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If you're in the travel industry, you already know that almost everything you do is driven by the constant need to innovate. In the past, this need has been driven by a variety of market forces and inventions, from wider road networks and advances in ships and aircraft to online booking and the dramatic changes forced by the Covid-19 pandemic.
Generative AI it is the latest great innovative force and cannot be ignored. It's changing the way companies big and small do their travel business, and GenAI has boosted an already hyper-competitive industry to a new level of overdrive. Change in the travel industry is constant and AI is accelerating it beyond what anyone can imagine, even industry experts.
Learning new things and transforming business operations always means a number of challenges and issues, but GenAI also represents an amazing opportunity that goes beyond the simplistic aphorism “innovate or die.” This technology simply cannot be ignored, and this is especially true for smaller businesses – they should embrace GenAI early and make sure they do it the right way.
Disruption in the travel industry: Your journey will soon be driven by generative AI
While some industries were blindsided by AI's incursion into traditional best practices, this is not the case with the travel industry at all. Travel leaders have already had to integrate personalized marketing, predictive pricing, deep analytics and e-commerce into the way they do their jobs. But generative AI is adding powerful new capabilities to all of these areas, not to mention new ones that are exponentially more impactful.
Get route planning online. It's been around for a while, but existing versions seem almost primitive compared to what GenAI is capable of creating. Established companies like Kayak and Expedia have been experimenting with online itinerary planning for some time, and new products and features are being added almost daily.
Let's use the example of planning a trip to a new destination. Set a few well-chosen parameters and a few exact requirements for the travel experience you want, and GenAI will present you with dozens of exciting opportunities, be it cultural, culinary, historical or entertainment. This level i personalization it is driving satisfaction and higher conversion rates among users and is a perfect example of a new AI-driven opportunity.
GenAI represents the ultimate opportunity for travel professionals
However, this example barely scratches the surface of what GenAI can do, and the segment of the travel industry best positioned to benefit from it are Tour Operators and Destination Management Companies. These businesses already account for up to 40% of global travel spending, meaning they have a lot of influence in the market. And GenAI is more than capable of multiplying that market power.
Why? Let's take Destination Management Companies for example. They already have the experience, contacts and knowledge of local travel details that can make or break a trip or turn a good trip into an unforgettable, once-in-a-lifetime experience. Add to the power of GenAI, and they become industry leaders when it comes to tailoring individual journeys for their customers – plus, this technology makes it easy for them to expand their reach. This kind of unique agility simply cannot be matched by larger travel companies or new travel tech startups, and it also allows them to focus much more quickly on new market demands.
Additionally, employees in travel companies tend to be innovative by nature. Their first instinct is usually to create something that adds value to customers in extremely powerful ways. They also understand that when travel preferences change, customers simply don't want to go back to the old way of doing things.
Connected: How AI solutions can improve the travel and hotel booking experience
What I learned running AI workshops with travel industry leaders
My knowledge of these issues is based on my experience in leading multi-day AI workshops with tour leaders and members of National Tourism Association from all over the world, and the time I have spent with them has been a revelation.
Their reactions to GenAI tend to be very different from executives in other industries. They are not reacting with fear or caution at all – on the contrary, they are embracing the capabilities of GenAI with open arms, mainly because they quickly see the potential and are able to take advantage of this new technology. They are true innovators.
However, as laudable as this opening is, it also comes with some important caveats. Learning about generative AI is not easy. It takes more than just an open mind; there is hard work involved, along with the struggles that come with learning and deploying any new technology, especially one as powerful as AI. It must be done systematically and comprehensively, so I will offer some guidelines to use as a possible path.
My AI tips for travel industry executives and professionals
Develop AI literacy:
The process of using and capitalizing on GenAI begins with the development of what I call “Literacy of AI.” This kind of literacy is just as fundamental and important as the reading and writing skills we all learned when we were very young. There is a lot of information out there about GenAI and it's important to be aware of how it works. technology and what This is the first step to 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 will give you time and guidance to focus on what you do best – serving travelers. The next thing you need to know is where in the travel process to use GenAI. My suggestion is to first use it to improve your operations – from initial drafts of route creations to data and opportunity analyses. The possibilities are endless.
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AI will not replace travel agents – it will make them more influential
Finally, you must understand that AI will not replace travel planners; it will amplify their magic. By handling routine tasks, AI frees travel planners to focus on the heart and soul of their work, which is creating memorable experiences and building meaningful relationships with customers.
Imagine a world where travel planners have more time to listen, understand and fulfill each traveler's dreams, then make each trip special and unique. AI provides the tools and knowledge, but it is human touch, the passion and creativity of travel planners who turn trips into cherished memories. Beyond employment, AI will open new doors for travel planners, allowing them to shine more brightly and have a deeper impact on the lives of those they serve.