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Chatbot for Travel Industry: Benefits, Use Cases, and The Future
Chatbot for Travel Industry: Benefits, Use Cases, and The Future

July 15, 2022

AI

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Digitalisation continues to have an impact on national as well as international industries and commercial operations. The travel and tourism sector has also been significantly impacted, encouraging them to adopt technological upgradation and change in their current business plans. Chatbots for travel Industry are a technology advancement that offers high-quality services to meet consumer needs and support businesses in keeping up with escalating client expectations.

Due to automation and contemporary digital practices, exploring travel options, booking travel tickets and making payments have become simple processes. Traditional modes of transportation are currently shifting or, in some cases, somewhat disappearing to offer travellers a distinctive travel experience from the moment they set off their journey to the moment they fly back home.

Regardless of where they are from, customers worldwide want a hassle-free experience. As a result, they are responding favourably to artificial intelligence as it makes their life simpler and more fluid. In fact, for a better user experience, 62% of customers are eager to give AI bots access to their data.

Let us further understand the benefits of Chatbots and how they impact the Travel Industry in future:

As customers of modern society, we are constantly on the lookout for quick and efficient solutions wherein everything is available at our fingertips. Chatbots are transforming the travel industry by offering a number of benefits. 

Benefits of a Chatbot for Travel Industry

AI Chatbots can benefit companies practically in all sectors of the travel industry. 

People working in industries like hospitality, hotels, transportation, travel facilitation, airlines, and event planners can benefit most from streamlined booking procedures and quicker customer service response times. Apart from this, a chatbot for travel industry offers several benefits:

  • Multilingual Chatbots

Travel and Tourism is a global industry. Regardless of the language people speak, individuals can make reservations from anywhere in the world. If customer service is provided in their native language, 74% of customers will come back to make a second purchase. In the tourism sector, a multilingual chatbot can communicate with customers in their native tongue. With the ability to quickly translate and detect languages, chatbots can offer more personalised services to assist travellers at each stage of their journey. This gives tour operators and providers of lodging services a clear edge.

  • Personalised Recommendations

Chatbots for travel and tourism can learn from previous customer interactions and use customer information to make customised recommendations, such as recommending a hotel or offering discounts and promotions. This significantly helps in retaining customers. To retain customers, live agents and bots collaborate and provide a proactive customer experience. As a result, these chatbots get smarter with time and support tourism companies in delivering even better services.

  • Round-the-clock Service

Meeting and exceeding customer expectations regarding customer service is one of the numerous obstacles that any organisation, especially those in the tourism sector, must overcome. Getting support at any time of the day or night is one of the prime benefits  of using a chatbot for tourism. Chatbots powered by AI are always available and consistently responsive, in contrast, to support personnel. The unavailability of human operators during peak hours may hinder their ability to provide quick assistance. Chatbots, on the other hand, are not constrained by space or time. This is the biggest advantage since it fosters the development of long-lasting relationships and builds trust with clients.

Use Cases of a Chatbot for Travel Industry

  • Manage Inquiries 

Users may have inquiries regarding travel insurance, regulations and restrictions, anticipated road costs, etc., before making a final decision about their travel arrangements. Without a live agent present, chatbots can effectively respond to FAQs and handle customer concerns.

  • Complete Reservations

The chatbot can ask about user details, ID or passport information, and the number of children travelling with the user when users decide on a travel itinerary, such as a flight or a hotel. Additionally, the chatbot offers a way to make credit card payments, complete reservations, and send itineraries through email or messaging.

  • Cross-Selling Opportunities

AI-enabled chatbots can study users’ behaviour and create cross-selling opportunities by giving customers airfare plus hotel packages, vehicle rental alternatives, and discounts on tourist attractions and activities. Additionally, they can offer recommendations and coupons for eateries or coffee shops with which the travel firm has partnerships with.

Take off your Journey of UX with Mtalkz

Conversational AI chatbots can make quick transitions of customers from brand recognition to purchase, making them excellent revenue maximisers for any business. Not just in the tourism sector but also in the hotel sector, artificial intelligence is being deployed. With their exceptional ability to offer effective personalisation, address issues, and gather feedback, AI-powered chatbots contribute to a rich, enduring customer experience. Additionally, chatbots have been scientifically shown to enhance conversion rates and sales, making the initial investments fully justified. 

Original Article - https://mtalkz.com/chatbot-for-travel-industry/


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Abhishek is a strategic Sales Leader focussed on revenue growth and solution sales. In the past, he has worked with corporates like IBM, Bharti Airtel, Reliance Jio, State Bank of India, Sony, Applied Materials, Pernod Ricard, Walmart, Safexpress, Indian Oil, Marico, Bharti Infratel, Reckitt Benckiser, and Canara HSBC Oriental Insurance company among others. He holds an engineering degree from IIT Roorkee, an MBA from IIM Indore, and a PGPX from Anderson School of Management, University of California. He is generally respected in the professional circles for his deep understanding of enterprise profitability, and his ability to bind multiple business aspects together for securing a competitive advantage. He is an ardent cyclist and a yoga enthusiast.

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