Market research company Euromonitor International predicts a massive increase in the use of artificial intelligence (AI) tools, such as ChatGPT, by travellers to plan their itineraries. The convenience and 24/7 accessibility offered by AI tools are driving this growth. Additionally, 97.8 per cent of travel executives surveyed believe that AI will impact the industry in the next five years.
Use of AI tools such as ChatGPT is set to boom and take the travel industry and the world by storm in the times to come. Artificial Intelligence (AI) could disrupt the travel bookings sector, where 66 per cent of bookings are already online in 2023, with mobile bookings accounting for 35 per cent of all online sales.
According to Caroline Bremner, Head of Travel and Tourism Research, Euromonitor International, the massive use of AI can be narrowed down to convenience and 24/7 accessibility. “Travellers can access AI tools from various devices, including smartphones and computers, at any time and from anywhere with an internet connection,” he said.
AI could disrupt travel bookings industry, which is already highly digitalised
The travel industry is already adapting. Expedia announced in April 2023 its collaboration with OpenAI, offering in-app trip planning powered by ChatGPT for iOS, as well as offering a plug-in to ChatGPT Plus users. The Expedia ChatGPT experience provides personalised recommendations, acting like a virtual travel assistant, delivering relevant results for hotels and what to do in destination.
Booking Holding’s Kayak and OpenTable also announced ChatGPT plug-ins. Other travel brands like TripAdvisor, GetYourGuide and Klook followed suit. Trip.com integrated ChatGPT into TripGen, its newly released AI chatbot that provides real-time assistance, itinerary planning and booking tips in the pre-trip stage. Hotels and airlines meanwhile are turning to generative AI for customer service, while automating menial tasks.
“More integration will inevitably follow so that ultimately the trip planning to booking stages will blend seamlessly, dependent on access to real-time booking functionality. Generative AI is only at the beginning of its journey, giving consumers what Airbnb called ‘the ultimate concierge’,” Bremner commented.
PLAN by ixigo is an intelligent trip planner built on OpenAI that delivers comprehensive itineraries and real-time destination information. The online travel platform has also launched a ChatGPT plugin, enabling conversational interactions with its search engine. Travellers can get travel destination recommendations based on their location, time, or weather conditions.
AI access to ‘real time data’ can be a game-changer
Bremner said, “The path of AI adoption will not run entirely smoothly as there are major concerns over consumer privacy with countries like Italy temporarily banning ChatGPT. There are also concerns over large language models being reliant on out-of-date internet knowledge, with a lag of two years in the case of ChatGPT with no access to current events or real-time information. However, access to real time data has been enabled thanks to a new plug-in with Microsoft Bing.
“The risks of amplifying misinformation, bias and inequality are all too real. Safety and security of consumers must be of paramount importance. Tech leaders like Elon Musk recently demanded a pause on AI development to avoid risks to humanity including possible extinction from superintelligence, stating that the AI race was out of control and time was needed to enable government policy to play catch up.
“Travel agents faced mass disruption due to the rise of online travel three decades ago, that led to mass store closures and job losses. Now, the sector is ripe for more disruption as generative AI accelerates automation of tasks across every stage of the customer journey, before, during and after the trip. With Microsoft planning to integrate generative AI into its Microsoft 365 Copilot software, it will become ever more prevalent in consumers’ daily lives and work whether we like it or not.
“As before, travel brands will take the rough with the smooth to navigate this new phase of digital transformation with a test and learn approach. However, only those that ultimately celebrate the human touch of travel and hospitality will thrive.”
