Artificial Intelligence now controls tourism sector, lowering operational expenses
The tourism industry is undergoing a significant digital transformation, with artificial intelligence (AI), chatbots, and virtual assistants playing a pivotal role. This shift is bringing about significant benefits for businesses and the workforce, but also presenting notable challenges.
Benefits for Businesses:
The integration of AI and virtual assistants is leading to cost reduction and efficiency by automating routine tasks such as itinerary consultation, tour bookings, and post-sale services like handling cancellations or flight changes. This allows staff to focus on more complex tasks[1][3][5].
AI-powered systems provide 24/7 customer service without wait times, improving customer satisfaction globally[1][3][5]. They also offer personalization by analyzing customer data to provide tailored recommendations for tours, accommodations, and activities, enhancing the user experience and increasing conversion rates[1][3][5].
By improving response times, personalizing offerings, and supporting multiple languages, businesses can boost customer loyalty and expand internationally[3][5]. AI also optimizes advertising budgets and targets customers more effectively, increasing marketing efficiency[1].
Benefits for the Workforce:
Automation of repetitive tasks allows employees to concentrate on higher-value, creative, or interpersonal aspects of the business, potentially improving job satisfaction and productivity[4][5].
Challenges:
For Businesses:
Transitioning from basic chatbots to sophisticated conversational AI requires investment in technology and training[2]. Building customer trust can be challenging, as customers may be wary of fully trusting AI for complex travel packages, perceiving a risk without human oversight[2]. Maintaining a human touch remains crucial to avoid alienating customers[2].
For the Workforce:
Increased automation may lead to job displacement in routine roles within customer service and booking[1][4]. Employees must adapt by acquiring new technical and interpersonal skills to work alongside AI tools[4].
In summary, AI, chatbots, and virtual assistants enhance operational efficiency, customer experience, and business revenue in tourism, while the main workforce challenges lie in adapting to technology-driven role changes and maintaining trust and quality in customer relations[1][2][3][4][5].
AI can also be used to study guests' behaviours, thus designing market-ready products. Businesses should partner with digital platforms, tourism startups, and apply AR/VR, digital map, and virtual guides to create distinct experiences. The focus of comprehensive digital transformation should be on personalisation of the customer experience, technological integration, and the use of AI and data tools to design packages for different customer segments.
According to a study by McKinsey, generative AI could unlock annual value ranging from $2-4 trillion across various industries, with the global AI market in tourism soaring from $92.46 billion in 2023 to more than $379 billion by 2028, with an annual growth rate of 33.9 per cent. The tourism sector in HCM City, Quảng Ninh, Huế, and Đà Nẵng is adopting smart tourism systems with integrated AI for suggesting itineraries, hotels, and restaurants based on a traveller's browsing behaviour.
- The automation of routine tasks such as itinerary consultation, tour bookings, and post-sale services via AI and virtual assistants can lead to cost reduction and efficiency for businesses.
- AI-powered systems offer 24/7 customer service without wait times, improving global customer satisfaction, and providing personalized recommendations for tours, accommodations, and activities, enhancing the user experience and increasing conversion rates.
- Transitioning from basic chatbots to sophisticated conversational AI requires investment in technology and training, and building customer trust can be challenging as customers may be wary of fully trusting AI for complex travel packages.
- Increased automation may lead to job displacement in routine roles within customer service and booking, emphasizing the need for employees to adapt by acquiring new technical and interpersonal skills to work alongside AI tools.
