Top 10 Technology trends that’s transforming Travel Industry

Just like traveler preferences change, so do technology advances at a rapid pace. What started with booking trips online on the internet to mobile apps coming along the way and now Generative AI is shaping the travel and tourism market. 

A McKinsey study states that people love traveling and want to try new experiences. That’s why spending on travel will increase by $8.6 trillion in 2024. Domestic travel is expected to grow 3% annually and reach 19 billion lodging nights per year by 2030.

The way people plan and manage their journey has changed significantly. Traditionally travel agents used to plan itineraries to mobile apps now managing the entire travel process. 

According to a Google travel study, nearly 74% of travelers prefer booking their trips online, and the remaining 13% trust travel agencies to fulfill their travel-related needs.

As time passes, the customer expectations continue to rise. From online booking platforms to customers seeking hyper-personalized travel experiences, everything is evolving at a rapid pace. 

Digitization has become a driving factor in travel which adds value to not only customers’ lives but also becomes a marketing tool for travel, tourism, and hospitality companies to come closer to their customers. 

So, if you’re running a travel business and want to understand your customers at a granular level, you need to make travel more accessible and easier for them, so they won’t have to think twice before choosing you.  

That’s possible when you leverage the latest travel technology trends (AI, sustainable technology, Robots) to enhance the traveler’s experience and personalize their journey. 

In this blog, we’ll cover everything in detail about the top 10 travel technology trends you MUST adopt to stay on top of customer’s minds. 

What are some top technology trends in the travel industry?  

Let’s discuss some of the top sizzling travel technology trends you should follow to take a first-mover advantage in the travel industry –  

1. The use of Sustainable Technology 

As people are getting environmentally friendly and looking towards creating a better sustainable future, travel and tourism companies should also create innovative technological solutions that keep the planet first. 

Sustainable tourism has become immensely popular not because digital nomads and travelers prefer it, but because it reduces the negative influence on sites, and local attractions and preserves the natural beauty of the spot. 

From choosing eco-friendly destinations to relying on technology for fulfilling travel-related needs, everything is available to users at their fingertips.  

Technology has made journeys more convenient than ever. Even if we talk about the aviation industry, aviation contributes to 2% of the CO2 emission in 2022, and it’s expected that there will be a significant rise in flights by 2030.  

So, can you imagine how much CO2 it can produce? 

There comes the need for creating sustainable aircraft which is powered by biofuel or hybrid fuel. Thus, technology plays a significant role in reducing carbon emissions in the environment.  

More importantly, it urges the customers to fly with zeal and confidence.  

Various airline companies including British Airways, Japan Airlines, and American Airlines are on the pathway towards sustainability. They have reduced their reliance on fossil fuels and adopted digital means to achieve net zero emission targets.  

A popular example of this is Alaska Airlines increased their flight efficiency by partnering with the platform called Flyways AI which is an ML-based solution. 

The system will test the scenarios to provide an optimal route that reduces the carbon footprint. It depends on the flight dispatcher whether they want to go with that route or take another. 

2. Artificial Intelligence 

AI changes the world of the travel and tourism industry, and it makes the lives of travelers easier than ever. 

A study by the World Travel and Tourism Council states that the use of AI and Machine learning is likely to result in a $1 trillion boost in the travel and tourism sector by 2025. 

This emerging technology brings substantial benefits to travel and tourism operators in the way they serve their customers, predict customer demand and provide personalized recommendations for flights, hotels, restaurants, and other airlines. 

Travel companies have integrated AI-powered chatbots and smart booking assistants for analyzing customer preferences and then curating personalized travel plans.  

Airbnb for example is a perfect place for short-term and long-term rental uses. 

Its advanced AI algorithms analyze previous bookings and preferences to provide personalized suggestions to travelers. Thus, they can maximize their rental revenue and stay competitive during the low season. 

Hosts can dynamically change their pricing strategies using AI. They can fine-tune the prices of their accommodation based on various factors such as location, demand, seasonality, market conditions, or competitor prices. 

3. Robots  

Robots are another technology trends making big waves in the travel and hospitality industry. 

Gone are the times when travelers needed to wait hours to find someone or stand in a long queue to get directions. 

Now, popular airports and hotels have deployed robots to provide the best possible service to customers. These robots act as the guiding force for instructing passengers at the terminal. 

One example of an airport that uses robots is Heathrow Airport, in London. Its fully autonomous robot helps guests with basic tasks and helps the airline staff to focus on value-added or complex tasks. 

