The travel industry is one of the oldest and largest industries in the world. Tourism has undergone significant transformations through the advent of airplanes and the internet. AI might just have an even greater impact. In this article, I’ll share the latest trends I observe within the travel sector.
Some industries have experienced unprecedented growth in recent years, while others have been severely impacted. During the lockdown, global tourism dropped by over 80%, putting 120 million jobs at risk. This impact was seven times greater than that of 9/11. Thankfully, restrictions have been lifted, distance markers removed, and the Dutch leisure sector is back in full swing. In fact, many areas have already surpassed pre-pandemic levels, as demonstrated by studies from ABN AMRO and data from CBS.
More Guests, More Opportunities, More Challenges
The Netherlands, for instance, is attracting more tourists than before the pandemic. They’re staying longer and traveling from closer distances. It’s not just foreign tourists, though. Many Dutch residents have rediscovered their own country as a vacation destination since the pandemic. The expected improvement in purchasing power also positively impacts the demand for hospitality and travel. According to ABN AMRO research, Dutch people plan to spend more on leisure next year. The same study shows that “experiences” are more important to consumers than material possessions, with nearly 7 out of 10 millennials preferring to spend money on experiences.
However, the Dutch leisure economy also faces challenges, such as rising costs, staffing shortages, and digital transformation issues—much like many other sectors. Over the past years, I’ve had the opportunity to advise several tourism organizations and destinations on leveraging new technologies. A recurring theme is that many professionals in the sector, both policymakers and entrepreneurs, struggle to navigate the overwhelming range of new technologies and their practical applications. What to choose and where to start? I’ve previously written about the metaverse in tourism and destinations already exploring this technology. In this article, I dive into the unprecedented possibilities AI offers.
Farther Along Than We Think
AI is already integrated into many parts of the leisure economy, often without us even realizing it. For instance, I frequently use the Privium eye scan to avoid long queues at Schiphol Airport. Similarly, AI-powered baggage handling systems without luggage tags are in use at Eindhoven Airport. Travelers also rely heavily on Google Maps, packed with AI tools. Moreover, many businesses in the sector already utilize various AI-driven tools.
Technological advancements have significantly changed consumer expectations in recent years. Since 2013, the time spent on digital devices has grown by 70%, a trend accelerated by the pandemic as online interactions increasingly replaced face-to-face contact.
AI has already—and in my view, will continue to have—a tremendous impact on the travel industry. It enhances customer experiences, increases efficiency, and drives better decision-making and innovation. Various effective frameworks, such as the “Lifestyle Finder,” are being used in the industry to map out target audiences and customer journeys comprehensively.
Inspiration and Search
My travel preferences are always diverse. On the one hand, I take a week every quarter to completely unplug and relax. On the other, I go on active trips. For instance, this summer, I’ll spend a month at a Muay Thai camp in Thailand, and in the fall, I plan to climb seven volcanoes in Ecuador. Booking these trips was relatively straightforward. The boxing camp came recommended by several friends, and there are limited options for the volcano trek, making the choice easy.
However, planning a hiking trip in the Dolomites this May was a different story. With countless options for unique hikes and accommodations, I found myself overwhelmed. Every travel blog had a different favorite spot, and destinations promoting themselves as “bellissimo” ranked the lowest in trust for me.
Practicing what I preach, I turned to Google’s Gemini and crafted a detailed prompt for my ideal trip. Within 15 seconds, I received a fully customized week-long itinerary, including daily plans, optimal routes, hikes tailored to my preferences, and excellent accommodation suggestions. It even provided a checklist for hiking essentials. I was amazed—a perfectly tailored trip, free and delivered in seconds. Although I often travel solo, I now have a new travel companion: the chatbot.
The Bot is Hot
Google’s CEO has already predicted a future where chatbots replace traditional search. This trend is evident across the travel sector. Over 40% of millennials use AI-powered chatbots daily for travel-related purposes, and this number continues to grow. Companies like Booking.com, Skyscanner, and Expedia quickly adapted when ChatGPT enabled plugin functionality, allowing users to book trips directly through the chatbot. In the metaverse, 3D avatars now guide users through the booking process.
Beyond the Basics
AI applications extend well beyond booking. For instance, Hopper uses flight databases to predict optimal hotel and flight prices. It provides personalized recommendations on when to book flights and has sold over $600 million in tickets since its launch. Other organizations offer chatbots not only for bookings but also to assist guests 24/7 with personalized answers before and during their stay.
Enhancing Customer Experiences
Human contact remains essential, but successful experiments suggest many guests are open to tech-driven solutions. From AI-guided check-ins at hotels to robot-assisted navigation at airports like Heathrow, the future of travel is increasingly automated. Tools like PaxPulse even enable companies to monitor social sentiment live, responding promptly to guest concerns.
Striking a Balance
Despite AI’s potential, inclusivity must remain a priority. While some groups eagerly embrace new technologies, others may feel alienated. For example, older individuals or those less tech-savvy might struggle with digital-first approaches, such as QR code-based ordering systems in restaurants. Striking a balance between innovation and accessibility will be crucial for businesses moving forward.
Tourism is a prime example of how technology can create positive change, transforming customer journeys and business operations. With rapid advancements in AI, I’m excited to see what new possibilities emerge in the travel industry.
