The use of AI to predict travel trends and customer preferences

Authored by  Bernard Corraya, General Manager, Wego, India

Travelers have diverse preferences, with some seeking adventure, others leisure, and many interested in exploration. Despite these varied interests, all travelers share a common need for convenient booking options for accommodations and flights. In this evolving travel industry, artificial intelligence has become a game changer. AI mechanisms offer customized recommendations and streamline booking experiences, transforming how travelers plan their journeys. As the industry shifts to the digital era, intelligent AI agents not only simplify processes but also enhance customer satisfaction.

AI Trends Transforming the Travel Industry

According to a Statista report, AI in the global market is expected to reach $423.7 billion by the year 2027. This growth trajectory highlights a drastic transformative phase of travel industry that is not just adopting AI technology but rather integrating it deeply into every other facet of their processes. Here’s a look at some of the major AI trends that are presently revolutionising the travel industry and will continue to do so in coming years: 

Personalisation

One of the most prominent uses of AI is personalisation, in which algorithms are used to analyse user behaviour and preferences to provide customised information and suggestions. By analysing customers' historical travel history, browser behaviour, and even social media activity, AI can offer flights and accommodations that match their specific preferences.

Automation Tools

Another intriguing development is the incorporation of AI into automation and productivity applications. For example, artificially intelligent chatbots and virtual assistance systems are being integrated into customer service applications and workplace collaboration tools to improve communication and assist with regard to routine tasks.

Package Curation

AI may potentially use real-time data on travel rates, hotel availability, and local events to generate dynamic packages based on individual tastes and budgets. For instance, if a budget-conscious traveller appreciates experiencing local culture, AI may recommend taking a flight during the off-season along with a stay in a low-cost hotel near historical sites and public transit. This level of personalisation is expected to extend beyond simply giving multiple flight alternatives at different price points; it may actively build a whole travel experience to meet specific wants and tastes.

Operational Efficiency

AI significantly boost sustainability and operational efficiency within the travel industry while enhancing customer experiences. It optimises the allocation of resources by evaluating patterns in booking rates that help in customising hotel staffing, flight schedules, etc. Moreover, AI also helps in reducing wastage by predicting customer preferences and meal uptake in hotels and flights, ensuring that all preparations align with actual consumption. On the other hand, AI algorithms also optimise travel routes and assist in managing traffic.

These AI operational efficiencies not only foster cost savings but also help boost the sustainability efforts of the travel industry. As travellers prioritise environmental concerns, these benefits further drive a compelling narrative for the future of travel.

Concluding Compass

Once guided by traditional approaches and human hands, the travel industry today finds its compass amplified by artificial intelligence's predictive capabilities and algorithms. From crafting amazing getaways to optimising every travel operation, AI is significantly proving itself as the ultimate upgrade in the global voyage. This transformation is helping travel companies and enhancing the customer experiences while making their travel more accessible and worth experiencing. However, it is mandatory to remember that the successful integration of AI into travel apps and websites requires a combination of technical expertise, scalable planning, and ethical considerations. 

DISCLAIMER: The views expressed are solely of the author and Adgully.com does not necessarily subscribe to it.