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If you work in the travel industry, you already know that nearly everything it does is driven by the need for constant innovation. Historically, that need has been driven by a variety of market forces and inventions, from expanding road networks and advancements in ships and jet planes, to the dramatic changes forced by online booking and the COVID-19 pandemic.
Generative AI is the latest big innovative force and it can't be ignored. It's changing the way travel businesses, from large corporations to small businesses, do business with travel, and GenAI is accelerating an already competitive industry to new levels. Change in the travel industry is constant, and AI is accelerating it in ways even industry experts can't imagine.
Learning new things and transforming business operations always means a set of challenges and problems, but GenAI also represents a great opportunity that goes far beyond the simple “innovate or die” adage. This technology cannot be ignored. This is especially true for SMEs, who need to be early adopters of GenAI and do it the right way.
Related: The power of AI in travel: How artificial intelligence will shape the future of tourism
Travel Disruption: Your Trip Will Soon Be Powered by Generative AI
While some industries have been surprised by AI's intrusion into traditional best practices, this has not been the case in travel at all. Travel leaders have had to incorporate personalized marketing, predictive pricing, deep analytics, and e-commerce into their operations. But generative AI is adding powerful new capabilities in all of these areas, and even new ones that are exponentially more impactful.
Take online itinerary planning as an example. Online itinerary planning has been around for a while, but the existing versions seem almost primitive compared to what GenAI can create. Large companies like Kayak and Expedia have been experimenting with online itinerary planning for some time, with new products and features being added almost daily.
Let's take the example of planning a trip to a new destination: after entering a few well-chosen parameters and a few precise prompts about your desired travel experience, GenAI presents dozens of compelling possibilities, including those based on culture, cuisine, history, entertainment, etc. This level of personalization increases user satisfaction and conversion rates, making it a perfect example of the new opportunities brought about by AI.
GenAI offers the ultimate opportunity for travel professionals
However, this example only scratches the surface of GenAI's capabilities, and the sector within the travel industry where GenAI can be most useful is tour operators and destination management companies. These companies already wield significant market power, accounting for up to 40% of global travel spend, and GenAI has the potential to multiply that power.
Why? Take travel destination management companies, for example. They already have the experience, connections, and knowledge of local travel details that can make or break a trip, or turn a fun trip into a memorable, once-in-a-lifetime experience. Add the power of GenAI to the mix, and destination management companies become industry leaders in customizing individual trips for each customer. What's more, the technology allows destination management companies to easily expand their reach. This unique agility is simply unmatched by large travel companies or new travel tech startups. It also allows them to respond to new market demands much faster.
Additionally, travel employees tend to be natural innovators. Their first instinct is usually to create something that adds value to their customers in an amazingly powerful way. They also understand that as travel preferences change, customers don't want to go back to the old ways.
Related: How AI solutions can improve your travel and hotel booking experience
What we learned from hosting an AI workshop with travel industry leaders
My knowledge of these issues comes from my experience running a multi-day workshop on AI with travel industry leaders and U.S. Travel Association members from around the world, and the time I spent with them was a revelation for me.
Their reaction to GenAI is quite different than other industry leaders. They are not reacting with fear or caution at all, but rather embracing GenAI's capabilities with open arms. This is mainly because they were able to quickly see the potential and leverage this new technology. They are truly born innovators.
But while that openness is admirable, there are some important caveats: Learning about generative AI isn't easy. An open mind isn't enough; it's hard work. It's also painful to learn and adopt a new technology, especially one as powerful as AI. It needs to be done methodically and comprehensively, so here are some guidelines you can use as a potential path forward:
AI Advice for Travel Industry Leaders and Experts
Cultivate AI literacy:
The process of leveraging and leveraging GenAI begins with acquiring what I call “AI literacy.” This type of literacy is as fundamental and important as the reading and writing skills we all learned at a young age. There is a lot of information out there about GenAI, but it is important to know how this technology works and what it can do. That is the first step in adapting this technology to your specific needs as a travel industry leader.
Take a pragmatic approach:
First, set clear goals to guide you. This will give you the 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 start with using GenAI to streamline your operations, from early drafts of itinerary creation to data and opportunity analysis. The possibilities are endless.
Related: ChatGPT for Travel: Can AI Plan Your Next Vacation?
AI will not replace travel agents, but it will enhance their influence
Finally, it's important to understand that AI isn't meant to replace trip planners, but to amplify their magic. AI will handle the mundane tasks, allowing trip planners to focus on the essence of their job: creating unforgettable experiences and building meaningful relationships with customers.
Imagine a world where travel planners have more time to listen, understand, and fulfill the dreams of each traveler, making every trip special and unique. AI provides the tools and insights, but it's the travel planner's human touch, passion, and creativity that turns trips into cherished memories. Far from taking away jobs, AI will open new doors for travel planners, allowing them to shine and make an even deeper impact on the lives of the people they serve.
