AI in travel is a balancing act

Within the travel sector, the positive impact of AI is palpable – AI-powered search engines have been known to increase hotel bookings by up to 33 per cent. With 71 per cent of consumers expecting personalised travel experiences – something that has gained huge traction since 2021, AI’s role in customising travel services is now accelerating this growth. That said, the adoption of AI must be approached with careful balance.

Impact of AI on the travel experience
Over the last two years, OTAs, travel platforms and businesses have rapidly integrated AI into their service offerings. Often, AI presents itself as a customer-facing planning tool – a critical feature given that 64 per cent of Gen Z and millennials find vacation planning time-consuming.

Behind the scenes, AI leverages data to provide travellers with the best deals and experiences, tailored to their preferences. This has been successful, with more than half of Gen Z and millennials agreeing that AI has helped them save both time and money. In fact, close to six in 10 of them feel that AI introduced them to more interesting itineraries.

Beyond planning, AI-powered tools empower travel retailers to track elements like miles, loyalty points, and other benefits, thereby boosting operational efficiency. At azgo, for instance, we use AI to expedite cashback validation, allowing users to enjoy their rewards more quickly.

Studies suggest that AI could boost tourism businesses’ revenue by 10 per cent and reduce costs by 15 per cent. For emerging travel players, these improvements and efficiencies could significantly benefit both their operations and customer satisfaction.

Not every travel experience needs AI
Despite AI’s advantages, certain elements of the travel experience should not – and often cannot – be replaced by technology, particularly when it comes to customer service. While AI-driven chatbots can handle basic support needs with AI-generated responses, they cannot replicate the human connection that customers seek during stressful situations. Research shows that 30 per cent of consumers will take their business to a different brand, abandon their purchase, or tell their friends and family about their poor experience, after an unsatisfactory experience with a chatbot.

When travel retailers rely solely on AI for customer service, they risk damaging the customer experience and relationship that are crucial for long-term loyalty and purchasing decisions. At azgo, our team of travel veterans has observed this pain point first-hand, leading us to adopt a strategy where AI is used primarily for backend processes and generating automated messages while human touch is prioritised during customer service operating hours.

Balancing innovation with personalisation
As an industry, it is more important than ever to be mindful of how we can meet our customers’ needs. While AI can unlock smarter decisions and boost efficiencies, travel remains a deeply personal experience. Therefore, it is essential that we maintain a balance – leveraging AI where it adds value while preserving the human element that makes travel truly memorable.