Wednesday, July 9, 2025
While economic pressures and surging traveler expectations continue to mount, artificial intelligence (AI) is becoming a key solution to provide operational efficiency and bolster customer satisfaction for the travel industry. Nonetheless, businesses are unable to unlock AI potential into productive performance, most notably due to legacy systems and highly developed workflows. Speaking at Phocuswright Europe, Chief Strategy Officer at Wenrix, Rob Brown, outlines travel’s journey from experimentation to scalable deployment of AI.
As a company that has spent nearly a decade crafting airline pricing, search, and customer service through AI, Wenrix has increased revenue, reduced service expenses, and refined operations for travel agencies and management companies. Brown explains factors that are forcing travel businesses to invest in AI, why building a strong business case for investing in AI makes all the difference, and key attributes that travel leaders should seek in technology partners to ensure that they’re achieving long-term, sustainable value, rather than buying hype.
Introduction to AI in Travel Industry
There is currently an AI revolution in the travel market, with travel businesses across all areas of the travel industry increasingly implementing artificial intelligence (AI) in order to streamline processes and provide more individualized experiences for customers. As profitability grows more critical and competition increases, AI helps redefine time-tested business models. Use of AI has moved beyond theoretical status to practical implementation, and has gained approval by influential players in the travel market, such as Booking.com and Expedia.
The Shift: AI from Theory to Practice
Rob Brown of Wenrix explains that AI has been a topic of discussion for years, but recent technological advancements and industry validation have led to its rapid adoption in the travel sector. He highlights the growing interest in AI among travel professionals, who now recognize it as an essential tool for enhancing both customer experience and profitability. This shift marks a pivotal moment in travel technology, where AI is no longer experimental but increasingly indispensable in a sector driven by competition, customer demands, and complex operations.
According to Rob Brown, AI in the travel industry offers unique solutions that allow businesses to meet two often conflicting goals: improving customer experience while also increasing profitability. By automating processes, enhancing data analysis, and offering personalized services, AI is transforming the way businesses interact with customers and manage operations. The ability to leverage AI for dual benefits makes it a particularly attractive option for travel companies seeking to stay ahead of the curve.
The Complexity of Travel Data and Legacy Systems
The application of AI in travel is not without its challenges. Travel is a uniquely complex industry, with specialized terminologies and systems such as Passenger Name Records (PNRs), Global Distribution Systems (GDS), and New Distribution Capability (NDC). These legacy systems and manual processes make AI implementation significantly more challenging than in other industries.
Rob Brown emphasizes that training AI to understand and operate within this complex ecosystem requires a tailored approach. Travel businesses cannot simply adopt generic AI models; they must work with AI solutions that are designed to address the intricacies of the travel sector. The pandemic has further complicated the challenge of training new human agents, adding to the difficulty of integrating AI effectively.
The Business Case for AI in Travel
One of the key aspects of AI adoption in travel is building a solid business case that aligns with the company’s strategic goals. Rob suggests that travel executives should focus on three main pillars when justifying AI investments: cost reduction, revenue growth, and maintaining a competitive advantage.
Cost Reduction: AI has the potential to reduce service costs significantly, with Rob citing examples of cost savings up to 70%. Automation tools, such as virtual assistants and chatbots, can streamline customer service processes, allowing companies to reduce reliance on human agents and improve efficiency.Revenue Growth: AI can also drive revenue growth by improving conversion rates and enabling personalized pricing. Predictive pricing models, for example, allow companies to offer tailored offers to customers, increasing sales and customer satisfaction.Competitive Advantage: In a rapidly evolving travel industry, AI provides businesses with a competitive edge. By leveraging AI to enhance operational efficiency and customer service, companies can differentiate themselves in a crowded marketplace.
Choosing the Right AI Partner
Rob Brown advises travel companies to carefully select AI partners who possess deep travel industry expertise and proven technological capabilities. Generic AI solutions may not be suitable for the unique demands of the travel sector, so it is crucial to partner with providers who understand the intricacies of travel operations and can deliver comprehensive, tailored solutions.
It is also important for travel companies to evaluate AI providers based on their ability to integrate across multiple channels and regions. AI solutions that are adaptable and scalable are essential for businesses operating in diverse markets, and Rob stresses that providers must offer solutions that can be customized to meet specific operational needs.
The Global Scale of AI in Travel
Travel businesses need end-to-end AI solutions that can address their diverse operational needs. Rob Brown highlights Wenrix’s ability to integrate AI across GDS, NDC, and multi-channel platforms, serving clients in regions from Asia Pacific to the Americas. For multinational companies, having a global AI solution that can standardize processes across regions is crucial for ensuring consistency and scalability.
The travel industry’s global nature requires AI tools that can manage cross-border operations, deal with multilingual customer interactions, and analyze international travel data. These solutions are essential for companies seeking to optimize operations and stay competitive in a fast-paced and tech-driven market.
Early Adoption of AI Offers a Competitive Edge
Rob warns that travel companies who delay adopting AI risk falling behind as margins tighten and customer satisfaction declines. Companies that are early adopters of AI will gain a competitive advantage, allowing them to enhance their offerings and stay ahead of their competitors. However, AI must be integrated thoughtfully into existing business models, rather than forcing businesses to adapt to the technology.
AI should be used to enhance current operations, making them more efficient and effective. By leveraging AI to improve processes and customer interactions, travel companies can position themselves as industry leaders in an increasingly technology-driven market.
The Future of AI in Travel
As AI continues to mature, its role in the travel industry will only become more prominent. The travel sector’s reliance on AI to solve operational challenges, improve customer experiences, and increase profitability will grow, transforming how businesses engage with customers and run their operations.
Success, in Rob’s view, boils down to partnering with the right AI suppliers, selecting solutions that answer travel’s unique imperatives, and integrating AI in existing business operations in a way that enhances, more than anything, but does not displace, operations.
Overall, deploying AI in travel is a historic shift toward companies managing profitability and customer experience in distinct ways. When paired correctly with technology and strategy, travel companies can employ AI to compete in an ever-changing marketplace, offering customers value and driving bottom-line results.
Tags: AI adoption, artificial intelligence, asia-pacific, customer satisfaction, Europe, Global, operational efficiency, Phocuswright Europe, rob brown, travel industry, travel technology, travel trends, United Kingdom, United States, Wenrix
