What are the Opportunities and Challenges that Travel Brands Face While AI Adoption

Reshma M
4 min readJan 19, 2022


In modern times, Artificial Intelligence is evolving exponentially to become a dependable and lucrative business solution that every modern business is now embracing wholeheartedly. In particular, companies in the travel and tourism industry are leveraging the benefits of AI in tourism to perform a variety of managerial and client service tasks.

The capacity for Artificial Intelligence (AI) to accomplish tasks that earlier demanded human cognitive abilities made it especially valuable for people working in the travel industry. Also, Artificial Intelligence can help businesses save money and time while eliminating manual errors and completing complex tasks in no time. Given these advantages, many travel brands and hotels depend massively on Artificial Intelligence to present exceptional customer assistance and gain a competitive edge.

Opportunities for Travel Brands Using AI

The role of Artificial Intelligence (AI) in the travel and tourism industry arose massively over the past years. Also, this increased adoption of Artificial Intelligence opened the door for various possibilities for companies in this business sector. Below are some opportunities that travel brands can leverage by adopting AI.

1. AI-based Assistants for Travel Booking

With the widespread adoption of Artificial Intelligence, there is no need for travellers to physically visit travel agencies to book tickets or look for accommodation options.

Artificially intelligent assistants and chatbots have now replaced human travel agents to make it more convenient for customers to book flights and hotels. Also, by using chatbots, travel brands can offer a more personalised booking experience to their users.

2. Robots for Face-to-Face Client Assistance

With the advent of technological advancements and Artificial Intelligence, robots are becoming a crucial part of the travel industry. By using robots for face-to-face client assistance, travel brands can efficiently serve their clients and provide a more secure and hassle-free travel experience.

3. Personalised Travel Planning

With the ever-evolving client requirements, travel planning will transform unquestionably in the coming years. Also, many experts believe that the use of mobile applications will increase to get a more personalised generation of insights on end-to-end travel planning.

These mobile applications might comprise new options like tracking traveller health by combining with wearable technologies and suggesting secure travel places.

4. Data Analytics to Gain Valuable Insights

In this modern digital world, a large quantity of data gets generated per second throughout the travel industry. These data are the most precious assets for travel companies that help them gain insight into what works well for their clients. With the help of Artificial Intelligence, the travel industry can leverage data analytics to gain valuable insight to sort through these extensive data sets fast and accurately.

5. AI-based Applications for Flight Forecasting

Try to envision an innovative technology that assists you in finding the most suitable flight rates at the right time and equips you with detailed information on the most economical future flight prices. Some businesses have made that valuable feature a truth by introducing AI-based intelligent cost forecast applications into the industry.

6. Virtual Reality for Enhanced Customer Experience

Virtual Reality (VR) is an advanced technology that typically employs the VR headset to build a mock setting that can help clients gain a virtual experience of their hotel’s room quality, ambience, services etc., before checking in.

Challenges that Travel Brands face while AI Adoption

Below are some challenges that travel brands face while adopting Artificial Intelligence

1. No Clear Insights on Return on Investment

As the progress of Artificial Intelligence usually remains hidden, it can become challenging for travel companies to calculate the benefits it provides. This can further make it tough to predict Return on Investment and understand the concept of Artificial Intelligence.

2. Lack of Privacy and Defined Responsibility

Technology has become quite crucial for companies working in the online travel industry. Hence when there are any instances of software or hardware malfunction, it can become quite challenging to determine whose actions led to this software or hardware breakdown.

Also, before Artificial Intelligence, it was relatively effortless to figure out whether it occurred due to any client, manufacturer or developer. Moreover, as Artificial Intelligence is all about data, these software and hardware malfunctions can sometimes lead to data theft.

3. AI Still Holds Some Unsolved Bugs

As Artificial Intelligence is a relatively new technology, many people are still unaware of its full potential. It is no different when speaking of the travel industry as business leaders are yet to uncover this technology comprehensively, as there will be noteworthy transformations when the technology evolves. Therefore, this can become quite challenging for travel and tourism business owners to implement these Artificial Intelligence approaches as it demands a lot of research.

4. Various AI Development Approaches

The conventional travel business usually uses general phases such as analysing, testing, planning, designing and managing; the concept of Artificial Intelligence is different. Artificial Intelligence development is usually about identifying data sources and organising content to filter out the required data. This type of approach requires diverse aptitudes and perspectives, along with exclusive procedures.

The Bottom Line

In modern times, the existence and use of Artificial Intelligence (AI) in the travel industry is rising. Due to the comprehensive application of the latest technology, it is highly anticipated that AI in tourism will attain incredible heights in the future.

Furthermore, it indicates that tourism companies now leverage modern technology’s advantages to remain more efficient and productive. The clients will benefit immensely from this AI adoption, and at the same time, the tourism companies will have better control over all their business processes to make them more streamlined. However, you must never overlook the challenges prevalent in Artificial Intelligence adoption and look for ways to overcome these challenges to gain better business outcomes.