on the heart and soul of their work: creating unforgettable experiences and building meaningful relationships with customers.
Imagine a world where travel planners have more time to listen, understand and fulfill the dreams of every traveler, then make each trip unique and unique. Artificial intelligence provides tools and insights, but it’s the human touch, passion and creativity of travel planners that turn trips into treasured memories. Rather than taking away jobs, AI will open recent doors for travel planners, allowing them to shine brighter and make a deeper impact on the lives of the people they serve.