Major reports from the World Travel & Tourism Council (WTTC) and Microsoft highlight the transformative power of Artificial Intelligence (AI) for the Travel & Tourism sector, signaling a commitment to a digital future with unparalleled customer experiences.

The first in a series of AI reports, announced during the global tourism body's event at FITUR and in collaboration with WTTC's Industry Partner, Microsoft, is set to redefine Travel & Tourism standards and calls on the sector for greater integration of these technologies.

As a global leader in Travel & Tourism, WTTC is committed to driving innovation and supporting the sector in adopting AI and other cutting-edge technologies. To promote sustainability and excellent customer experiences, WTTC recognizes the crucial importance of AI in revolutionizing the sector.

Throughout the traveler's journey, WTTC believes that AI can play a fundamental role in offering a personalized and enhanced experience both now and in the future.

This technology can boost personalized recommendations and marketing strategies by analyzing traveler data, optimizing pricing strategies through real-time adjustments, and offering instant responses and refined interactions via sophisticated AI-powered chatbots.

The report also highlights that AI capabilities extend to predicting future demand patterns, efficiently allocating resources, and providing valuable insights for governments and stakeholders in Travel & Tourism.

This contribution can be crucial in promoting sustainability through efficient resource management by monitoring and minimizing environmental impacts, ensuring a more responsible and sustainable sector.

Julia Simpson, President, and CEO of WTTC, said: "As we navigate the ever-changing landscape of Travel & Tourism, AI emerges as a catalyst for positive change.

"The transformative capabilities highlighted in this report demonstrate that AI is not just a technological advancement; it is a strategic tool that can personalize the customer experience, drive sustainable improvements, and create real-time pricing models."

Julie Shainock, Managing Director of Travel, Transport & Logistics at Microsoft, said: "Using Microsoft's Azure OpenAI Models in the travel sector allows greater productivity for companies and provides a more personalized consumer experience.

"For travelers, the ability to provide more inspiration and personalized offers when booking, providing tools to proactively assist consumers while at the destination, and anticipating their needs with relevant information to improve their journey. For travel companies, GenAI is there to increase productivity, automate the predictable, and allow our human-centric approach to shine more in high-value moments in travel."

Despite increasing examples of AI applications in Travel & Tourism, the report reveals that the sector lags behind other consumer-facing industries in AI adoption. The surge of AI across various sectors last year is now a relevant force, and the Travel & Tourism sector must act now to leverage its impact.

Challenges that Travel & Tourism businesses must overcome include a shortage of AI-skilled workers, limited AI infrastructure, and the absence of a formal 'AI strategy' in many business plans.

Travel & Tourism businesses are urged to adopt AI as a strategic priority, investing heavily in talent to foster collaboration between humans and AI.

Amid concerns about AI's impact on jobs, the report addresses the potential for job creation, recognizing that although AI will be disruptive, it will, in turn, generate new opportunities.

In the quest for sustainable AI practices within the Travel & Tourism sector, responsible data management emerges as a crucial strategy.

Implementing measures such as data minimization, efficient storage, and responsible data disposal becomes pivotal for organizations seeking to minimize their carbon emissions when using new digital technologies and significantly reduce their AI environmental footprint.

The report explores AI applications in society and business, emphasizing the need for safe and responsible AI system design in Travel & Tourism, marking a milestone in the sector's commitment to innovation and sustainability, and showcasing AI's potential to shape a bright future for Travel & Tourism.