An estimated 790 million tourists traveled internationally in the first seven months of 2024, about 11% more than in 2023, though 4% less than in 2019, as per the UN Tourism data. This surge in demand calls for vibrant tech-driven travel and tourism agencies to further fuel its growth.
Today’s global economy is powered by a dynamic travel and tourism sector enhanced by greater connectivity, easy visa facilities, and the worldwide market opening. With the modern traveler progressively opting to make bookings on the go, technology has expedited the process while keeping the human experience at the center.
Tech-powered agencies will rule the roost
With digital nomadism defining modern global travel and the b-leisure trend gaining traction, technology has enabled people to make the world their workplace. Tech-empowered travel agents can thrive by leveraging mobile apps, personalized travel recommendations, or AI-enhanced tools. This drives not just efficiency but also allows them to maximize revenue while offering a seamless experience for their B2B and B2C clients.
For travel and tourism companies based out of the Middle East, utilizing technology to optimize the content creation process, and enabling content editing for Arabic language is crucial. This empowers them to target their core segment and showcase their fluent communication to specific micro markets, leading to better dividends. At the same time, companies must constantly refine LLM (Large Language Models) by incorporating additional languages and regions to enjoy a more comprehensive reach across their platforms.
For travel and tourism companies based out of the Middle East, utilizing technology to optimize the content creation process, and enabling content editing for Arabic language is crucial.
AI-driven personalization critical to driving traffic
It is a dichotomy of modern living that even as technology has taken over our lives, people still crave the personal touch. Personalization and bespoke travel itineraries are increasingly in demand among global travelers who seek connectivity and yearn to be seen and heard beyond the anonymity of the web.
In an AI-enabled world, Machine Learning (ML) has eased organizations’ back-office operations. Data and algorithms help predict human behavior, a competitive edge over others in the tourism sector. Cutting-edge technology facilitates seamless travel experience and augments customer service
AI-powered chatbots and virtual assistants (VA) have made it possible to provide 24/7 customer service, enabling companies to focus their valuable resources elsewhere as data-driven behavioral trends and forecasts serve to anticipate customer needs and to service them appropriately.
Maximizing revenue through tech
Next-gen AI tech enables travel agencies to streamline the booking process, foster loyalty through personalized service, increase efficiency, and streamline internal finance and HR processes. Integrating high-tech AI-powered applications also facilitates competitive, real-time pricing strategies integral to optimizing revenue.
In this highly competitive world, where most travel companies enjoy access to proprietary data, what sets one apart is how data is analyzed and behavioral patterns are read. This enables intricately personalized recommendations that will hit the spot with key audiences.
Next-gen AI tech enables travel agencies to streamline the booking process, foster loyalty through personalized service, increase efficiency, and streamline internal finance and HR processes
Challenges and opportunities for AI-driven tourism
While data is king in today’s tech-driven world, companies must be constantly clued into their digital assets to ensure they are up-to-date and match the day’s requirements. Travel and tourism’s biggest challenges will be ethical data practice and secure storage. And with a propensity for AI to lead the way, we must also safeguard against algorithmic bias. Travel companies must audit their AI-powered chatbots to ensure issues like race, gender, and socio-economic biases are mitigated for a more equitable service structure.
Personalized insights and recommendations are critical to the success of travel agencies in today’s highly competitive world. However, companies must be mindful that AI apps should use anonymised and pseudonymised data to minimize privacy risks. To further prevent data breaches and maintain the integrity of AI-powered services, there is also a need to keep an eye on API (Application Programming Interface)
As much as we stress technology and data-driven marketing strategies, we must also remember that people power the travel industry. At the heart of the industry’s success lies the seamless movement of human beings. The human connectivity enables travel agencies to succeed and stand apart from the crowd. Highly skilled and trained personnel will always be the last frontier when servicing clients and fire-fighting issues. Technology and human resources must be intrinsically linked to provide customers with an agile, personalized digital travel concierge service.
(As Chief Digital & Technology Officer at Almosafer, Qais Ammori leads a multifaceted team responsible for driving the company’s digital strategy and technological innovation)
Disclaimer: The views and opinions expressed in this Op-Ed are solely those of the author and do not necessarily reflect the official policy or position of TRENDS.