Benefits of the Use of Machine Learning and AI in the Travel Industry

By Mona Lavare posted May 25, 2021 07:58 AM

  


AI, specifically machine learning, is being used across the travel business to assist and improve data processing, saving organisations both time and money. But there is still work to be done to guarantee managers know the advantages, limitations and proper use cases of these technologies.

That was one of the overall themes shared in comments during the different travel conferences the past few years.

Sam Tilston, Founder of OSINT platform Effect Group, says that usually, organisations can do between 40 and 50 implementations. Only a few implementations can be failed, but, “I can guess if you are starting off, you’ve got no correct data, you’ve got skeptical people, and you are trying for a moonshot, it’s challenging. And because people are a little suspicious, they are not willing to let you,” he says. Artificial intelligence is changing all the time, making it more reliable and more winning as a business solution. In particular, companies in the travel industry are taking advantage of AI to perform various administrative and customer service responsibilities. Here, you will learn the uses and advantages of AI, and explain how it changes the way travel companies work.

Recommendation engines

This one is pretty simple, but the sophistication of advice engines is a huge factor driving up selling. Automated suggestions based on client data work well to improve sales, upsell, and keep loyal clients coming back for more.

Flight fare and hotel price forecasting

Many clients are getting savvy, using data instruments such as price forecasting applications to receive the best deal of flights and hotels. Numerous of these tools automatically observe the market and send users signals with the hottest items. 

Intelligent travel assistants

Users are frequently looking for convenience and frictionless assistance. Data analytics can help through virtual travel assistants. These digital concierge instruments use AI to automate specific tasks. The user interfaces with the bot through a chat discussion. This makes the booking method feel more like a chat with a personal assistant. Many users love this kind of easy, turn-key booking contact. As Artificial Intelligence becomes increasingly complex, we should expect this feature to become very successful. 

Optimized disruption management

What is automatic disruption control? It means resolving roadblocks that a tourist may face on their way to the destination. As the name implies, it’s a way to handle disruptions to the plan automatically. Interestingly, AI and predictive analytics changes now provide companies a way to prevent disorders before they occur. This real-time disruption control can take a new route to avoid bad weather or significant delays. Because such items are a major source of dissatisfaction tourists, experience on trips, finding new approaches to manage and even block disruptions is a considerable opportunity.

Customer support

Artificial Intelligence and chat-bots are an excellent way to streamline certain aspects of client service and support. Essential informational and transactional assistance can be offered through a custom programmed chatbot.

Tailored suggestions for most valuable customers

Loyalty plans are nothing new the travel industry, but Artificial Intelligence promises to improve these traditional plans through tailored offers for your most valuable clients. Using legacy data and client purchases, you can produce a solid model for giving your most loyal clients special deals.

Sentiment investigation in social media

This one is a bit out of the box, but it is crucial. Big data and Artificial Intelligence can help you track what clients are saying about your company on social media. This can assist you in identifying issues and resolve them to increase customer goodwill. Applying supervised learning and natural language recognition, data instruments can tap into the great wilderness of social media communication to identify opportunities for intervention.

Dynamic pricing in the entertainment industry

Set your prices to adapt to changing market dynamics is called dynamic pricing. This is a standard practice that has taken place for years in the entertainment industry. But, new rules have made it even more effective. Using ML for dynamic pricing can improve the effectiveness and profitability of such systems.

In-stay experience

Artificial Intelligence can assist even after the booking is made. Virtual representatives can be deployed inside hotel rooms, for instance. These instruments can be used to control room lights and electronics or verify through facial recognition for check-in.

As data science, big data, ML, and AI takes off, the travel business will have to adapt, developing and streamlining the way our clients travel. 

Bottom Line

With a wide assortment of cool shiny things that AI and ML suggest, it’s easy to get the spark and knuckle down with the “I want it all” thought. Learn that technology works well only when it is correctly implemented. View the following points and fuel those technologies in your company:

  1. Get quality data. They tell “garbage in – garbage out” which is harsh yet true. It’s essential how rich the data is, whether it is joinable, and how it is identified as data quality directly impacts the model's output. A data scientist might assist you in sorting those datasets out and build that whole scheme.
  2. Identify your product. Yes, that may seem like “thanks, Captain Obvious,” but actually, it’s the outset point of implementing any technologies. 
  3. Consider the development of your business. Combining AI is a tough call that needs excellent domain knowledge, excellent skills and the knowledge of legal limitations, which is why you could think of engaging engineers to assist, as it’s quite hard to get and keep the engineers in-house.
  4. Concentrate on what matters most. There’s a slight chance to win with “all-you-can-eat” approach. Some examples give only 7% improvement, but on a large scale, substantial progress brings better experience and revenues. On the other hand, concentrating on Artificial Intelligence chatbots might free up your staff and bring client experience to new levels.
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