As technology advances, many travel companies are adapting to change and transforming their business strategies. Artificial intelligence is now incorporated into the strategic investment plans of many of them.
Based on a 2019 CIO Agenda survey by Gartner, 14 percent of global CIOs have already used AI and 48 percent will in 2020. Throughout the years, the use of artificial intelligence techniques has increased in many different industries.
These industries include finance, e-commerce, banking, healthcare and medicine, and education. However, AI is expected to bring some of the most dramatic changes in the travel industry, up next we’re going to tell you more.
Artificial Intelligence Trend in Travel
Nowadays, people regularly use and rely on technology, especially smartphones. Concerning travel, people tend to plan, organize, and book their vacation or business trips via online applications.
With just a few clicks on their phones, they can search for travel information, including the top places to visit, the best price offered complete itinerary, and customer experience reviews.
In the travel industry, AI offers many opportunities to improve customer service, enhance customer experience, maintain a good reputation, and boost revenue. The travel industry can maximize most of the benefits from artificial intelligence.
According to McKinsey & Company’s study, AI has the potential to generate $400 billion in value in the travel industry. With the help of Artificial Intelligence, travel companies can serve customers effectively and efficiently in several ways.
Applications and Advantages of Artificial Intelligence
There are many reviews and comments posted online by customers who experienced a particular travel location or service. Many people consult online feedback to learn about the positive and negative qualities of a company or service.
Then, they use them as a basis for making a decision on places to visit or to avail of a service. Companies can conveniently track customer feedback by using the benefits of artificial intelligence in travel.
It is important that companies keep checking on what customers think about them. Any unfavorable review from a customer will do significant harm to the company’s online image, but praise can lift their reputation.
Data Processing and Analysis
Artificial intelligence aids in data gathering and analysis. Through AI, users can draw multiple conclusions about the customers, such as desired travel destinations, preferred tour packages, pricing techniques, and more.
Artificial intelligence can manage and interpret massive data to come up with a precise conclusion.
Accordingly, Artificial Intelligence supports businesses to improve conversions and create developed marketing plans through predicting the customer choices properly.
To satisfy consumer needs, AI tracks market trends and analyzes customer behavior.
The company can deliver personalized suggestions to travelers using artificial intelligence. AI analyzes the customer’s search habits and then systematically analyses these patterns to anticipate customer requirements.
AI technology also helps travel providers to give appropriate tips to their customers based on these projections. This makes it quicker than ever before to schedule a vacation.
Additionally, AI can provide real-time information when it comes to safety concerns, which makes for safer travel planning for customers.
Chatbots are AI-driven programs that create simulated text or voice conversations in different languages.
They facilitate interactions between a person and a machine, as well as a quick and comprehensive response at any time of day to resolve customer queries. Customers now do not have to wait in long queues to solve their concerns.
Automated chatbots allow companies to have 24/7 customer service. This results in more efficient output and productivity, and a lesser workload of the employees that helps to easily manage customer inquiries.
Artificial intelligence has brought a significant effect on each part of the travel cycle. Travel companies utilize the functions of AI to venture into a more advanced and innovative approach in doing service business.
Many people will benefit from AI’s contribution to the travel experience because it assists in many areas. AI is applicable in the upgrade of processing of booking requests, the improvement of self-service features, and more.
AI also makes traveling more accessible and convenient than ever before. However, it is important to consider that there are still few things AI cannot do – at least not for now. So you will still have to deal with humans in the short term.