Artificial intelligence is revolutionizing the modern world. Today, almost every entrepreneur, regardless of industry, wants to implement AI (Artificial Intelligence) in their companies. And it’s no wonder, as this technology can significantly streamline many business processes, positively impact employee efficiency, and increase customer satisfaction.
It is no different in tourism, where AI has much to offer – which you’ll learn about by reading this article. If you want to find out the main benefits of implementing artificial intelligence in this industry and get to know examples of companies that are already using it – we invite you to read on!
What is Artificial Intelligence?
If you are new to the topic of artificial intelligence, the terminology related to AI may initially seem a bit complicated. Let’s start by answering the question: What is Artificial Intelligence?
For this article, we asked for a definition … artificial intelligence itself, specifically ChatGPT, which recently caused quite a stir in the market. Here is its answer:
Artificial intelligence, often called AI, is a field of science and technology that focuses on creating computers and software that can think, learn, and solve problems like humans do. AI can help us in various areas, such as medicine, science, business, and entertainment. The main goal of artificial intelligence is to mimic the human mind and abilities so that computers can perform tasks that usually require human intellect, such as understanding speech, recognizing images, and making decisions.
As you can see, AI did an excellent job generating the text, but that’s just a drop in the ocean of possibilities it offers.
If you want to expand your knowledge of basic concepts related to AI, we invite you to read the article: AI in a Nutshell: Everything You Need to Know in 2023.
Role of artificial intelligence in tourism
So, now that we know what artificial intelligence is. But what does it have to do with tourism? As it turns out, AI tremendously impacts this sector, confirmed by numerous studies and reports.
It is estimated that the value of the artificial intelligence market in the tourism and hospitality industry will exceed $1.2 billion by 2026, growing at a rate of 9.7% annually.
What is driving such significant growth? It is undoubtedly due partly to the many benefits of utilizing this cutting-edge technology in travel.
Key Business Benefits of Implementing AI in the Tourism Industry
- Improved efficiency: Automating tasks, such as booking assistance or automatic invoice sending, reduces operational costs and better utilizes staff working hours.
- Enhanced customer experiences: Providing personalized offers and services based on customer preference analysis increases service satisfaction and builds customer loyalty.
- Faster customer service: Chatbots and virtual assistants enable fast and accurate customer service available 24/7. Such solutions increase the chance of making a purchase and minimize the risk of potential customers seeking alternative services from competitors.
- Accurate forecasting: AI allows for analyzing large data sets in a short time. It leads to better forecasting of customer needs and adjusting offers to their constantly changing expectations.
- Better price matching: Artificial intelligence helps adjust prices according to current demand, increasing profits and avoiding losses.
- Fraud prevention: By analyzing patterns and behaviors, artificial intelligence can quickly detect and counteract payment fraud. It allows for immediate intervention and minimization of financial losses.
AI Applications in Tourism
Examples Let’s get to the heart of the matter, that is, specific examples of how companies in the tourism sector can use AI. Here are some exciting examples of harnessing this impressive technology for your business.
Chatbots
Let’s start with one of the most popular AI applications, chatbots. These virtual assistants play a crucial role in fast and efficient customer service. Companies that offer chatbots on their websites or apps can provide their customers with 24/7 support, which is extremely important today. Such automated assistants can help with site navigation, finding important information, performing simple tasks like canceling or changing reservations, generating invoices, and much more.
An interesting example of such a solution is Edward, a chatbot created by Edwardian Hotels London. This virtual assistant communicates through text messages, informing guests about hotel amenities, providing guidance, or assisting with complaints Edward can give support in over 1,200 different matters, covering issues such as service packages, payments, room selection, or hotel service orders. If the chatbot cannot help, it redirects the query to the appropriate hotel staff member.
Moreover, thanks to integration with other hotel systems, Edward can personalize service for each guest.
Are you curious about the results? Company Edwardian Hotels London reports that their innovative chatbot:
- Contributed to a 10-50% increase in room service sales,
- Served over 30,000 guests from 99 countries, communicating in 59 languages.
- In 2019, the chatbot handled 69% of all guest inquiries, saving approximately 95 working days.
Sounds impressive, doesn’t it?
Humanoid Robots
Chatbots are a relatively common and inexpensive way to support customer service, but what about robots that can serve customers in places like hotels or airports?
Such solutions are also gaining popularity, as they help avoid long queues at information desks or reception areas, thereby increasing customer satisfaction. With this technology, guests receive fast and efficient assistance, meeting their needs even during their ongoing journey.
An interesting example is a robot named “Connie,” introduced by the Hilton hotel chain. Connie uses artificial intelligence, specifically natural language processing technology, to provide real-time tourist information to customers. It’s worth noting that Connie, as a cutting-edge AI solution, continuously learns. It means that each interaction with a customer helps it learn and refine its communication skills, constantly improving its efficiency and quality of service.
AI-Based Recommendations
AI-based recommendations have become essential to the tourism industry, allowing for better personalization of customer offers. Artificial intelligence can analyze vast amounts of data, such as preferences, interests, and demographic information, to provide perfectly matched suggestions.
A prime example that utilizes this type of solution is TripAdvisor. Their system analyzes vast data from reviews, photos, and user comments to help travelers choose suitable tourist attractions, restaurants, or accommodations. Thanks to artificial intelligence, TripAdvisor can present the most accurate suggestions tailored to the individual needs of a specific user.
Using AI to develop recommendations also has advantages for tourism businesses, such as hotels, restaurants, and travel agencies. It allows them to tailor their offerings to meet customer requirements, increasing the chances of attracting interest in their services and building customer loyalty.
Intelligent Search Engines
Nowadays, people are inundated with vast information from various sources. That’s why contemporary customers expect a personalized approach to help them find offers tailored to their preferences.
The elements that undoubtedly require improvement on most travel websites are the search engines. Traditional search methods in tourism are inadequate for today’s travelers’ demands, especially when considering the expectations of younger generations.
Fortunately, AI also comes to the rescue here – specifically, intelligent search engines. With these advanced tools, travel companies can quickly and accurately provide customers relevant offers and information tailored to their needs. It leads to increased conversion rates, improved customer satisfaction, and enhanced efficiency of the entire booking process.
An example of such a solution is Qtravel Search, developed by Qtravel.ai. This intelligent search engine analyzes vast amounts of data, considering customer preferences, such as location, duration of stay, budget, and additional amenities, to propose the best offers meeting specific requirements.
Moreover, the tool features a function that remembers users’ choices, making the search process more precise and intuitive with each subsequent use. It benefits the current user and the next ones who utilize the search engine.
Begin Your AI Journey with Qtravel Search
As you can see, artificial intelligence plays an increasingly significant role in the tourism industry, bringing numerous benefits to entrepreneurs and their customers.
If you want to start your AI journey, we encourage you to try Qtravel Search – a ready-to-use product you can integrate into your company’s existing infrastructure within just a few days.
Contact us to learn how you can benefit from using this cutting-edge technology.