Application of artificial intelligence in tourism: current situation and future expectations

LOUD THINKING / Aco Momčilović, CoFounder and CoDirector of Global AI Ethics Institute

Author  Aco Momcilovic

29. March 2022.

Last week I had the opportunity to be part of a conference on tourism and its various technical and AI aspects. In Croatia, tourism is an important industry, so it made sense to analyze some data and propose some conclusions.

In general, research from 2017 onwards shows that tourism is not one of the biggest adopters of AI. Along with health care (which I wrote little about in my article on AI and diabetes) and education, tourism is in the category of low adopters. If we look at companies in a certain industry, it is obvious that, although there are some changes compared to others, the tourism / travel industry is lagging behind.

This is not surprisingly related to the level of investment and future investment plans for different industries. Leading industries in acceptance and level of investment are high technology and telecommunications, automotive and financial servicesWhat is interesting is that if we look at the potential value that AI can bring compared to other analytical techniques, tourism / travel comes first (according to a McKinsey study).

They are followed by transport and logistics, retail and the automotive industry. In addition, when looking at cross-sectoral potential, to create added value, tourism is again among the leaders.

Researchers have identified different areas of application, such as:

- Face recognition for fast and documented free registrations and passes
- Virtualna stvarnost - Assess the ambience and surroundings of the hotel
- Chatbots - apply in Marriott hotels, Hyatt hotels, GRT hotels…
- Robots - Turn on the lights in the bedroom, turn off the television, handling systems to ensure that luggage is automatically checked in and receive guests at the hotel
- Language translators - allow travelers to speak to local people in their language. Google Translate provides audio speech services when a traveler clicks on "Conversation mode"

Of course, we should not forget that AI is a resource that adds value or destroys value in its role in encountering human experience within service ecosystems. Recent research on artificial intelligence highlights potential negative aspects. These aspects range from job loss to concerns about privacy, machine ethics, security issues, and negative developments in potential superintelligence.

Some research identifies 3 main areas of focus:

  • Catering and gastronomy (with check-ins and check-outs, smart rooms, back office management, etc.)
  • Destination management organization (robots, chatbots, decision support, etc.)
  • Airports, theme parks and more (automation of services, analysis of tourist flows, autonomous carts, etc.)

Big data is of course a significant part of these projects. Travel companies use artificial intelligence and big data to creatively connect guests and meet their expectations with a personalized service. They also allow tourism professionals to learn more about their clients, and the more they know the better experience they can offer customers.

It also has some drawbacks. Because of personalization, it might be difficult to appreciate services if only perfectly personalized ones are delivered. There is also the fear of losing authenticity and missing general offers. It is not impossible that at the end of the cycle, in response, we could have destinations without artificial intelligence.

Possessed photography jibmsms4 ka unsplash
Photos:  Possessed Photography on Unsplash

Fortunately, there are a number of applications that are already working in the various segments we mentioned that could serve as inspiration:

1. Vouch sales of a digital doorman with AI designed to respond to guest inquiries, make reservations and receive room service orders - https://www.vouchconcierge.com/en/

2. Chatbots used by Airbnb, Booking.com, Skyscanner and Expedia.

3. Travelstop, which aims to simplify business travel with its server-free SaaS platform, which is designed to speed up the booking process, automate cost reporting and provide cost-saving insights - https://www.travelstop.com/

4. Hopper - optimal hotel prices and flights with personalized recommendations to users on the most appropriate time to book a flight - https://www.hopper.com/

5. Fooyo that creates custom itinerary planners that include real-time crowd tracking for attractions and events - https://www.fooyo.sg/

6. Robots presented at the Hilton Hotels, or at Heathrow Airport, or at the Henn Hotel - using only robots as staff: https://www.hennnahotel.com/ginza/en/

7. And the Mindtree that tracks your social engagement and uses this information: https://www.mindtree.com/

8. SITA is used at airports for better baggage management: https://www.sita.aero/

We could conclude that the full potential of the implementation of artificial intelligence in modern service ecosystems, especially in the arena of tourist destination systems, is still far out of reach.

But more importantly, there is a huge potential for AI applications in tourism and that any project that starts now will have a significant advantage over others that could come later. So my recommendation would be to hop on that train as soon as possible. This is a particularly good opportunity for smaller countries like Croatia, as competition is very limited and initial investment and demand are not as high as in other sectors.

Author Aco Momcilovic, CoFounder and CoDirector of Global AI Ethics Institute Original article: AI Applications in Tourism: Current Status and the Future Expectations

Cover photo: Maxim hopman on Unsplash

After graduating in psychology at the Faculty of Philosophy in Zagreb, Aco Momčilović also completed an Executive MBA at the Cotrugli Business School. He was educated at NLP Leadership Academy, Integral School of Organizational Development and Aspen Institute. His first job in the human resources department was at Ledo, after which he spent 4 years at L'Oreal Adria. For the next two years he was HR manager at Billa. After that position, he worked as an HR consultant on various projects (from hunting for staff to restructuring the size and organization of companies) in various industries. For three years he was a CHRO at Rimac Automobili. He lectures on business and corporate culture at business schools. Since the beginning of 2018, he has been working as an HR and business expert / consultant for various clients, as the owner of FutureHR. He works on projects such as: vision and mission of the company, "branding" of the company, organization design, recruitment, education, compensation and benefits, business consulting and mentoring. In his spare time, he is the president of MBA Croatia, an association that brings together MBA graduates in Croatia and the president of the business and humanitarian organization POZA.

 

 

 

Author  Aco Momcilovic

29. March 2022.