AI in the Travel Industry: A Shake-up in Tourism

AI in the Travel Industry: A Shake-up in Tourism

2025-05-19

The travel industry is constantly evolving, and like many other sectors, one of the key innovations in recent years is artificial intelligence (AI). This technology significantly enhances various aspects of the industry, benefiting both travel agencies and individual travellers. So, what innovations does AI bring to the tourism sector? Let’s explore.

AI in the Tourism Industry

Artificial intelligence tools are becoming increasingly in demand. Today, any company involved in tourism is likely using at least one AI technology, with market projections estimating the industry’s value at $1.2 billion in 2026.

In today’s world, travellers no longer need to spend hours planning itineraries, searching for attractions, finding suitable hotels or restaurants, or booking flights — AI can assist with all these tasks, providing a highly personalized experience.

Therefore, AI tools fundamentally improve customer service by offering tailored solutions.

5 Ways AI is Applied in Tourism

As mentioned earlier, AI applications are vast, so below, we highlight some of the most popular areas where AI is already transforming travel sector processes.

AI assistants

These tools are highly versatile, capable of handling various tasks, and, in some cases, even replacing the role of travel agencies. With these assistants, users can book flights, accommodations, and rental cars online.

From a business perspective, such tools operate through platforms like Messenger, Skype, WhatsApp, and Viber to instantly offer users solutions and personalize their experience. For example, WestJet uses Juliet, a virtual travel assistant that helps customers plan their trips.

Chatbots are also integrated into travel booking platforms such as Booking.com, Skyscanner, and Expedia, generating personalized tourism offers based on text-based queries.

Chatbots for customer service

These solutions not only reduce the need for human resources in businesses but also provide 24/7 customer support. They can answer frequently asked questions, direct users to relevant links, and, when necessary, offer detailed guidance on where to seek further assistance.

Data Analysis

From a travel company’s perspective, AI algorithms can predict flight demand. By incorporating new trends from different tourism industry segments, statistical models can provide highly accurate insights.

For instance, the Hopper tool uses flight databases to predict optimal flight prices in combination with hotel rates, allowing customers to receive personalized recommendations.

Similarly, businesses can leverage AI to process vast amounts of data, improving decision-making. For example, Dorchester Collection hotels analysed customer reviews and survey responses using the AI platform Metis to enhance guest experiences.

AI-Powered Communication

One of the most promising future developments is AI-powered real-time translation, enabling travellers to communicate effectively with people speaking different languages.

Security

At some airports and accommodation facilities, AI is utilized for biometric identity verification. Facial recognition technology analyses facial features, fingerprints, and iris patterns, as seen in solutions provided by Neurotechnology.

This method reduces fraud risks and enhances security by ensuring identity verification through unique biometric markers.

Final Word

Market trends indicate that the tourism sector will continue evolving alongside AI innovations. Businesses will further integrate AI-driven data analytics to manage traveller flows, while tools such as luggage tracking systems and voice assistants are expected to gain even more popularity.

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Sources: Epam, Mize, TechTarget, NCheck

AI in the Travel Industry: A Shake-up in Tourism
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