The Tech Trends Reshaping the Travel Industry

Airlines Use Chatbots to Automate Customer Service as Requests Soar

chatbot for travel industry

With 25 years of experience in hotel tech, I’ve learned the importance of centering solutions around the consumer. Let the big hotel groups invest and experiment; if something truly works, we can adapt it. Ultimately, it’s about delivering meaningful, consumer-focused innovations. Chat GPT has proven to be a remarkable door-opener for AI, showcasing stunning capabilities.

Similarly to Apple IMessage’s voice to text feature, HelloGBye converts the vocal request to text which then appears in the chat thread. The company claims that, within 30 seconds, its software can search the web for flights and hotels that fit a user’s preferences and messaged request. Mondee provides travel agents access to a wholesale tech marketplace for booking on behalf of their customers, as well as software products to manage their business. Mondee has launched an updated travel booking platform that includes a mobile app and a generative AI chatbot, marking a significant upgrade following its public listing a year ago. This initiative is part of a broader strategy to unify its brand and expand market reach, especially in Latin America, through strategic acquisitions. The updated platform offers enhanced features such as support for multiple languages and currencies, a shopping cart for group bookings, and a chatbot named Abhi that provides personalized travel suggestions.

  • The surge in demand is likely to be led by Saudi Arabia, with a 475 percent increase in travelers compared to last year and a 56 percent increase from pre-pandemic levels.
  • The most exciting part of adopting this new artificial intelligence is that we are still in the earliest stages of generative AI.
  • In support of that view, technology has been taking the user further toward voice input over the last decade.
  • Earlier this year, the company also partnered with an AI startup to automate responses to email-based travel inquiries.
  • The company is working on incorporating fresher data and more relevant information to improve the chatbot’s usefulness.

Still, we felt business leaders should know about this apparent discrepancy. Although we could not find evidence of data science expertise at Bold360, the company was acquired by LogMeIn for $50 million. LogMeIn surely vetted the company before purchasing it, and so there is at least somewhat of a high likelihood that its chatbot is legitimately based on natural language processing.

Layla has partnered with Booking.com to show hotel options and with Skyscanner to show flight options. Currently, it is starting with a fee sharing for these transactions as a revenue stream. However, with scale, the startup is also open to exploring more money-making avenues such as personalized advertising opportunities. Companies should be transparent about how AI is used in their apps, including data collection and processing practices.

Eco-Friendly Travel

Whatever helps take the stress out of planning travel especially with groups or families and brings in more joy when things go awry is not only part of the experience but well needed relief. The traditional travel agent’s role chatbot for travel industry has been eroded by search engines. AI agents can swiftly process complex travel requests, scour multiple platforms, and deliver optimized itineraries. My recent experience with a lost stroller in Athens underscored this.

A main catalyst in this evolution is the dominance of Gen Z and Gen Alpha in guest audiences. These generations are born into and accustomed to smaller devices and generative technology. Generative platforms or superapps meet their preferences for convenience, accessibility, and speed in navigating online.

chatbot for travel industry

Social media has a lot of negative sentiments around it, but it can be very useful when it comes to travel advice. One can find a lot of options for hotels, restaurants and transportation in various cities and countries by checking on Instagram or Facebook. A lot of ideas and inspiration comes from fellow travelers as do budget friendly places to stay and eat. With travel influences on the rise, social media is now full of options and ideas.

All companies listed were compatible with at least one mobile device. Instead, many companies are offering chatbot integrations on pre-built, heavily used messaging applications such as Facebook Messenger, Slack, Skype, and WhatsApp. This may further increase reach to millennials, the most frequent of social media users, and the most willing to travel than generations before them.

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Guests from the Gulf region and other Arab countries grew by 31 percent and 38 percent respectively. “AI voice technology is more likely to remain a complementary tool, adding value to the overall user experience rather than entirely replacing established methods,” he told PYMNTS. In addition to improving the speed of customer support, AI will allow 24/7 service availability, ensuring that customers can receive assistance at any time, no matter where they are in the world. “There’s a huge volume of interactions every day, and AI is key to managing that,” Keller stated. This increased efficiency not only benefits customers but also reduces operational costs for Priceline. To learn more about how travel companies’ use of the technology has changed over the year, PhocusWire is reaching out to some that were early adopters in hopes that their lessons would prove useful to others.

