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    From potential to performance by design

    TCS AI for Business Study findings – Travel and hospitality

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    Reimagining business with AI

    Artificial intelligence (AI) offers the travel and hospitality industry new opportunities to expand its partner ecosystem and elevate customer experiences like never before.

    The TCS AI for Business Study shows the majority of senior executives in the industry believe the latest advancements in AI have the potential to transform their business. This report provides this and other unique insights into how travel and tourism companies are moving forward to create effective AI strategies for their enterprise. It explores:

    • Driving factors for AI implementations in the travel and hospitality industry.
    • AI’s role in redefining travel and hospitality.
    • Emerging AI trends in customer experience.
    • Evolving skills and roles.
    • AI strategies for travel and hospitality.
    • Alignment of AI implementations with business results.

    Download the full report

    The transformative power of AI

    More than half of executives surveyed believe that AI will have a significant impact on the travel and hospitality industry.

    Travel and Hospitality Executives Survey

    An image depicting the travel and hospitality associates have a positive sentiment towards AI.

    Travel and Hospitality Executives Survey

    Close
    Travel and Hospitality Executives Survey
    Travel and Hospitality Executives Survey

    Yet there’s no consensus on AI adoption strategies and not enough metrics to measure success.

    Current state of AI

    Top AI Challenges – Travel and Hospitality Industry

    A figure listing the top three challenges faced by the travel and hospitality industry, such as existing contracts and relationships, current IT infrastructure, and the cost of deployment.

    Top AI Challenges–Travel and Hospitality Industry

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    Top AI Challenges–Travel and Hospitality Industry
    Top AI Challenges – Travel and Hospitality Industry

    Challenges around generative AI

    The study reveals the top five strategic challenges for generative AI (GenAI) in the travel and hospitality companies:

    • Lack of IT readiness
    • Shift towards automation and efficiency
    • Ethical and responsible AI use
    • Compliance challenges
    • Cultural shifts

    Not enough metrics for ROI

    As the integration of AI into business processes accelerates, expected financial return on such an investment becomes increasingly significant. But 73% of travel and hospitality companies said they lack adequate metrics and KPIs for their current AI deployments. Without adequate KPIs for AI-enabled operations, measuring return on investment and getting future buy-in is challenging.

    Key findings—future of AI

    More than half of travel and hospitality executives surveyed believe AI will augment and enhance human capabilities, enabling people to focus on higher-value activities that require creativity, empathy, and strategic thinking.

    • 43% are excited or optimistic about AI’s potential impact on their business.
    • 54% of companies think human strategic decision-making and creativity will remain essential for competitive advantage.

    As AI becomes more advanced and part of “business as usual,” the role of humans in the workplace will evolve.

    • Within the next three years, 49% of travel and hospitality companies expect most of their employees will be using GenAI on a daily basis.

    Innovation will be a focus for future AI implementations.

    • 70% of Pacesetters—the more financially successful companies we surveyed— in this industry are primarily focused on using AI to spur innovation.

    TCS recommendations

    • Technology
    • Leverage AI
    • Loyalty
  • Technology
  • Leverage AI
  • Loyalty
  • Use technology to understand your customer

    • Forecast trends in travel demand, customer behaviour, and market conditions.
    • Predict demand for rooms, flights, and rental transportation to optimize inventory levels and reduce costs.
    • Identify high-value customers and tailor marketing efforts accordingly. 

    Fully leverage AI

    • Use AI to utilize customer data and preferences to offer personalized travel packages, accommodation, travel recommendations and other products and services based on customer behaviour and preferences.
    • Implement AI-powered chatbots for efficient customer support, handling inquiries, and providing real-time assistance.
    • Utilize AI to identify fraudulent transactions and protect customer data.
    • Employ AI algorithms to optimize pricing based on demand, competition, and other factors.

    Build customer loyalty

    • Monitor social media and customer reviews to identify areas for improvement and enhance overall guest experience.

    Elevate customer engagement with AI

    Build deeper connections with your customers by leveraging AI to deliver personalized, proactive, and meaningful experiences at every touchpoint in their journey. AI empowers your company to anticipate customer needs, tailor interactions, and provide targeted information that not only enhances customer satisfaction but also sets your brand apart, strengthening loyalty, and driving long-term success.

    Empower your enterprise for the AI-driven future

    Prepare for success by harnessing AI's potential to expand revenue opportunities and drive innovation. Embrace AI not just as a tool for automation, but as an accelerator for growth that will redefine roles, empower your workforce, and unlock new value. In the semiconductor industry, Generative AI is key to revolutionizing chip design, streamlining operations, and setting new benchmarks for best practices. By strategically adopting AI, your enterprise can lead the way in the digital era, staying ahead of the curve and thriving in a rapidly evolving landscape.

    Scale

    Prioritize enterprise readiness for scaling up successful pilot programs.

    Success in the controlled environment of a pilot/POC exercise is no guarantee of success in scaled productionization. Invest in initiatives to prepare your data, tooling, architectures, and people for enterprise-wide AI adoption.

    About the study

    TCS’ Thought Leadership Institute conducted an anonymous study of approximately 1,272 senior executives with P&L responsibilities in 12 industry sectors across Asia, Europe, Nordics, LATAM, North America, and the United Kingdom and Ireland, with respondents having an annual revenue of $5 billion to $100 billion. The travel and hospitality industry findings are based on feedback received from 67 survey respondents. This global study examines how CEOs, LOBs, directors, and business line managers are preparing their business to be AI-ready, focusing on aspects such as their strategy around operations, talent, and future implementation plans. The study also provides best practice recommendations based on these insights.

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