Tapping AI in tourism

ANYONE who isn’t living under a rock has surely heard repeatedly of the term AI in the last few months. But what is AI? An acronym for artificial intelligence, it refers to the simulation of human intelligence with the use of computer systems. The use of the term has surged particularly since the launch of ChatGPT, an open-source chatbot by OpenAI, in November 2022. Even though artificial intelligence has been around for decades, with the term officially coined in the 1950s, ChatGPT’s popularity has brought this term to every home. The number of users grew to 100 million in three months, with more than a billion site visits every month. ChatGPT’s popularity can be attributed mostly to its capability of processing natural language and the ability to have human-like conversations with the chatbot, rendering solutions, composing articles and assisting humans in day-to-day tasks.

In the words of Elon Musk, “we are not far from dangerously good AI”, and one cannot help but wonder if AI will prove to be a boon or a bane for humanity. It has left public opinion divided; on the one hand, people believe it will lead to widespread job losses. On the other hand, advocates believe AI will only make way for new jobs by automating mundane tasks and allowing us to take on bigger, qualitatively better roles. Regardless of which side one is on, it is worth acknowledging that AI has the potential to transform many industries for good. Some sectors such as automotive and cybersecurity have already started to see the impact of AI. Another industry that is starting to use AI is the tourist trade.

Like any other industry, tourism can also benefit from AI by improving customer experiences as well as saving costs for businesses. AI can help businesses offer more personalised and sustainable travel options by using technologies such as machine learning (ML), natural language processing (NLP), and computer vision to understand and serve customers better, reduce costs and waste, enhance safety and security, and promote sustainable practices. However, there are challenges that AI poses, such as data privacy issues, probable job losses and a possible lack of personal interaction with customers. Therefore, businesses need to be careful and thoughtful about the potential impacts of AI on their customers, employees, and the wider community and environment, and use the technology responsibly and ethically.

Personalisation in tourism

With travellers increasingly expecting customised experiences that cater to their unique preferences and interests, personalisation has become a crucial aspect of the tourism industry. AI can now enable tourism businesses to offer more personalised experiences, from tailored recommendations to customised travel itineraries.

AI algorithms can utilise vast amounts of data to recognise patterns and preferences that enable businesses to provide personalised recommendations to customers. This data needs to be fed to the AI bot, which “learns” over time and betters itself. For instance, hotels can utilise AI technology to suggest local activities and attractions that align with a guest’s personal background, interests and travel history.

Chatbots and virtual assistants are other great examples that use AI for a better customer experience. These tools can provide travellers with instant and personalised recommendations on everything from restaurants to activities to local transportation options. Chatbots can also be programmed to help with travel planning, such as recommending the best time to visit a particular destination or suggesting the most efficient route for a multi-stop trip.

Cost savings

The tourism sector has begun to use AI to cut costs and boost productivity. Technology advancements like AI that can assist tourism businesses in streamlining operations, automating some tasks and making decisions that are driven by analytics could ultimately result in cost savings.

Take predictive maintenance powered by AI, for instance. By examining data from sensors and other sources, AI algorithms can forecast when maintenance issues might arise and alert staff beforehand. This can help avoid expensive breakdowns and downtime, resulting in reduced maintenance expenses and increased operational efficiency.

Pricing optimisation is another application of AI for cost reduction in the travel industry. With the help of AI algorithms, tourism businesses can analyse historical data on customer behaviour and demand patterns to adjust pricing in real time. This can help businesses maximise revenue while ensuring that prices remain competitive.

The use of chatbots and virtual assistants is another way where AI is being used to save costs. These chatbots and virtual aides can provide 24/7 support to customers, answering frequently asked questions and resolving issues quickly and efficiently. This can help reduce the need for human customer service representatives, leading to cost savings in staffing and training.

Safety for tourists

The tourism industry has a responsibility to prioritise safety and security for both visitors and local communities. Advances in AI have enabled tourism businesses to improve safety measures and reduce risks through predictive analytics, monitoring, and response.

Predictive analytics based on data on crime rates, weather patterns, and other variables can help forecast possible safety risks and allow businesses to take necessary preventive measures. Hotels, for instance, can monitor social media and news feeds through AI to identify potential safety risks and inform staff about necessary precautions.

