More than half of travel companies plan to invest in artificial intelligence (AI) over the next year, according to a survey.
The research by TravelTech Show also suggested that 80% plan to increase their use of AI specifically in the year ahead, with nearly a third (32%) expecting it to have the biggest impact on customer service and customer experience.
A total of 62% of travel buyer respondents said they expected their budgets to increase over the next 12 months, and more than a quarter (28%) of the increases were anticipated to be by as much as 20%.
More: WTTC highlights ‘urgent need’ to embrace AI technology
TravelTech Show event manager Nimet Sayeed said: “As AI continues to evolve, arguably it might be regarded as a ‘one-stop shop’ that can answer many of the questions that operators are being faced with.”
A total of 100 travel and travel technology company representatives took part in the survey, carried out in April this year.
When asked how they were planning to invest over the next year, 56% pointed to AI, compared with 32% looking to spend on booking and reservation systems, and 20% expecting to invest in mobile and apps.
On AI, 24% expected the biggest impact of the technology to be adding value to applying customer preferences for the creation of targeted recommendations.
A fifth (20%) said it would have the biggest impact on booking assistants.
The survey also suggested that social media could be in decline, according to TravelTech Show, with websites voted as the best avenue for driving bookings (40%), followed by OTAs at 20%, while search engines and social media shared joint third position after being selected by 16%.
Over two thirds (68%) stated that technology was helping to mitigate the impact of inflation and staff shortages.
The main benefit of technology was seen as increased efficiency (32%), while second place (12%) was shared by increased revenue and profitability, boosting of ‘guest relations and personalisation’ and help with managing bookings.
Sayeed said: “Unquestionably travel companies are keeping a keener eye than ever before on attracting new bookings, response rates and meeting customer needs.
“All of which continue to take priority against the backdrop of continuous market changes, while at the same time seeking to deliver profitability and growth.
“New solutions entering the market offer a practical and effective roadmap to achieving these objectives.”
She added: “This year’s TravelTech Show will enable operators to find out more about just how many questions AI and other solutions can answer across the two-day programme of exhibitors, panels and networking sessions.”
TravelTech Show, formerly Travel Technology Europe, takes place from June 19-20 at ExCeL, London.
Photo: Shutterstock/TippaPatt