Thus, there’s less need for human agents as robots become the key pillar for assisting customers.  

Additionally, leading hotel chains around the globe have been using robots to ease the check-in process.  

The Henn na Hotel in Nagasaki employed robots to ease the check-in and check-out process. 

For some hotels, robots have been used for greeting guests, while others use them for cleaning and luggage handling. Some others have been using it for food-handling purposes. 

4. Augmented Reality 

Augmented reality adds a taste of pun to normal experiences. It changes the way travelers think about traveling and becomes an asset for travel and tourism companies to provide interactive experiences to tourists.  

Travelers can experience the streets of Tokyo or plan their trips virtually by sitting in the comfort of their homes. They can virtually interact with things and get a sneak peek of what it looks like.  

AR/VR technologies are solely considered marketing tools for travel and tourism companies as they can provide virtual experiences to customers and charge them on that basis.   

Various airline companies including First Airlines decided to enhance passenger experience by offering virtual and augmented reality. 

The company uses these immersive technologies to help passengers experience the in-flight meals, entertainment, and games before they board the actual flight. 

Passengers can go on a 360-degree virtual tour to experience attractive places like Rome, New York, Paris, or Hawaii. Even AR makes it easier for passengers to check the size of their luggage before leaving their homes.  

5. Internet of Things (IoT)  

IoT changes the travel and tourism landscape by enhancing the travel experience. 

In this hyper-competitive world, traveling has become more competitive, and the integration of IoT devices (smart luggage, wearable tech, connected hotel rooms) helps companies fine-tune their services based on data collected.  

A prime example of this is developing an IoT app that enables guests to check in, avail hotel services on the go, and get discounts on services when they make repeat purchases. 

IoT sensors can even notify the hotel staff before the guest arrives. This way, they can complete their housekeeping chores in advance. 

IoT is a revolutionary technology for travel and tourism companies as managing accommodations was a time-consuming affair. 

Today, connected software and sensors simplify the travel experience by collecting their details and then providing personalized travel recommendations. 

For instance, – Data gathered through sensors helps travel companies to tailor their tour packages as per traveler preferences.   

If the traveler is having an active lifestyle, then the online platform will personalize the travel experience by recommending adventurous-related destinations.  

If the traveler is a foodie person, they may suggest some other options such as the best cuisines to visit in XYZ place. 

Similarly, IoT brings several benefits for hotels and resorts.  

Implementation of Information of Technology Technology in Mariott helps hoteliers to cut their operational expenses. The front desk staff can regulate the lighting and room temperature by sitting at their reception desks.  

6. Blockchain Technology  

The infusion of blockchain technology in the travel industry comes with security and stability benefits.  

In the travel industry, a lot of data is shared back and forth throughout the network such as check-ins, booking data, traveler preferences, luggage handling, and other updates.  

With an increase in customer data, there comes the concern for vulnerabilities. That’s where blockchain technology works and changes the travel game. 

Blockchain decentralizes the booking process, cuts the middleman in between, and streamlines the communication between vendor and client. Thus, there are no centralized intermediaries like OTAs as blockchain decentralizes the travel process.  

Moreover, there’s always the risk of customer data as these third-party service providers often sell customer data to make money.  

Blockchain technology securely stores customer’s data, verifies transactions, and enhances the customer experience.  

For instance – Travala is an online booking platform that uses blockchain technology to provide accommodations to travelers such as hotels, flights, and other activities.  

Travala uses Binance cryptocurrency exchange and allows travelers to book hotels and flights using digital currencies. They do have a smart loyalty rewards program where they can access exclusive features and redeem crypto cashback and discounts.  

Another popular use case of blockchain technology in the travel industry is that it verifies the information on the go and reduces the airport or check-in queue.  

A simple fingerprint or a retina scan can streamline the check-in process with no more hassle. Travelers need not worry about carrying physical documents as everything is stored in a decentralized ledger.  

7. Voice Search and Voice Control 

Another travel technology trend hitting the ground is Voice search and voice control.  

Modern travelers have become highly dependent on voice assistants to search for n number of things such as booking tickets, and hotel rooms or to enjoy the travel experience.  

In hotels, voice search has grown tremendously by enabling guests to adjust lighting and control the room temperature. They can do hands-free navigation and request hotel services on the go.  

In the coming few years, this technology is more likely to advance and if your website doesn’t support voice search functionality then you’re going to lose a bunch of online consumers.   

Voice assistants (Amazon Alexa, Google Assistant) make up the day of consumers so much that more than 1 billion voice searches happen every day. As these technologies provide comfort and convenience to guests, they are in huge demand.  

