Navigating the AI Wave: A New Opportunity for Travel Industry Professionals

Thriving in the AI Era: How Travel Agents Can Lead the Way

 

Written By: Tom Ogg, Co-Founder and Co-Owner – Travel Professional NEWS

 

I read a number of AI newsletters every day, but when I saw this article in the Superhuman newsletter (superhuman.ai) I thought of the opportunities it presents travel agents. This is from the December 14th, 2024 issue.

 

The Trend

If you’ve ever booked a trip, you know how frustrating the entire process is. Last time I booked a trip, I had 40 different tabs open comparing everything from WiFi quality at hotels to vegetarian food options on every flight. No wonder AI giants regularly show off travel booking as one of the tasks their latest and greatest AI models can handle.

 

The Opportunity

The “AI in Travel” market is experiencing explosive growth, with market size projected to grow to $5.1B by 2034, according to Precedence Research. The ground is ripe for AI travel assistant apps that can analyze user preferences and past behavior to suggest destinations, manage hotel bookings, and organize payments. There’s already some signal that potential users are ready to adopt these products, with 68% of travelers saying they’re open to using AI-powered tools to customize trips, according to a study by Deloitte.

 

But it’s not as easy as it sounds. AI models are notoriously unreliable and prone to hallucinations. Such hallucinations might not be a big deal when they throw out a random factoid in ChatGPT. But users may not be so forgiving when an AI app puts them on a flight to Sydney, Nebraska instead of Sydney, Australia. That being said, the accuracy and reliability of AI models are improving rapidly, and there is definitely an opportunity to start experimenting now.

 

Old-school travel websites that we’re all familiar with already use AI algorithms to find and compare flight and hotel prices. We saw things go up a notch with general-purpose tools like ChatGPT that could generate itineraries for an entire trip. With new agent features hitting the market in recent months that can execute actions in web browsers on your behalf, the stage is set for the next generation of AI apps to execute itineraries, bookings, and plans on behalf of users.

 

How Travel Agents Can Thrive in the New AI Digital Landscape

While this article is concerning, it also introduces new opportunities. Travel agents have made seismic changes during the past 40-years, and this is just another one.

 

The projected growth of AI in the travel market to $5.1B by 2034 isn’t just a challenge; it’s an opportunity for travel agents to revolutionize their service offerings. With 68% of travelers showing openness to AI-powered travel tools, agents have a clear mandate to integrate these technologies while maintaining their unique value proposition.

 

While AI models can suffer from hallucinations and errors, travel agents can position themselves as the essential human overlay that prevents costly mistakes. By combining AI efficiency with human oversight, agents can verify AI-generated recommendations for accuracy. They can double-check crucial details like destination codes and flight connections, and they can ensure hotel amenities match client preferences exactly.

 

Integrate AI Immediately

Travel agents can develop a hybrid approach that leverages both AI capabilities and human expertise. You should immediately start using AI platforms such as ChatGPT (chat.openai.com), Claude (claude.ai), or Perplexity (perplexity.ai). Use the tools for initial research and basic itinerary creation. You can employ them to handle routine tasks, documentation, and problem-solving. Use the tools to develop social media content and other communications and provide the crucial emotional intelligence that AI lacks. They can easily generate itinerary suggestions around specific prompts.

 

Install an AI Travel Assistant and/or AI Chatbot on your website so that clients drawn to using a travel assistant can do so on your website. By having your own AI travel assistant, you have extended your business hours to 24/7. Use your chatbot for customer service 24/7. This will move you into the world of AI in your clients’ minds.

 

Focus on Value-Added Services

To differentiate your agency from pure AI solutions, travel agents should focus on offering specialized support that AI cannot provide:

• Crisis Management
• Emergency Response Capabilities
• Real-Time Problem Resolution
• Personal Accountability
• Complex Itinerary Design
• Multi-Destination Coordination
• Special Requirements Handling
• Cultural Insight Integration
• Relationship-Based Service
• Long-Term Travel Planning
• Family History Consideration
• Preference Learning and Adaptation

 

Travel agents represent a unique value proposition that AI-based travel assistants do not. The rise of AI in travel presents an opportunity for agents to evolve their role to high-value travel consultants. By embracing AI tools while emphasizing human expertise, travel agents can create a service model that’s more efficient, accurate, and personalized than either AI or traditional methods alone.

 

The key to success lies not in resisting technological change but in strategically incorporating it to enhance the human elements that make travel agents indispensable. As AI continues to evolve, travel agents who position themselves at the intersection of technology and personal service will find themselves not just surviving but thriving in this new AI landscape.