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Next generation travel tech: How AI is reshaping the future of travel


Some of the travel industry’s most influential players met during WiT Singapore to discuss a subject that’s poised to change the way we see the world – literally.

At a secluded gathering on Sentosa Island, Singapore, the Global Travel Tech Thinktank, an invite-only collaboration between Web in Travel (WiT), Phocuswright and PhocusWire, brought together 50 executives from companies includingย Booking, Agoda, Klook and Trip.com to hash out the future of travel tech.

Their focus this year? Artificial intelligence. More specifically, how generative AI, personalization and human-machine interfaces will shape the next generation of travel.

This yearโ€™s theme,ย The Next Generation in Travel Tech, wasnโ€™t just about new gadgets or better algorithms. It was about understanding the massive shifts AI is bringing to everything from customer service to personalization and what that means for travelers.

Here are the major insights and predictions from the event, which just might hint at how weโ€™ll book, plan and experience travel in the coming years.

AI is personalizing travel like never before โ€“ but there are limits

The first topic on the agenda was the immense potential of AI to make travel experiences more personal. AI has gone from basic recommendations to more complex tasks like summarizing itineraries and interpreting traveler intent, opening up a new realm of possibilities for tailoring experiences. But according to Idan Zalzberg, chief technology officer of Agoda, thereโ€™s still a long way to go.

โ€œAll of these tasks that have been solely human are now something computers can assist with,โ€ย Zalzberg said. But while AI can provide an unprecedented level of personalization, he cautioned that itโ€™s not always reliable. Generative AI, in particular, is unpredictable, producing results that can vary wildly, even when applied to similar tasks.

David Liu, chief customer experience officer at Klook, also voiced concerns about the limits of AI-driven personalization in travel.

โ€œGiven the more occasional touchpoints an OTA typically has with travelers, it can be challenging to gain a deep enough understanding of their preferences,” Liu said. “There is also the challenge of ensuring that recommendations are both accurate and feasible.”

Privacy and trust are key to AI-driven travel

One challenge that came up repeatedly was privacy. While travelers want more personalized experiences, theyโ€™re also cautious about how much data theyโ€™re willing to share. AI may promise hyper-personalization, but it canโ€™t get there without access to usersโ€™ private data.

โ€œPeople are cautious to share data unless they see a clear return and benefit,โ€ย said Amy Wei, senior product director at Trip.com Group.

To address this, the thinktank recommended that companies enhance trust by integrating verifiable citations into their AI-generated responses, so users know where information is coming from. In other words, if an AI suggests a restaurant or activity, users should be able to see the source of that recommendation.

The solution might also lie in using on-device AI models that can process data locally, allowing for some degree of personalization without sending data back to centralized servers. This way, travel companies can offer custom experiences without compromising privacy.

AI is changing customer service jobs, not replacing them

AI isnโ€™t just transforming customer experiences; itโ€™s also reshaping the workforce. Wei shared how AI has enabled customer service teams to focus on more complex and fulfilling tasks by handling repetitive, routine inquiries. This shift allows human agents to apply more empathy and creativity in their interactions, moving beyond scripted responses.

โ€œThis collaborative effort allows the team to maintain high standards in customer communication, leveraging technology to amplify efficiency while retaining cultural accuracy,โ€ย Wei said.

In a global industry like travel, the ability to translate nuanced requests between languages, say, Japanese to Thai, requires both precision and cultural sensitivity, something AI can support but not fully replace.

However, the think tank cautioned against applying AI too broadly without considering the role of human oversight. They advised companies to create clear role classifications, identifying which tasks are best suited for automation and which require human skills, particularly in high-stakes interactions.

Airlines using AI to anticipate customer needs

As airlines experiment with becoming more like online travel agencies (OTAs), AI is helping them take strides toward deeper customer insights and more targeted offers. Jonathan Tong, senior vice president, head of South-east Asia, India Subcontinent & Greater China, Amadeus, highlighted how AI is enabling airlines to anticipate customer needs in ways they couldnโ€™t before, even predicting when a traveler might be on the brink of losing loyalty and proactively taking steps to retain them.

โ€œAI is already doing more than just calculate customer lifetime value โ€“ itโ€™s leveraging data and metrics to identify customer churn and taking action; for example, when a customer might be losing loyalty and take action to re-engage them to bring them back,โ€ย Tong said.

Still, structural limitations prevent airlines from fully replicating the flexibility of OTAs, which bundle products and services from multiple sources. But with AI agents handling tasks like cancellations, amendments and coordination with suppliers, airlines are inching closer to offering a seamless, OTA-like experience.

AI-driven personalization has potential for inclusive travel

Another promising area of discussion was AIโ€™s role in democratizing travel. Platforms can now use AI to โ€œinterpret the fire hose of intentโ€ from travelers, allowing them to serve niche groups more effectively. For instance, by identifying travel patterns among LGBTQ+ travelers or travelers with disabilities, platforms can offer more inclusive, tailored experiences.

โ€œIf we can interpret human language well enough to understand and infer causal relationships, we open up a new level of personalized travel experiences,โ€ย said Adrienne Enggist, senior director of product โ€“ customer experience and platforms, Booking.com. โ€œYou canโ€™t just ask users directly, but you can subtly infer needs through behavior.โ€

This approach could enable travel platforms to surface options that resonate with usersโ€™ unique needs without directly asking intrusive questions. Itโ€™s a step towards making travel more accessible for everyone, not just mainstream travelers.

The future of travel websites: AI-driven interfaces

One of the more futuristic discussions at the thinktank revolved around AIโ€™s potential to take control of digital interfaces entirely. Rather than static, hard-coded websites, the future might involve dynamic, composable screens managed by AI. Enggist described this as โ€œmoving beyond just creating fixed websitesโ€ to a more fluid, responsive design that adapts based on user preferences and real-time data.

โ€œWeโ€™re beyond just creating fixed websites; itโ€™s about allowing machines to manage the UI in a hybrid mode,โ€ย Enggist said.ย โ€œAIโ€™s control over the tech stack and user experience could redefine digital interactions, setting the stage for a more adaptive, responsive interface design.โ€

This concept could radically change how we interact with travel platforms, as AI becomes not only the engine behind recommendations but also the architect of the interface itself.

The path forward: Collaboration and ethical AI

The 2024 Global Travel Tech Thinktank highlighted not only the transformative power of AI but also the responsibility that comes with it. Industry leaders acknowledged that thereโ€™s no โ€œplaybookโ€ for AI in travel yet โ€“ companies will have to work together to set standards and best practices. Privacy, ethical considerations and transparency will be crucial as the industry navigates these changes.

โ€œThere is no textbook; Iโ€™d love to hire an AI expert to guide us, but we need to bring them from the future,โ€ย Zalzberg said.ย โ€œWe need to become those people.โ€

The consensus? AI will continue to reshape the travel industry in profound ways, but its potential will only be fully realized through collaboration, trust-building and a commitment to inclusive, privacy-respecting design. As travel companies work to balance innovation with ethics, the path forward may define the future of travel tech for years to come.

So next time you book a trip, donโ€™t be surprised if your travel app feels a little more like it knows you personally โ€“ because it just might.

*This article originally appeared on WiT.



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