However, the Travel and Transportation industry has already successfully incorporated AI technology. Expert opinions also include reservations and concerns about the technology, such as the possibility that small companies could be left out of the equation. One of the biggest barriers right now is the technology’s limited data. Booking.com has yet to release anything powered by OpenAI the company behind ChatGPT, or Google’s Bard, a rival. However, sister companies Kayak and OpenTable were among the handful of companies, along with Expedia, that have partnered recently on plugins for ChatGPT.

chatbot for travel industry

At present, these chatbots simply don’t have the capabilities to adequately replace human expertise. But that fact doesn’t mean people won’t use them at scale, or that they possess great potential to transform how we get trip-planning information online—which raises questions about their reliability and development. In addition to the level of personalization already available in travel planning, it’s expected to become even more tailored to individual needs. Powered by AI and ML capabilities and integrated with wearable health measurement devices, mobile applications may track passenger health conditions and suggest safer in-destination activities and less crowded paths on the fly. Social media and travel review platforms have become immensely influential in recent years. A 2019 report showed that 86 percent of people (the percent grows up to 96 for Gen Z) get interested in a particular travel destination after they have seen other users’ posts online.

“The future of travel is here, and it’s powered by AI,” Keller remarked confidently. He believes that Penny Voice represents the first step toward a comprehensive AI-driven ecosystem where users will not only book trips but also manage their entire travel experiences through a single, intelligent assistant. The internet disrupted traditional travel bookings, making human travel ChatGPT agents obsolete as travelers elected to book flights and hotels through travel sites like those owned by Expedia Group, Inc. (EXPE 1.33%). Chatbots and AI assistants are now being deployed through social media sites like Facebook Messenger, Skype, and WhatsApp. They can give sample itineraries based on a range of criteria, but they are not able to make bookings yet.

AI in travel FAQ

Companies also have the option to purchase business subscriptions for $199 a month, according to its website. Mezi also claims to be an online concierge that users can chat with for trip recommendations, flight information, and hotel availability. In a 2017 study from 3CInteractive, 40 percent of millennials say they use a chatbot on a daily basis. Last month Coletta hosted a webinar about why trip planning startups usually struggle, detailing problems with the business model. The chatbot is located on the top of the “Explore” tab on the HomeToGo mobile app.

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Some companies had waited to introduce a chatbot and are now releasing tools that are more advanced than those we saw early this year. Others are going from simple ChatGPT plugin tools to more sophisticated chatbots. Microsoft released more information about the partnership with Amadeus for travel booking and what it’s doing with generative AI. WhatsApp is the main messaging service used by much of the world, so Meta has an opportunity to move further into travel booking territory. Tech experts touched on the potential during a session at the Skift Global Forum in late September.

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Historical investment performances are no indication or guarantee of future success or performance. We make no representations or warranties regarding the advisability of investing in any particular securities or utilizing any specific investment strategies. For information on use of our services, please see our Terms of Use. “We believe GenAI will lower our customer service costs per transaction over time and improve the customer experience,” Fogel said. That means online travel agencies, or OTAs, often pay to appear in those results via sponsored listings. Analysts with Morgan Stanley estimate that travel is among the top five sources of paid search revenue for Google.

chatbot for travel industry

You can foun additiona information about ai customer service and artificial intelligence and NLP. On the e-commerce domain, we are working on a tool that will generate at scale personalized landing pages, all powered by AI. And we are also introducing some new features for the professional users of some of our existing products, for example an AI-powered digital assistant for the users of our airline Revenue Management system. The travel company updated its Penny chatbot with AI-powered voice technology, using OpenAI’s GPT-4 API for real-time conversations.

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Intrepid is not involved in any decisions made by Skift’s editorial team. Wizz Air Abu Dhabi, the ultra-low-fare national airline of the United Arab Emirates, is launching an ambitious recruitment drive with its Go Pink campaign. The airline said in a statement that pilots and cabin crew from GoFirst, the latest Indian carrier to file for insolvency proceedings, are encouraged to apply. The airline, the second-largest carrier in Abu Dhabi by seat capacity, currently has 400 aviation professionals employed locally. “We encourage our aviation colleagues from Go First who want to continue their careers in a financially stable, ever-growing airline to apply,” Eidhagen.

