AI is making its way into every industry and now can be found in nearly every laptop and gadget. This is not science fiction but a reality. So, it’s no surprise that it has also impacted the travel industry.
Major travel events also include AI in the tourism industry on the agenda. For example, the participants in ITB Berlin, which is the world’s largest travel exhibition set for March will discuss various issues such as using AI agents in hotels and AI in bookings.
Beyond conferences, travel companies are rapidly adopting AI to enhance customer experience, automate processes, and increase efficiency. Some believe nearly all businesses somehow use such tools. The size of the AI market is likely to exceed 200 billion this year, so the tourism industry will be one among those using it to its benefit. In this blog, we will explore the ways AI can help travelers.
AI for Travel Agencies
In the past, we used to have apps searching for cheap hotels or tickets. Now as AI steps in the algorithms, we can recommend top accommodation and airline tickets based on your preferences and past-driven behaviors.
This does not mean the travel agency is out of business. Travel agents are using the tools to improve their services and stay competitive. Machine learning analyzes vast amounts of data, offering suggestions for flights, hotels, and activities that best match a traveler’s interests. Besides, AI-powered chatbots of platforms like Expedia and Booking.com provide customer support.
By integrating AI-powered booking engines, the agents can offer hyper-personalized travel packages. Imagine an AI tool that predicts the best times to book. It can make a list for a tourist agency showing when there is a better price “to buy now” or “to wait” based on historical price trends. Another AI benefit can be giving predictions, for example, during a peak season to adjust pricing dynamically.
How AI Changes Business Travel
AI also makes business travel smoother, faster, and more efficient. When planning a business trip having all details scrutinized helps you not to be late for an important meeting or miss a conference due to a canceled flight. AI tools can be instrumental in avoiding such problems.
Besides, rate comparison tools like Google Flights and Hopper analyze vast amounts of data, predicting price trends and helping travelers book at the best rates. Expense management has also seen a major shift with AI-powered platforms. They help with matching receipts with credit card transactions, reducing errors and streamlining reimbursements. Finance teams no longer have to manually sort through expenses, saving both time and effort.
AI also plays a crucial role in ensuring traveler safety. It monitors global events in real-time, providing alerts about potential risks like natural disasters or political unrest. This proactive approach helps companies keep their employees safe during trips.
Use Cases of AI in the Tourism Industry
One major innovation is AI-powered baggage handling. Tools like BagsID use biometric data and computer vision to track and identify luggage throughout a journey. This reduces the chances of lost baggage and of course, is good for airports as they are less unlikely to deal with human error. Airlines and airports are increasingly adopting AI-driven baggage tracking systems to improve operations.
Facial recognition technology is also changing airport security and immigration processes. AI-powered biometric systems will appear in airports soon. Abu Dhabi’s Zayed International Airport plans to launch this system later in the year to allow travelers to pass through security and boarding gates without needing physical documents. Some other airports are also testing document-free travel, where AI verifies identities through facial scans, reducing wait times and enhancing security.
Dubai is one step ahead in planning an AI-driven terminal at Al Maktoum International Airport. This $35 billion project aims to enhance passenger experiences using AI. The terminal will feature AI-enhanced check-in, security, and immigration processes, allowing travelers to navigate the airport more efficiently. Dubai Airport’s chief executive describes the new terminal as “like a small airport to navigate,” emphasizing its user-friendly design.
AI-Imposed Risks
The risks associated with AI have been raising concerns among its users. A number one issue is whether it may impact data safety.
A paper released by Organisation for Economic Co-operation and Development says despite its potential, AI also poses significant risks to the tourism industry. Data privacy concerns arise as AI systems rely heavily on collecting personal information. The risk of algorithmic bias and misinformation could lead to unethical market practices, such as price manipulation or misleading tourist recommendations. AI-driven automation also threatens job security, potentially displacing human workers in customer service and operational roles.
What to Expect with the Development of AI Tools?
The advancement of AI is so fast that sometimes it seems you lag behind if you haven’t checked some new features for a day. The AI tools penetrate into the travel industry bringing more efficiency and personalization. In the future, we can expect more advanced booking systems, predictive pricing, and more skilled real-time assistance through chatbots. Travel agencies should also start using AI to remain competitive and automate processes.
Business travel is also becoming more seamless, with AI-driven tools optimizing itinerary planning, expense management, and safety monitoring. Airports are integrating AI for biometric baggage tracking, facial recognition, and even document-free travel.
However, alongside these innovations, challenges remain. The widespread use of AI raises concerns about data privacy, algorithmic bias, and job displacement.