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What Is AI Personalisation And How Could It Aid The Travel Industry?

What Is AI Personalisation And How Could It Aid The Travel Industry?

Over the last couple of years, AI has been dominating the technology landscape. Or it certainly feels that way, given how loud some of the conversations have been. If most are to be believed, AI has the capabilities to change every industry and perhaps even get rid of the need for human workers.

Well, we’re not so sure about that, but AI is certainly something worth talking about. Although it is not changing every industry in the near future, there are certain marketplaces where its effect will be felt over the next few years. The specific sector of tech is the effect of personalisation driven through artificial intelligence and machine learning.

In terms of AI personalisation, the biggest beneficiary so far has been the gaming industry, which has been utilising AI technology to understand player preferences and hone their online game library to suit evolving tastes. But knowing that personalisation can be achieved in this way, there have been other industries that have looked to take advantage. Namely, the travel industry using AI-driven tech to personalise the tourist experience. 

AI Personalisation And The Travel Industry
To understand exactly how AI personalisation is being used by the travel industry, it is first important to understand exactly what AI personalisation is. This is a machine learning technology that can effectively analyse customer data, understand their own preferences and needs, process that understanding, and then tailor an experience directly for them.

Once again, in the gaming industry, this could be by determining which games they are likely to be looking for, and which games best suit their personality. In the travel industry, however, it can be used to customise travel experiences and find places that will appeal to the customer.

This is especially important in 2023, where employment loss coupled with ever-growing data is affecting the overall travel market. Nowadays, there is more data than ever, but such a large amount of data requires a large amount of work to accumulate it, process it, and then put it into action. After the global issues faced during 2020 and 2021, however, the travel industry was one of the markets to be hit the hardest, which resulted in seismic employment loss.

The Benefits Of AI Personalisation
With AI personalisation, however, organisations don’t need a large workforce to plough through a huge amount of data. This process can instead be automated and, in most cases, even better applied to providing that perfect customer experience. This is something that the travel industry is putting into effect now, but it won’t be long until other organisations follow suit.

AI itself can make it so much easier to streamline processes and manage a larger amount of customer data. Because of this efficiency, the act of processing and applying data is far more cost-efficient and likely to lead to a good customer experience. For the travel industry, any way to enhance the customer experience is important to ensure customer loyalty.

If a customer can have personalised recommendations, as well as a customised trip plan, they will have a better experience in that specific destination, and be more likely to book again through that organisation. With repeat customers making up a large portion of revenue, this will give travel organisations more chance to expand – loyal customers, on average, spend 67% more than new customers in the travel and tourism industry – and stay relevant in the ever-changing market.

Of course, AI is not the sole driver of an organisation’s growth, and nor will it be the sole driver of the travel industry. But AI can certainly be applied to smooth out certain operations and ensure their potential is being maximised. With the travel industry quickly realising this, it’s likely that we will see the market fly over the next decade.