It is apparent that outside chatbots, the field of AI and machine learning in the travel and tourism industry is still in its infancy. Compared to sectors such as banking, healthcare, and eCommerce, it’s clear that the travel and tourism industry does not have a very robust vendor landscape for AI-related solutions. This is likely because it is a relatively small sector, and most of the venture capital money and the focus of the startups are instead on larger sectors rather than on travel by itself. From AI chatbots providing assistance with your travel bookings and personalised recommendations during your travel planning, to the use of facial recognition software at airport security.

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Of course wherever there is AI, there is always marketing that can be optimized using it. “I think that’s the number one question for everyone to really stay up at night about,” Mekki said. A spokesperson at OpenAI acknowledges that ChatGPT sometimes produces inaccurate, biased, and harmful content, and therefore shouldn’t be used for serious advice right now. All products featured on Condé Nast Traveler are independently selected by our editors. However, when you buy something through our retail links, we may earn an affiliate commission. Join over 20,000 AI-focused business leaders and receive our latest AI research and trends delivered weekly.

Yeah, I think we’ll get there; it’s just going to take some time. I think the way we were doing it, though, was a very good way to do it because the only… The one other thing, though — what would be really bad for us — is if you price below the price you give to us. What’ll happen is people will use us to figure out which hotel they want, and then they’ll just click over to you and get a cheaper price. And that, in the end, we won’t then get the commission because they booked it with you, et cetera.

Meta has released a generative AI chatbot, called Meta AI, on WhatsApp, Instagram, and Facebook Messenger. Adarsh explores 10 ways in which technological advancements have left an indelible mark on travel. The sample size is small compared to the 19 million customers TUI served this year. For more details on TUI’s ideas, Skift interviewed TUI Group chief information officer Pieter Jordaan, who said TUI was “investing millions of euros” into generative AI applications. From Strasbourg to Budapest, enjoy holiday lights, festive streets and seasonal treats with the best Christmas markets in Europe. We believe that we can play an important role and help the travel industry players pay and get paid efficiently and safely.

chatbot for travel industry

This artificially intelligent chatbot application is designed specifically for text messaging; this artificially intelligent chatbot application presents hotel guests with personalized information and assistance. It can answer queries on over 1200 topics ranging from information about the nearest restaurants to the towel supply. Whether you’re looking for destinations, tourist attractions, new adventures, great deals or a place to stay, the sheer amount of available content is overwhelming. While a great travel advisor can help you sort through the noise, even the best experts may spend hours parsing all the steps to book your perfect trip. This is a truly revolutionary and exciting development for an industry that has been rather slow to change for decades. Not only will it be better for customers, but research shows that the companies that lean into using AI consistently have better financial metrics and see up to 50% more revenues.

When adding in the indirect and induced economic contributions of related activities, the travel and tourism industry accounts for 10.4% of the world’s gross domestic product (GDP). When it comes to customer service enquiries however (for example, seeking assistance, requesting refunds etc), a third (33%) disagreed that they would be happy for this to be automated, increasing to 47% for the over 55’s. A third of consumers (32%) disagreed that they would be happy for an AI assistant/chatbot to source/ book tailored trips during their holiday planning. The latest version of Bing, powered by ChatGPT, is probably the closest thing resembling that vision that’s been released to the public so far. The Bing platform includes a fuller picture of suggestions and links to accompany its results, although the links are often not helpful and there’s no booking capability.

Sentiment analysis is the process of mining text to detect positive, negative, or neutral sentiment. Sometimes referred to as emotion AI, it uses natural language processing and supervised machine learning to detect, extract, and study what customers think of a product or service. Hotels, airlines, and other travel businesses can use customer feedback analysis to personalize and enhance their services. As you ChatGPT App can see, since customers tend to leave a trail about their travel experience, brands can use this valuable data to improve their services and make better offers. TripAdvisor alone had 884 million user opinions and reviews as of 2020. This is where machine learning techniques, namely sentiment analysis and modern, powerful computers, can be leveraged to analyze brand-related reviews quickly and efficiently.

