4 Ways Chatbots are Transforming the Travel Industry

May 24, 2019

Life becomes monotonous with an increasing workload and no relaxation. People go out for dinners, movies, etc. for recreation. But we all know the real fun lies in going on trips. The most exciting part of going on a trip is planning one. It involves various steps of choosing the mode of transport, hotels, and places to visit. But it can sometimes become a stressful experience in itself. This is where the utility of travel AI chatbots comes to the fore.

Travelers visit 38 sites on average while planning a trip – according to Expedia. Most traavel search journeys begins with the Google Search Tab and end with successful bookings with online travel agencies. 

But booking can also be tiresome with planning and complex booking process. With the usage of chatbots – the booking process can be simplified and the bot can answer the customer queries correctly and instantly. 

Chatbot Development Application in the Travel Industry


About Travel Chatbots

Chatbots have become the biggest thing in tech. They unlock the ability to provide personalized, interactive communication akin to talking to a human customer service or sales rep, but at scale for much cheaper than call centers. A conservative estimate is that chatbots could replace 1-800 numbers, offering more comfortable customer support experiences without the hassle of synchronous phone conversations, hold times and annoying phone trees.” –TechCrunch

One needs to communicate with travel agencies and tour services to make a trip memorable. A single mistake and it will result in a domino effect of terrible steps. At times all the steps can be tedious for tourists and might make them rethink about their trip. At these moments, AI chatbots come to the rescue of travelers. They free you from the hassles of having to meet different agencies and hold meetings. Travel Chatbots act as a one-stop shop for all travel needs.

One might think about the applicability of Chatbots in the travel industry. It is the “cheese” to every technological “Pizza.” The boom of the internet has disrupted the travel industry. There are several new concepts like online booking, online agents, web, and check-ins, and travel chatbots are the latest addition to such technological advancements in the industry.

AI chatbots have contributed a lot to the travel industry lately. Recent research shows that over 55% of youngsters prefer interacting with those businesses that use AI chatbots in the form of sales bots, ecommerce chatbots, job bots etc, for customer interactions. These youngsters represent a market of more than US $200 billion. No wonder many leaders in the travel industry have already opted for this world-class technology while many more are on the way to join soon.

Read on to learn about four of the major ways that conversational AI is changing the travel industry for the better.

How AI based Chatbot development is Transforming the Travel Industry


Let us look into various features of AI chatbots that are changing the travel industry.

1. Effortless Time Saving


Presently, the customer care centers are overloaded with FAQs. They need to handle standard questions, be it for airlines or hotels. Human executives tend to get irritated with such questions. As such, they might ignore certain queries in turn. At such point of time, interactive chatbot development services come to the fore.

AI chatbots are efficient in solving routine questions. With proper training, they might be able to solve complex problems. Such problems need human help at this moment. This will help human resource to stay occupied with more productive work or even more complex customer issues. Tasks that involve management decisions need human intervention. When humans are free of boring work, their actual productivity shines out. A business house should be able to churn out the greatest productivity of its employees. It can happen only when mundane tasks are handed to machines.

Examples like Goibibo GIA chatbot answer routine questions with no fatigue. It handles much more queries than any human customer-care team daily. It also takes care of ticket bookings, seat-selection, and various booking related queries. These tasks have reduced the load over humans by 25%. It disposes various coupons and vouchers at its discretion to reduce any discrepancy. There is a measure called “human interaction saved” which counts every bot interaction against human interaction. For GIA it is 60%.

Reference: One can easily make out the faster reaction of GIA, which has raised this point. Better response time saves travel companies’ money but also the customer’s valuable time for planning the trip. Just imagine what further advantages it can have!

2. Valuable Data Storage


Just imagine, if the business can get valuable insights into various customer related aspects, won’t it be an ideal situation? It is not possible in case of a telephonic interaction. That’s why travel businesses are opting for chatbot app development services to create a customized AI chatbot. Moreover, such AI chatbots are oceans of valuable data. They provide various valuable insights such as customer intentions, buying records, experience, and other valuable information. Such valuable data can help the companies to modify the customer experience for better service. Such chatbots can also help job portal development companies in developing an intelligent infrastructure for all applicants by market research.

3. Personalized Recommendations


Leaders of business can organize the data in a much more innovative way. These data orientations help the chatbot to provide customized recommendations as per user inputs. Marketing messages can also be altered as per particular users and training of AI engine. Bot development companies are preparing such AI chatbots that can accurately predict user behavior and patterns.

Interactive bots by AI consulting company can help in market research too. They generalize the data every second. Such an organization of data can be used for study for making essential changes to the product/service of the companies.

4. Financially Sensible


The demographic age group of 18-30 is the driving force for a majority of businesses. Youngsters are the most eligible target customers for majority industries. They are no exception for travel industry too. As discussed above, they have accepted chatbot usage earlier than any group. From a financial perspective, chatbot investment is sure to give a measurable return. A well-developed chatbot from bot development companies can convince a curious visitor to buy tickets within minutes. Therefore, it makes more sense financially.

Recently, a company called GReaTa introduced travel bots on its website for booking hotels and resorts. In 2.5 months, the interaction of customers with GReaTa increased manifolds. Among them, 84% willingly shared their details, and 40% booked a service or two. It led to an increase in total turnover as well.

We all know that interactive chatbots reduce the cost of maintaining an army of customer care executives. One can automate it to approximately 30%, which accounts for all repeated queries. With a gradual bot, interaction automation can rise well above 80%. It is a lot cheaper than human executives’ operation. The main aim of a chatbot is to improve customer experience. With chatbots, customer interaction improves the brand reputation that enhances the customer experience, boosting their engagement with your brand. For daily queries, customer care chatbots can prove to be not only effective but, profit-earning too.

According to reports, chatbots are expected to save up to $8 billion annually by 2022. Therefore, a better future in the travel industry can be secured by optimal use of AI chatbots.

Reema Jindal

Digital Marketing Manager at Signity Solutions
With an experience of 11 years in digital marketing, she is our "PPC star." From team handling to engaging in fun activities, she outshines everywhere.

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