Generative AI in Travel: Game Changer or Hype?

Excerpt from WIT

Industry leaders explore the real-world potential of GenAI in travel and hospitality

There was widespread speculation that generative AI could “revolutionize” the travel industry in 2023, but the concrete applications that GenAI proponents had hoped for were not emerging. . As we head into 2024, the question arises: Will this technology live up to expectations or not?

Some analysts have already labeled generative AI “overhyped,” predicting a reality test in 2024 due to unrealistic expectations, high costs and regulatory hurdles. are doing. This year, to gain insight into the real-world impact of generative AI on travel, Belvera Partners consulted technology experts from across the industry.

Mike Coletta, research and innovation manager at Phocuswright, disagrees with the gloomy outlook, highlighting the immense potential of AI to reshape the travel experience for both travelers and travelers. “The travel industry is in the midst of significant change, and there is tremendous potential for AI to transform the travel experience for both travelers and the travel provider ecosystem,” said Coletta.

“According to Phocuswright research, nearly half of travelers in most countries feel very or somewhat comfortable using GenAI tools to plan their trips. 13-22% of the total traveler population We're all using GenAI in some way. As the industry moves beyond the initial hype, 2024 will see us leveraging what we've learned so far to focus on the most profitable use cases and move away from those without a clear ROI. Avoiding wasting resources on use cases will be key. In 2024, travel companies are expected to accelerate their investments in generative AI applications. But the difference between winning use cases and losers will be the continued A trial-and-error process is required. At this time, an results-based approach is required to highlight the most relevant and impactful use cases in travel.”

Meanwhile, Bedsopia CEO and co-founder Haluk Kayhan emphasizes the need to address real operational challenges rather than pursuing solutions to hypothetical problems. “AI could revolutionize the travel industry in 2024,” Kayhan said, “but the industry will have to figure out where AI is needed most and try to solve problems that no one is aware of. should be avoided. Focus on the real pain points or high-cost/low-profit areas of your business, such as staff shortages, flight disruptions, sudden waves of cancellations, payment processing, and general operational inefficiencies. These are the areas where AI has the potential to drive the biggest changes most quickly, and perhaps meaningfully by 2024. AI technology needs to be essential at this stage, not just a gimmick. Let's be realistic – the whole world isn't going to change overnight – people aren't ready for it. ”

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