The same Accenture study notes that we can expect to see the number of companies seriously pursuing advanced AI double by 2024. New business models and fresh products will cover everything from customer acquisition to cutting-edge search engines and generative AI assistants that can help travelers book a completely unique trip from start to finish. Some companies like WestJet already use AI-powered customer service chatbots to parse general requests and decide when to involve a human agent.

The travel industry generally operates on thin margins, and this often means that live human support, though so desired by the customers, may not be sustainable. Studies have shown that integrating AI into customer support has allowed the resolution of up to 80% of problems with a single interaction, reducing the stress of human workers and creating a better experience for clients. It is not enough for OTAs and other travel providers to turn to automation and AI technology just to hop on the bandwagon. Rather, they must do so with a strategic eye for interconnectivity so that future travelers can do less website hopping and more globetrotting. Complex AI like ChatGPT now stands to ease further and personalize the travel experience.

AI solutions will need to adapt to growing user bases and data volumes. Designing AI architectures that are scalable and flexible, and utilizing cloud services and modular approaches to easily accommodate expansion will overcome this challenge. AI is set to transform roles and responsibilities within the workforce — not replace them — those who are proficient in leveraging AI tools are poised to redefine the job landscape. The real shift will be toward a demand for skills in AI utilization, indicating that the mastery of these technologies, rather than AI itself, is the key factor in shaping future employment opportunities. For some, it was a matter of honing what they had created to get more from their tools, both in terms of productivity and depth of insight. For others, it was about learning what works best — and what doesn’t — and focusing efforts on the former.

First, booking engines of OTAs will be integrated into conversational platforms. A customer might be able to book a trip via ChatGPT without leaving the platform that will serve as a one-stop shop for diverse activities – from creating cooking recipes, through generating photos, to writing poems and … student assignments. However, these platforms lack the professional expertise to manage the travel booking process which the OTAs have. The OTAs will provide this experience and their booking engines will be available in the conversational platforms. The OTAs will compete to be the default booking engine of the conversational platform and may pay the platform commission for each booking made through it.

But Booking.com itself accounts for 90 percent of the company’s total profits, so I wanted to know how Glenn organizes resources across the company — especially since he’s also the CEO of Booking.com. Voice communication and input is faster, convenient and more effective than the need to type. While so much has advanced in terms of computing input format to cater for all persons and their individual capabilities, the main stream will relaign to voice input as we move forward. Security is a top concern for many travelers, especially in airports and other populated areas. “The long-term vision for Emma is to establish her as a central, indispensable component of the GNTB’s digital communication strategy,” according to the tourism board’s press release.

The company says it has already increased its technology investment by 35 per cent year-on-year. It has upgraded its On the Go app and developed a new analytics platform for clients. Earlier this year, ATPI began to roll-out its Microsoft Teams integration that allows users to view, plan and discuss trips and to manage traveller profiles in the communications platform. Users of the Cytric Easy booking platform can also search, compare and book travel services through Amadeus’ own integration with the Microsoft 365 suite of tools. A few decades ago, it would take you a lot of time and effort to research destination and accommodation options, book a flight, make a hotel reservation, rent a car, and do a bunch of other trip-related activities. Today, with the help of machine learning and AI, you can use a one-stop travel platform to plan and book everything you need.

With the successful matching of photos and data, the app sent a message to the departure control system that passengers’ identity and flight status had been validated and they could be allowed to get on board. The services of virtual travel assistants range from simply advising on a travel destination to providing a local weather forecast to even booking a room/flight or renting a car for you. Travel chatbots commonly integrate with instant messaging platforms such as Skype, Facebook Messenger, Telegram, and Slack, to name a few.

The chatbot is designed to be user-friendly, enabling even those with limited technical expertise to utilise the tool effectively. It can be used across various hotel operations, including sales, marketing, and distribution strategies, to apply the insights gained from the data. Chatbot technology uses natural language processing, which relies on AI-powered models to accurately understand and respond. While big business for some time has embraced this tech, it has just started to make its way into managed travel programs. Many companies are trying to use AI chatbots (beyond ChatGPT) in different industries — especially in the consumer sector.