AI in the travel industry is evolving from a tool into a fundamental operating system, allowing for smarter and more efficient operations.
The Shift From Tool to Infrastructure
Artificial intelligence (AI), which was once a tool, is now a fundamental operating system for the travel industry. AI was traditionally used for isolated applications, like chatbots or fares forecasting. AI has been integrated into travel businesses’ core architecture. This integration represents a paradigm shift in the way that travel companies work and how they meet the expectations of modern travelers.
AI-Driven Operation
AI is now a key component in business operations. AI is embedded in every aspect of operations at leading companies to improve efficiency and intelligence. AI can now handle real-time cancellations and itinerary changes. It increases hotel attachment rates, ensures adherence to travel policies, and intelligently routes customers’ requests. This evolution does not only ease workloads. It also creates a robust business model which strengthens with every interaction.
The Business Case of AI Infrastructure
AI can be a powerful operating system. It speeds up service delivery, improves the consistency of the system, and reduces the friction that is associated with older systems. This ultimately enhances the experience for travelers and increases the bottom line. Travel management companies, for example, can automate booking requests and create passenger records with no agent input. They can also remember traveler preferences throughout interactions. This transformation results in shorter response times, reduced handling costs, increased compliance with service-level agreements, and personalized services. AI is not only faster but smarter. This allows agents to focus more on high-value tasks and customer engagement.
Scalable Personalization
Today’s travellers demand seamless, intelligent digital interactions similar to those offered by streaming platforms and ecommerce. AI can help travel businesses meet their customers’ expectations by providing dynamic, contextual and real-time personalized experiences. AI-powered system ensures travelers receive relevant service, such as seat preferences and meal recommendations, loyalty-eligible accommodation recommendations and policy violation notifications, often even before they ask. This approach is not only pleasing to travelers, but it also increases compliance rates, increases attachment rate, and enhances duty-of-care. These systems continually improve their effectiveness by learning from every interaction.
AI as an Operating system
AI as an operating platform reimagines the way travel businesses work. It is able to automate workflows for everything from cancellations and booking modifications, to itinerary changes and cancellations. All of this while seamlessly integrating with existing systems. Impact is immediate, as it reduces response times and improves service levels. It also allows for more context-aware interactions with customers. Behind the scene, email volumes drop, bottlenecks disappear and inefficient processes are eliminated. Travel companies can scale their operations with fewer employees.
Intelligent OS: The Return on Investment
An investment in a AI-powered OS is a strategic move that will yield tangible returns. Unified AI systems eliminate the need for multiple solutions and reduce operational overhead. The streamlined tech infrastructure reduces the time required for onboarding, minimizes the training requirement, and minimizes friction in operations. This transformation streamlines operations and creates new opportunities for innovation. In releasing their teams from old constraints, businesses can experiment with different service models, test loyalty campaigns, and unlock new revenue sources. AI can be used to save money and increase revenue.
AI and the Future of Travel
AI will be the infrastructure of tomorrow, and businesses that adopt it as a system operating system can gain a competitive advantage. They will be more resilient, agile and scalable to better meet travelers’ needs. Businesses that continue to rely on outdated systems are at risk of strategic liability. Travel leaders must decide whether to continue adding features to outdated systems, or to build a new operating system that is ready to take on the future of travel.
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