According to Forbes “The travel industry is undergoing a profound metamorphosis, and AI is at the forefront of this evolution.”
AI-powered chatbots are streamlining the online booking process, from flight searches and hotel reservations to payment and baggage tracking.
Global changes in digital interactions are being compared to the internet revolution of the late ‘90s. We know it’s here, but we don’t yet know what it all means.
In analyzing the current AI inroads in travel, Forbes points to the industry’s primary weakness: the digital transformation is occurring on top of travel’s outdated and fragile infrastructure. Specifically, legacy GDS booking systems and operator back ends developed decades ago and potentially incompatible with lightning speed technological advances.
Recent disruptions, such as the CrowdStrike glitch, underscore the urgent need for immediate action to fortify and integrate the travel industry's technological foundation. These incidents impact airlines, hotels, banks, and support services, highlighting the necessity for a more robust framework.
The term 'AI' has nonetheless become ubiquitous, promising a future of unprecedented convenience and efficiency and changing traveller expectations.
AI-powered predictive analytics are being used to set prices and boost sales.
Google uses AI learning to help airlines optimize flight paths and reduce greenhouse gas emissions.
AI-powered image recognition also improves baggage handling and quickly locates lost luggage.
But what does it mean for advisors?
Harking back once again to the onset of the internet, the technological shift initially sparked fear and unease as it dramatically transformed the role of travel agents. Travellers gained direct access to booking platforms previously the exclusive domain of retailers.
Rather than being replaced, travel agents evolved into travel advisors.
Retailers specialized in areas where their expertise, personalized service, and ability to navigate complex itineraries added significant value.
According to experts, AI is no different. Applications can be used as a complementary tool, a chance to heighten personalization and find a niche in humanizing services.
While AI can efficiently handle complex travel requests, human interaction is still essential where resolving issues requires an attribute AI hasn't honed (yet): empathy.
"Using AI tools behind the scenes can help travel brands enhance — not replace — human talent and personal empathy," reports Skift.
According to Skift's report, travel brands can use AI to empower and enhance their customer service teams by combining tech and human touch.
A Leger report found that over half of Gen Zers and millennials prefer human travel agents over AI. Trust is a big factor, as 46% of them would only use AI tools from a travel agency or website they trust, while 41% don't trust AI for travel planning at all.
One area AI hasn't yet stuck its digital claws into is the onboard flight experience. Aviation File reports that completely replacing cabin crews with AI isn’t on the horizon (thankfully because this sounds like a post-apocalyptic novel in the making).
