How Travel Businesses Are Leveraging Generative AI

How Travel Businesses Are Leveraging Generative AI

How Travel Businesses Are Leveraging Generative AI

Generative AI has been making headlines lately with the popularity of buzzworthy tools such as ChatGPT and DALL-E, leading everyone to discuss its potential. However, it is crucial to understand what generative AI is and whether these tools have practical applications in the tourism industry.

It is worth mentioning that although ChatGPT is currently one of the most well-known examples of generative AI, there are numerous other tools utilizing this technology. Moreover, despite the increasing adoption of AI in various industries, generative AI marks a significant advancement within the field. This technology is considered groundbreaking because it surpasses the conventional approach of identifying and organizing previous data and instead generates novel content by utilizing the same data.

DALL-E and Midjourney are excellent examples of generative AI tools that have gained immense popularity in the design industry. These tools are capable of generating distinctive images with just a few simple clicks, demonstrating the remarkable potential of generative AI.

Generative AI has also had a significant impact on chatbots, enhancing their functionality beyond basic, formulaic responses. With generative AI, chatbots can analyze customers’ queries at a more profound level and generate customized responses, improving accuracy and response rate. As a result, this technology has greatly improved the quality of customer service in various industries.

It is important to note that generative AI tools are not always available for free. For instance, while there is a free version of ChatGPT, OpenAI – the company responsible for developing the tool – has recently launched ChatGPT Plus, which provides unlimited access and additional features for businesses at a cost of $20 USD per month. Similarly, other generative AI initiatives, ranging from advanced chatbots to generative design layouts, may entail a price tag for startups and design firms employing this technology. Nonetheless, if implemented early and strategically, generative AI has the potential to provide a competitive edge to businesses.

The hospitality, MICE (Meetings, Incentives, Conferences, and Exhibitions), and attractions industries can benefit from generative AI technology by harnessing its design capabilities to develop innovative layouts and concepts that cater to specific needs such as security and congestion reduction. 

Generative AI can serve as a valuable tool for hospitality businesses looking to redesign their spaces, whether it’s to improve foot traffic to certain areas or to incorporate sustainability-focused elements. By inputting parameters such as square footage, location, target audience, and style preferences, generative AI can create multiple design options for a hotel’s interior and exterior. 

Generative AI technology can be leveraged by MICE and attractions planners to design layout concepts that prioritize traffic flow and minimize congestion and security risks. This tool enables professionals to be more time and resource-efficient by automating certain aspects of the planning process, while also providing a variety of event and attraction design options tailored to visitor demographics and venue characteristics.

By utilizing generative AI, businesses can create virtual tours in significantly less time than traditional methods, making them a cost-effective and efficient way to promote their facilities and services. For instance, hotels can use virtual tours to showcase their amenities and facilities to potential guests, allowing them to explore different rooms and areas online before making a booking.

While chatbots have already made an impact in the tourism industry by answering frequently asked questions quickly and efficiently, the emergence of more sophisticated generative AI tools is taking this technology to the next level. Instead of merely providing canned responses, chatbots are now capable of acting as personalized travel guides, offering customers customized itineraries, insider travel tips, and more throughout their trip.

Indeed, the ability of generative AI chatbots to provide a highly personalized experience for customers can significantly enhance their overall satisfaction with a travel company’s services. Moreover, using AI-powered chatbots can save staff time, especially during periods of staff shortages, enabling companies to provide a high level of service even with limited resources. Additionally, generative AI chatbots can be programmed to respond in a customer’s native language, improving accessibility for international guests and creating a more inclusive experience.

Generative AI tools not only cater to customers’ needs but can also provide valuable insights for a business’s long-term strategy by analyzing data from past interactions. Revenue management is one area where generative AI can be particularly beneficial, as it can help businesses optimize pricing, develop new revenue models, and automate dynamic pricing to offer relevant rates to customers. 

Generative AI is being used to advance predictive customer segmentation by analyzing patterns in past behavior and purchase history, allowing for the more accurate creation of dynamic customer segments. Moreover, this technology can leverage this information to generate personalized offers and other upselling opportunities, taking segmentation and targeting to a whole new level.

Ultimately, the success of generative AI in the tourism sector will depend on how effectively it can be integrated into existing workflows and processes, and how well it can work in tandem with human staff to provide exceptional customer experiences.

Because AI lacks the ability to detect emotions or subtleties in a message, human moderators remain crucial for ensuring appropriate responses. TUI employs a team to review and edit Louise’s replies, and they also supplement the system with extra information as necessary to ensure the accuracy of its results.

Although generative AI can quickly generate various design options, it may not take into account important factors that were not included in the initial prompt. For instance, it could create an aesthetically pleasing and eco-friendly hotel lobby layout while neglecting to include restrooms. This highlights the continued need for human oversight and consideration of all necessary elements.

While AI can provide quick answers, it is still essential for a human to oversee and moderate it. Ultimately, business decisions based on the information provided by AI need to be made by humans.

Indeed, the collaboration between humans and AI can offer a blend of advantages. The combined use of both human and AI can lead to the most effective outcomes, particularly in areas such as customer service, where the customer experience is critical.

Looking to delve into the potential of generative AI for your business, but not sure where to begin? Croyten offers consultancy and prototyping services that can help you develop a digital roadmap and experiment with new ideas. If you have any questions or inquiries, feel free to contact us at