A survey was conducted by Hotel Technology News which states that 49% of travelers prefer choosing a hotel that offers high-tech features such as voice room assistants.  

These in-room voice assistants allow guests to regulate lighting, heating, room temperature or control any device while sitting anywhere in the room. They can request hotel services, contact staff or do anything without asking the front desk staff.  

Thus, guests feel hyper-personalized when everything is possible using voice search functionality.  

8. Use of Generative AI tools like ChatGPT  

ChatGPT is a free handy tool that travel, and tourism companies can use to provide human-like responses.  

Tools like ChatGPT are trained on chunks of data to create new content be it writing blogs, articles or creating a social media strategy.  

Most customers have become impatient, and they want rapid responses within just 1 minute. In that case, ChatGPT can enhance customer satisfaction by providing prompt replies.  

On the other hand, companies need not worry about finding a customer service agent. 

As ChatGPT can answer your routine yet repetitive questions, it can save you costs that would otherwise have been incurred on hiring employees.  

Moreover, it reduces the workload on employees as they can devote more time to answering complex questions.  

Research from McKinsey states that Generative AI tools can act like a productivity frontier for organizations and it’s going to generate trillions of dollars of value to the global economy. 

It’s expected that Generative AI will increase workforce productivity by 0.1-0.6% by 2040.

In a nutshell, ChatGPT has several use cases in the travel industry-  

• Travel companies, hotels, and restaurants can use ChatGPT for booking and reservation purposes. Bookings can occur quickly with no more manual efforts.  
• This generative AI tool can act like a customer service representative. It can answer customer questions anytime and interact with them on the go.  
• It can provide personalized recommendations to customers by analyzing a customer’s travel history, their preferences, or previous customer’s history.  
• You can even integrate ChatGPT on your website and can use it for marketing purposes. It can communicate with customers and promote new services or share promos or discounts with guests.  

9. The dominance of Media-Led Travel 

Travel has become more media-led meaning that travelers prefer visiting destinations recommended by influencers.  

Today, social media platforms are not just mere tools, rather they have become a platform for sharing experiences. 

These days, travel influencers have changed the meaning of travel. Mirco and Niche influencers have tons of trusted followers on social media platforms like Instagram and TikTok.  

They share valuable content on these platforms inspiring people to think about where and how to travel. That’s why travel businesses are also collaborating with influencers as they’ve built a following over time.  

Therefore, some tourist destinations see a major spike in footfall as media-led influencers talk about these places and share their experiences.   

For instance – If an influencer shares a video on TikTok about culture and the festivals that people living in the European Union celebrate, that piques the visitor’s interest. That’s how they try to virtually explore these places.  

10. Rise of AI Travel Agents  

Artificial intelligence has now transitioned from assisting customers to acting as independent entities. Various travel, transport, tourism, and hospitality companies are using AI agents for performing certain business operations.  

Hoteliers use AI algorithms for setting pricing strategies and optimizing hotel revenue.   

Wyndham Hotels and Resorts uses a revenue management system that uses real-time data and analytics features to fine-tune its strategies and set the prices dynamically based on market insights.  

These are not your mere traditional human agents; they create hyper-personalized experiences.   

Many travel companies including Expedia have launched their AI travel assistant called Romie to make travel accessible and fulfill the traveler’s needs.  

Romie is an AI-powered travel buddy who has become more intelligent than ever. It’s an all-in-one travel companion that learns to identify what type of traveler you are, what kind of food you prefer, and what type of activities interests you the most.  

It enhances the traveler experience by offering various benefits to them-  

• Personalize your search experience by helping you find the best hotel/resort.
• It helps you plan and manage your group trips.  
• It can offer weather updates or tell you feasible alternatives if there are last-minute disruptions or the trip gets canceled.  

Wrapping up  

The above-mentioned top technology trends are killing the travel industry.   

From Augmented reality that provides immersive travel experiences to AI taping the user preferences to Generative AI tools that travel companies are deploying to provide continuous support. 

You can make travel more seamless and personalized by investing in such innovative technologies. 

No worries if don’t know how and where to start.  

At BigOhTech, we have a dedicated travel app development team that can create online travel solutions for businesses to enhance the travel experience and increase your business revenue.  

We can make your travel apps stand out by integrating advanced functionalities such as push notifications, multilingual support, and customer reviews that WOW your customers.  

Having served various clients in the travel niche, we carry years of expertise in crafting engaging and intuitive travel applications that provide a stellar digital experience