AI is also being used for safety in tourism through monitoring and response. Tourism businesses can use AI to monitor their premises, public spaces, and transportation systems in real time to detect potential safety threats. In the event of an emergency, AI can also help businesses respond quickly and efficiently, such as by directing guests to safety or coordinating emergency services.

Additionally, AI can be used for safety in tourism through the use of facial recognition technology. The technology can help identify potential security threats, such as individuals on watchlists or those with a history of criminal activity, and alert security personnel to take necessary action.

Sustainability in tourism

Sustainability has become a key focus for the tourism industry, as businesses strive to reduce their environmental impact and promote sustainable practices. AI has the potential to help tourism businesses achieve their sustainability goals by enabling them to make data-driven decisions, reduce waste and energy consumption, and promote sustainable tourism practices.

AI algorithms can analyse large sets of data on energy consumption, waste production, and other variables to identify areas where businesses can minimise their environmental impact. Hotels, for instance, can use AI to study energy consumption patterns and make adjustments to reduce their carbon footprint.

Smart building systems are another area where AI is being used for tourism sustainability. AI can help businesses monitor and control their building systems, such as lighting and temperature, to reduce energy waste and improve efficiency. This can lead to cost savings for businesses while also reducing their environmental impact.

AI can also help businesses promote sustainable tourism practices, such as offering eco-friendly activities or encouraging guests to use public transportation. This can help businesses reduce their environmental impact while also promoting sustainable tourism practices to their guests.

Innovation in tourism using AI

AI can be used to drive innovation in the tourism industry in a number of ways, including making personalised travel itinerary recommendations, offering language translation services, and even permitting virtual tours of well-known tourist attractions.

An AI-powered digital travel companion that offers suggestions and recommendations in real time depending on the user’s interests, preferences, and location is one potential solution. Natural language processing might be used by this travel companion-bot to communicate with the user, ascertain their needs, and offer pertinent details on events, restaurants, and attractions in the area.

For example, the AI travel companion might suggest a particular hiking trail to a tourist who enjoys outdoor activities or recommend a local event that suits the user’s interests in culture. The AI might employ machine learning algorithms to gather information from user inputs and behaviour to further tailor its recommendations over time.

The AI-powered travel companion might also “interact” with other tourism services, like online reservation systems or travel apps, to further enhance convenience for the user. A dinner reservation or booking a ticket to a local site, for instance, may both be made by the AI during the same chat.

And not least, an AI-powered travel companion could serve as a personalised tour guide, helping users discover hidden gems, enriching their travel experience, and potentially increasing their satisfaction and loyalty towards a particular service or destination.

Challenges and limitations

While there are many potential benefits to using AI in the tourism industry, there are also several challenges and limitations that need to be considered.

One major challenge is data privacy. Hotel operators, destination managers, and others collect and analyse large sets of data on their customers (tourists), and there is a risk that this data may be misused or compromised. Businesses need to ensure that they are implementing robust data privacy and security measures to protect their customers’ information.

Another challenge is the risk that AI may lead to job displacement. As businesses automate certain tasks through the use of AI, there may be a decrease in demand for certain job roles. Businesses need to consider the potential impact on their employees and communities and work to mitigate any negative effects.

Further, there is a risk that AI may lead to a lack of personal interaction and care in the tourism industry. As businesses rely more heavily on technology, there may be less personal engagement with customers and communities. Businesses need to strike a balance between using technology to improve efficiency and maintaining personal connections with customers.

In addition, the cost of implementing AI technology may be a limitation for some businesses. AI technology can be expensive to develop, implement, and maintain, which may be a barrier for smaller firms or those with limited resources.

Applying AI to the tourist sector can benefit businesses greatly by helping them to improve their operations and offer personalised and environmentally-responsible travel experiences. AI technologies like machine learning and computer vision can assist businesses in understanding and serving tourists better, reducing costs and waste, enhancing safety and security measures, and promoting sustainable practices. However, it’s crucial to acknowledge the possible challenges and limitations, such as data privacy concerns, bias and job loss. Companies must approach AI with a balanced and deliberate perspective, considering the potential effects on their customers, employees, and the wider community and environment. By embracing AI ethically and responsibly, the tourism industry can utilise the technology to drive innovation, create more enjoyable and sustainable travel experiences, and ultimately build a more robust and resilient industry.

The writer is campus dean, James Cook University Singapore, and a regional vice president, International Tourism Studies Association.