Inside: How Generative AI Will Change How You Search for Holidays. Collaborative post.
2024 was the year that the tourist industry finally bounced back. The latest World Tourism Barometer by UN Tourism reported that 790 million tourists traveled internationally in the first seven months of 2024, 11% more than in 2023 and only 4% less than in 2019.
Photo by Malhar Garud on Unsplash
Despite the setbacks of recent years, having a well-earned break is still a priority for many people. While the desire to see the world with friends and family hasn’t changed, the way we can now search for and choose holidays most certainly has changed through the integration of artificial intelligence (AI).
Most people link AI to tech companies and businesses, but it is also having a major impact on the tourist industry through generative AI.
At the moment, generative AI is still in its infancy, but in the near future, it will become a much more widely used and advanced tool for searching for holidays. In this article, we will examine what generative AI is and how it will change how you search for holidays.
What is Generative AI?
Generative AI is an AI application that has the ability to generate content and provide responses to queries based on the information it has from existing datasets and any data it is being trained on. MongoDB outlines how generative AI is powered by large language models (LLMs) and data management systems that use semantic searches, such as vector databases.
These databases and LLMs are able to find contextual relationships within the data to provide relevant results, whether in a chatbot or a recommendation system. Below are 4 ways generative AI is changing how we search for holidays.
ChatGPT Suggestions
The most well-known example of generative AI is ChatGPT, and The New York Times has outlined how it can be used to plan trips. The paper notes how “travelers can “converse” with the system, sharing information like a destination, time of year and interests, and getting back a personalized itinerary festooned with vivid descriptions.”
This is significant for travelers as they won’t need to contact a travel advisor or do as much research themselves when looking for a place to visit. Instead, all they would need to do is input several prompts to get results based on their travel requirements. This will make searching for a holiday much more efficient.
Personalized Itineraries
Photo by George Pak
In line with the above, generative AI can recommend personalized itineraries based on previous holidays and searches. The World Economic Forum details how AI algorithms can analyze user behavior, preferences, and past travel history to offer personalized recommendations for accommodations and activities.
Many travelers today want an itinerary that doesn’t just include the usual tourist traps, and without generative AI, this would involve a lot of time-consuming research. A generative AI application will perform a semantic search to provide travelers with a list of suggestions specifically tailored to their preferences.
Dynamic Pricing Strategies and Targeted Offers
Photo by Dom J
Dynamic pricing is becoming increasingly common in the travel industry, especially as more holidaymakers look to save money as the cost of living continues to increase. This generative AI application is a pricing differentiation strategy that uses AI algorithms to determine factors such as the supply and demand cycle and other elements like weather conditions, seasons, and local events to set prices.
This enables those looking to save money to find the best possible deal. Of course, it also works the other way and may lead to some travelers being unable to afford an accommodation or flight due to the timing of their holiday.
Generative AI will also be able to help travelers to find the best deals. If travelers have used the application before or booked a holiday through a travel agency that uses generative AI, they will be presented with offers that consider their budget, preferences, and favored accommodation. This will ensure that potential travelers only get deals they would likely be interested in.
Virtual Tours
As generative AI can create videos and images, many companies are using it to provide virtual tours. This will allow visitors to get an accurate picture of where they will be staying, whether it be a virtual tour of a hotel room or a destination.
This is especially true of more unfamiliar destinations, with a Booking.com study noting how 46% of those surveyed would be more likely to travel to an unfamiliar destination after experiencing it digitally. Traveling can be very expensive, and knowing exactly what you will experience before you book is one way generative AI will ensure travelers are making the right decision before they part with their money.
For more Family Travel tips, do look through the rest of our articles.