How Generative Artificial Intelligence is Revolutionizing Travel Industry?

Generative artificial intelligence has become the undisputed top technology topic of 2023. Once relatively unknown, it burst onto the scene in January, with the buzz around OpenAI’s ChatGPT capturing the attention of every sector in the travel industry worldwide.

Microsoft’s confirmation at the end of January of a multibillion-dollar investment in OpenAI (rumored to be $10 billion) and the extension of their partnership added credibility to OpenAI and highlighted the transformative potential of generative AI. This investment positioned generative AI alongside the creation of personal computers, the internet, and mobile devices in terms of potential impact. Google’s decision just two weeks later to unveil Bard, its conversational AI chatbot and a direct competitor to ChatGPT, further fueled the hype.

Initially, reactions across the travel industry were mixed. Companies such as Trip.com, Expedia, and Kayak, along with many smaller companies, jumped in early to integrate and experiment with the technology, while others adopted a more cautious, wait-and-see approach.

Despite some early skepticism, it soon became clear that generative AI could be utilized in multiple ways across the travel industry. It added speed and efficiency to internal operations such as marketing, staff training, sentiment analysis, and coding applications. Additionally, it enhanced the traveler experience through personalized itineraries, translations, and more sophisticated customer service.

The technology continues to evolve rapidly, with recent launches of GPTs and Assistants from OpenAI and Google’s launch of Gemini. In 2024, we expect significant developments around autonomous agents—generative AI-powered assistants that can operate browsers, conduct searches, fill in forms, and complete bookings. We’ll also see more data on the return on investment for travel brands integrating this technology, such as Tripadvisor’s early results from its generative AI-powered Trip Planner and destination content.

As the travel industry enters its second year of using generative AI, expect more sophisticated use cases and concrete data on consumer adoption and the revenue impact for suppliers.