Major new reports from the World Travel & Tourism Council (WTTC) and Microsoft claim that artificial intelligence is set to revolutionize Travel & Tourism, with the organizations urging businesses to embrace AI and commit to “a digital future with unparalleled customer experiences.”
The first in the series of AI reports – “Introduction to Artificial Intelligence (AI) Technology: Guide for Travel & Tourism Leaders” – was released at FITUR Madrid last week and aims to redefine Travel & Tourism standards while calling on the sector for greater integration of such technologies.
Emphasizing the crucial importance of AI in revolutionizing travel, WTTC says it is committed to driving innovation and supporting the sector to embrace AI and other cutting-edge technologies with the aim of promoting sustainability and excellent customer experiences.
WTTC says it believes AI can play a pivotal role in delivering a tailored and enhanced experience throughout the traveller’s journey, now and in the future.
“This technology can empower personalized recommendations and marketing strategies by analyzing traveller data, optimising pricing strategies through real-time adjustments, and offering instant responses and fine-tuned interactions via sophisticated AI powered chatbots,” says the report, which also highlights AI’s capabilities for predicting future demand patterns, efficiently allocating resources, and providing valuable insights for governments and industry stakeholders.
“This contribution can be pivotal in promoting sustainability with efficient resource management by monitoring and minimizing environmental impacts, ensuring a more responsible and sustainable sector,” says WTTC.
“As we navigate the ever-evolving landscape of Travel & Tourism, AI emerges as a catalyst for positive change,” states WTTC President & CEO Julia Simpson. “The transformative capabilities highlighted in this report demonstrate that AI is not just a technological advancement, it is a strategic tool that can personalize the customer experience, drive sustainable improvements, and create real time pricing models.”
“Using Microsoft’s Azure OpenAI Models across the travel sector allows greater productivity for companies and drives a more personalized consumer experience,” adds Julie Shainock, Microsoft Managing Director Travel, Transport & Logistics.
Travel lagging
Despite the increasing examples of AI applications in Travel & Tourism, the report reveals the sector lags other consumer-facing industries in AI adoption.
“AI’s surge across various sectors last year is now a relevant force, and the Travel & Tourism sector must act now to leverage its impact,” says WTTC.
Challenges that must be overcome by Travel & Tourism businesses include a shortage of AI-skilled workers, limited AI infrastructure, and the absence of a formal ‘AI strategy’ in many business plans.
To that end, WTTC is urging Travel & Tourism businesses to embrace AI as a strategic priority, and to invest heavily in talent to foster collaboration between humans and AI.
Amidst concerns about AI’s impact on jobs, the report addresses the potential for job creation, recognizing that although AI will be disruptive, it will in turn generate new opportunities.
And in the quest for sustainable AI practices within the Travel & Tourism sector, responsible data management emerges as a crucial strategy, says the report.
Implementing measures such as data minimization, efficient storage, and responsible data disposal, will become pivotal for organizations seeking to minimize their carbon emissions when using new digital technologies, and reduce their AI environmental footprint significantly.
The report explores AI applications in society and business, emphasizing the need for safe and responsible AI system design in Travel & Tourism, signifying a milestone in the sector’s commitment to innovation and sustainability, and showcasing AI’s potential to shape a bright future for Travel & Tourism.
To read the report in full, go to WTTC’s Research Hub.