At Your Service: Generative AI Arrives in Travel and Hospitality

Generative artificial intelligence (AI) can be an enormous boon to the travel and hospitality industries, particularly in areas like customer relations, schedule planning and back-end bookkeeping. Customer-facing roles show the most promise, with generative AI systems working to address traveler complaints or assist in tasks such as booking flights and accommodations.

However, it is easy for businesses in these sectors to overestimate generative AI’s capabilities and use it in roles for which it may be less than ideal. It will be up to travel and hospitality firms to evaluate the strengths and weaknesses of generative AI carefully to ensure the technology is deployed where it can provide the greatest benefit.

Generative AI Streamlines Airline Operations

Generative AI in Hospitality Prioritizes Customer Engagement

Minding Gen AI’s Limitations in Hospitality

Balancing Generative AI’s Benefits With Realistic Limits

Generative AI Streamlines Airline Operations

Airlines have ambitious plans to integrate generative AI into their operations. So far, these implementations have mainly focused on passenger engagement roles. This could soon change, however, as airlines explore how to leverage this technology in technical, back-end functionalities.

United Airlines recently introduced generative AI to provide passengers with weather updates.

The initiative aims to ease passenger frustration caused by flight delays. Seventy-five percent of these delays are due to weather conditions, according to the Federal Aviation Administration (FAA). United’s new generative AI software can text updates to passengers in near real time, a task previously handled by airline staff. The airline reports that the solution frees up weather and communications staff to focus on more strategic tasks, ultimately improving overall operational efficiency.

One-fifth

of aviation maintenance jobs may go unfilled by 2033, with generative AI serving as a potential stopgap.

Airlines are considering generative AI to support their mechanics and technicians.

The airline industry is currently facing a shortage of skilled aircraft mechanics and maintenance engineers. A recent study indicated that about one-fifth of aviation maintenance technician jobs may go unfilled by 2033. Some airlines are turning to generative AI to fill the gap. While these tools will not be physically turning wrenches, they can assist technicians in diagnosing and troubleshooting aircraft issues, offering potential solutions. Currently, aviation mechanics spend roughly 60% of their day troubleshooting, researching and preparing reports instead of performing technical work. Augmenting this paperwork with generative AI could help these mechanics become significantly more efficient at their jobs.

Generative AI in Hospitality Prioritizes Customer Engagement

In the hospitality sector, generative AI’s most promising use cases are in customer-facing roles, such as customer support and marketing campaigns. While future AI applications will surely expand to other areas, hospitality CEOs are currently concentrating their efforts on these departments.

Hospitality businesses are deploying AI to personalize customer interactions.

52%

of hospitality customers expect generative AI to play a role in customer interactions.

A recent survey found that 52% of hospitality customers believe generative AI will be employed for customer interactions. In addition, 44% think it will be used to improve guest engagement. However, experts caution that this technology should enhance rather than replace human interactions. Businesses’ overreliance on generative AI could lead to artificial-sounding messages that alienate customers. This could in turn harm brand reputation and potentially decrease profits.

Innovative AI tools are emerging to improve customer-facing travel services.

Business travel solutions provider Serko has partnered with digital human platform UneeQ to create Zena, an AI-powered digital travel agent. This innovative system integrates with ChatGPT and uses natural language processing to enhance the travel booking experience. Zena accesses a database of hotels, airlines and other travel content to suggest personalized itineraries, providing real-time pricing, availability and 24/7 support. Serko CEO Darrin Grafton emphasized in a news release that generative AI is essential for delivering these experiences, noting that travel’s personal nature is well-suited to interactions that mimic a human travel agent. The digital-human interface further enhances the personalized experience, bridging the gap between technology and human-like customer service.

Minding Gen AI’s Limitations in Hospitality

While generative AI has shown great promise in customer-facing applications, it remains a relatively new technology. Hospitality firms must strike a balance between the growing user demand for this technology and its current limitations.

Seven in 10 Americans would use AI to plan their travel.

A majority of travelers believe that using generative AI to create travel itineraries will be easier than planning on their own, according to a survey. For those who would utilize trip-planning AI, the most common applications include finding restaurants (56%); obtaining hotel recommendations (53%) and destination suggestions (51%); and planning activities and travel arrangements (50%).

56%

of travelers would use generative AI for restaurant recommendations.

However, travel agents warn that generative AI tools may not always be aware of the full range of options, particularly for less-popular destinations. The limited amount of data available for these locations can lead AI tools to make less-informed recommendations or even provide incorrect information.

Generative AI could potentially make travelers more vulnerable to scams.

Travel website Booking.com has reported a 500% to 900% increase in travel scams over the past 18 months. The site attributes this rise to the use of generative AI tools like ChatGPT. Scammers use this technology to craft authentic-looking phishing emails and messages. They also use generative AI to create fake hotel or vacation rental listings, posting them on legitimate websites like Booking.com and Airbnb. Their aim is to trick unsuspecting travelers into providing payments or disclosing credit card information.

Although these schemes are not new, generative AI allows scammers to amplify their scale and effectiveness. While travel sites are also deploying AI tools to detect and prevent scams, experts advise travelers to exercise caution. Before submitting payment information, travelers should verify details like contact information and telephone numbers, which scammers often omit.

Balancing Generative AI’s Benefits With Realistic Limits

Generative AI is revolutionizing the travel and hospitality sectors by offering innovative solutions that enhance guest experiences and streamline operations. From customer service to personalized marketing to operational efficiency, this technology is transforming multiple facets of the industry.

One of the primary applications of generative AI in travel and hospitality is in customer service. Generative AI-powered chatbots and virtual assistants can handle a wide range of guest inquiries and requests, significantly reducing the workload on human staff. These systems can provide instant responses to common questions, make reservations, and offer personalized recommendations and experiences.

However, businesses adopting generative AI technology in the travel and hospitality sectors must balance the rising consumer demand for this technology with its current limitations. While many travelers appreciate the convenience and efficiency of AI-powered services, others still value human interaction and personalized attention. There is a risk that generative AI could create a cold, robotic experience. This can be off-putting, particularly in the hospitality industry, where warmth and personal connections are essential. Therefore, businesses must integrate generative AI solutions in a way that enhances, rather than replaces, human touch points.