Generative AI is making its mark in various industries, particularly in the travel and hospitality sectors, where it is increasing customer engagement, improving operational efficiencies and providing personalized experiences.
According to a PYMNTS Intelligence report, “At Your Service: Generative AI Arrives in Travel and Hospitality,” airlines and hospitality businesses are exploring the potential of artificial intelligence (AI), especially in customer-facing roles, as companies weigh its benefits and limitations.
Airlines are eager to integrate generative AI, especially in customer engagement roles, but its potential reaches beyond these initial applications. United Airlines has started using AI to oversee weather-related flight delays, a major cause of passenger frustration. According to the Federal Aviation Administration (FAA), around 75% of flight delays are weather-related. Through generative AI, United provides near real-time weather updates via text, a task that was previously managed by airline staff. This change allowed staff to focus on more strategic tasks, increasing overall efficiency.
The airline industry is facing a shortage of skilled aircraft maintenance technicians, with one-fifth of jobs potentially unfilled by 2033, according to the report. Generative AI is being explored as a solution to help technicians by assisting with troubleshooting and diagnostics, which could reduce by 60% the amount of time spent on paperwork daily, allowing more time for technical work.
Generative AI is used in hospitality, especially for customer support and marketing. According to the report, 52% of customers expect AI to assist with interactions, while 44% believe it will enhance guest engagement. Companies like Serko and UneeQ are developing digital travel agents, such as Zena, which uses natural language processing to provide personalized itineraries, manage bookings, and offer 24/7 support, improving the overall travel experience.
Despite these advances, experts caution against overusing AI in customer-facing roles. While generative AI can offer efficiency, it can result in robotic and impersonal interactions, which may alienate customers. It is essential for businesses to integrate AI in a way that enhances human interaction rather than replacing it entirely.
Generative AI shows promise, but it still has limitations. According to the report, 56% of travelers would use AI for restaurant suggestions, and 53% would rely on it for hotel recommendations. But AI may not always have access to the full range of options, especially for lesser-known destinations, leading to inaccurate or suboptimal suggestions.
As generative AI becomes more widespread, it’s easier for scammers to exploit the technology. Travel websites like Booking.com report an increase in travel scams, with criminals using generative AI to create convincing phishing emails, fake listings and fraudulent websites. As AI-generated content becomes more sophisticated, these scams are becoming harder for consumers to detect. Businesses need to remain vigilant and use AI to detect and prevent fraudulent activities, ensuring that the technology is used for good.
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