The travel industry is experiencing a technological change as artificial intelligence (AI) reshapes how businesses function, connect with customers, and drive progress. AI is redefining the tourism landscape, offering personalized travel suggestions and improving booking systems. However, many travel companies are still figuring out how to fully adopt AI in their operations for long-term growth.

At the 2025 Skift Data + AI Summit in New York, experts Vivek Bhogaraju and Mayank Gandhi discussed the challenges and opportunities that come with adopting AI in the travel sector. They highlighted how travel companies can shift from being AI-curious to AI-native, transforming the tourism experience for everyone involved.

The Shift Towards AI in Travel
The tourism sector is fast-paced, influenced by changes in consumer behavior, global travel disruptions, and evolving digital technologies. As the world becomes more connected, travelers expect more personalized, efficient, and intuitive experiences. For travel companies to remain competitive, embracing AI is now essential.

AI has the potential to change the game in various areas. It can improve operational efficiency and enhance customer service, opening new paths for growth. However, implementing AI fully demands dedication, not only in terms of spending but also in changing company culture and infrastructure.

Building an AI Culture: Starting from the Ground Up
According to Bhogaraju and Gandhi, the first step to becoming AI-native is fostering a culture of experimentation within the organization. Travel companies should promote a mindset that welcomes risk-taking and innovation. Instead of fixating on immediate returns, companies ought to focus on learning and testing to establish a strong base for integrating AI.

Starting small is key—initiate AI-driven projects that tackle specific challenges or take advantage of opportunities in the organization. For instance, chatbots and AI-powered customer support can enhance service by providing quick assistance, while data analytics can help identify traveler behavior, enabling businesses to anticipate customer needs.

These AI-driven solutions are not one-size-fits-all. It’s essential to understand that implementing AI takes time, careful thought, and a strategic approach. Bhogaraju underscores the importance of evaluating the existing technology landscape, pinpointing shortcomings, and laying out a plan for AI adoption. Travel companies must recognize the foundations of AI and partner with long-term technology providers to achieve successful integration.

AI’s Role in Tourism Innovation
AI can revolutionize tourism by personalizing each traveler’s journey. AI solutions can optimize everything from flight bookings and hotel reservations to customized travel itineraries. By analyzing large datasets, AI can anticipate traveler preferences and offer tailored suggestions for destinations, activities, and services, improving the overall travel experience.

For example, personalized AI apps can track what a traveler likes and recommend attractions or dining options that match their tastes. Additionally, AI can enhance the booking experience by providing real-time updates on flight availability, pricing, and potential delays, helping customers make well-informed decisions.

Moreover, AI can streamline travel operations and boost industry efficiency. Automated systems can handle customer queries, manage payments, and provide real-time updates on services like check-ins, room availability, and baggage tracking. As AI use increases, these efficiencies will lead to better customer experiences and cost savings for companies.

Investment in AI Ecosystem and Long-Term Transformation
One critical lesson from Bhogaraju and Gandhi is that adopting AI is not a rapid solution. Companies must invest in a solid AI ecosystem, which includes not just the right technology but also the people and framework to support it. Implementing AI will require significant investment in upgrading technology and hiring skilled personnel to drive AI innovation.

AI solutions often need refining and revising. Travel companies must be patient and willing to try different approaches until they find the right combination that delivers lasting results. The benefits of this transformation are clear. Companies that invest in AI now will position themselves to lead the market in the coming years with more efficient operations and stronger customer relationships.

As companies develop their AI ecosystem, it’s vital to create diverse teams to ensure that the AI strategy matches business goals. This means not only involving technical specialists but also coordinating marketing, operations, and customer service teams to integrate AI effectively.

Challenges of AI Integration
Despite its advantages, adopting AI in the travel industry comes with challenges. The complexity of AI technology, the need for large amounts of data, and the pressure to show concrete returns can make the transition intimidating for many companies. There is also the issue of data privacy, as customers seek greater transparency and control over their personal information.

Resistance to change is another hurdle. Many employees may feel threatened by the increasing presence of AI at work, fearing job loss or diminished roles. This is why Bhogaraju and Gandhi stress the importance of a collaborative environment where AI is viewed as a tool that supports human roles rather than replaces them.

Looking Toward the Future: AI-Native Travel Companies
In the future, the companies that embrace AI will shape the travel industry. The focus of AI adoption should be on long-term transformation rather than immediate returns. As AI continues to advance, it will allow travel companies to offer increasingly personalized experiences, streamline operations, and achieve efficiencies that were once considered impossible.

To truly embed AI in tourism, travel companies must see it as a long-term investment rather than a quick fix. AI will change every aspect of the travel experience, from how companies connect with customers to how travelers enjoy various destinations. It’s about creating a smarter, more efficient, and personalized travel system that benefits both businesses and customers.

Conclusion: The Path to AI-Native Tourism
The journey from being AI-curious to AI-native requires a commitment to innovation, teamwork, and investment. As the travel industry evolves, AI will play a vital role in shaping its future. Companies that adopt this technology will discover new opportunities, enhancing the travel experience for consumers while promoting growth and efficiency for businesses.

In the words of Bhogaraju and Gandhi, “AI is not just a tool—it’s the future of the industry.” The travel companies that successfully transition from AI-curious to AI-native will pave the way for the next era in tourism, one that is smarter, more connected, and focused on the customer.

References:

Skift, Vivek Bhogaraju, Mayank Gandhi, New York Tourism Office, U.S. Travel Association