The importance of AI has heightened due to rising traveler expectations all across the travel landscape. Artificial intelligence includes computer systems that handle intricate tasks previously limited to humans. These include problem-solving, decision-making, and reasoning.
Since its inception, AI has made significant strides. Travel companies are consequently utilizing more Artificial intelligence-driven tools and solutions for tasks, from trip planning to reaching the destination.
In this blog, Sky Bird Travel & Tours shares the new and exciting uses of AI in the travel industry — from chatbots and flight forecasting to data analysis, booking, and travel updates.
Uses of AI in Travel Industry
AI Chatbots
Travel businesses now use AI assistants to facilitate online bookings for flights, accommodations, and vehicle rentals. Typically, clients start conversations with chatbots by providing their travel details. After this, the bot scans booking sites to identify the best deals.
These chatbots are integrated into popular social media platforms, including Facebook, Skype, and WhatsApp. Major travel reservation platforms like Booking.com, Skyscanner, and Expedia have also adopted chatbots.
EXAMPLE:
Clients can activate the Skyscanner Chatbot by entering their destination or typing ‘anywhere’ to start chatting. The bot will suggest destinations with real-time prices based on search trends. When clients tell the chatbot the travel date, it will show them the cheapest flights to their destination.
Flight Forecasting
Flight forecasting is done by using algorithms to analyze historical price patterns for the best booking time. This benefits both travelers and industry players like airlines and hotels by enabling real-time pricing adjustments. For example, if Artificial intelligence predicts a surge in demand for flights during a specific period, airlines can adjust their prices accordingly. This helps them maximize revenue while still attracting customers.
EXAMPLE:
Hopper relies on algorithms and a vast flight database to predict optimal hotel prices and flights. When travelers track a flight, Hopper advises them on whether to make the purchase now or wait for a better price. The platform’s extensive database includes trillions of historic flight prices and live price feeds which allows it to generate accurate recommendations.
Data Analysis
The travel industry generates an immense volume of data, presenting a wealth of valuable insights about customer preferences, booking trends, popular destinations, and more. By leveraging AI algorithms, travel companies can identify what has worked well for customers in the past, predict future trends, and personalize offerings. It streamlines decision-making processes and enables targeted marketing strategies.
EXAMPLE:
The Dorchester Collection Hotel has utilized the Metis AI Platform to assess and analyze customer feedback surveys, reviews, and online polls. Through this analysis, they identified a lack of customer loyalty to their hotels. This insight presents businesses with an opportunity to develop improved solutions by recognizing these trends among customers.
Booking
AI Assistants guide users through the booking process with a seamless interface, providing instant booking confirmations and travel documents. It also offers real-time fare trends for the best deals for clients to easily modify bookings and benefit from increased flexibility.
These AI travel assistants also play a crucial role in managing cancellations and inquiries efficiently. They address common questions promptly, guide customers to self-help resources, and enhance booking completion rates. In cases of cancellations, the bots handle refund claims, suggest suitable alternatives, and provide detailed information about refund policies.
EXAMPLE:
Booking.com’s Booking Assistant is accessible through its mobile app, Facebook Messenger, and website. It efficiently handles user inquiries, addressing 30% of hotel-related questions within 5 minutes. It also enhances the user experience by managing common queries related to payment, date changes, transportation, pet policies, and more.
AI & Travel Updates
AI Technologies are experts at providing instant updates to ensure travelers are constantly informed during their trips. They share vital information like flight statuses, weather forecasts, and travel advisories which allows travelers to receive timely alerts on their mobile devices. By utilizing assistants, travel companies can elevate experiences by offering seamless communication.
EXAMPLE:
Instalocate is a widely used chatbot that offers users instant updates on flight status, hotel options, and trip conditions. By subscribing to Instalocate’s API, users can receive alerts regarding travel disruptions. It also assists in obtaining compensation when necessary.
The Future Of AI In Travel
By 2027, digital assistants are expected to dominate a quarter of businesses. The travel industry has been reaping the benefits of AI since the early 21st century, resulting in increased satisfaction and revenue for both businesses and travelers.
At Sky Bird, travel agents gain access to a wide array of tools and cutting-edge travel technology. Whether you’re a novice or a seasoned agent, you can sign up for our WINGS Booking Platform. It’s a state-of-the-art system designed to streamline travel booking and management, equipping agents with the tools and solutions they need to thrive in this dynamic industry. The newest feature, NDC content from 14+ top airlines, is also a testament to our constant growth in the rapidly evolving travel industry.