TravTalk Middle East Online Magazine
The World Travel & Tourism Council (WTTC) predicted that 2024 will be a record-breaking year for the travel and tourism sector, with its global economic contribution expected to reach an all-time high of US $11.1 trillion. The continuous advancements in AI and VR, coupled with increasing consumer acceptance, indicate that these technologies will continue to be embedded into the travel experience.
The travel industry is being transformed through new technologies such as Artificial Intelligence (AI) and Virtual Reality (VR), which promise to redefine travel experiences. Such technologies will not only enhance accessibility but also support more immersive, personalised, and efficient experiences for tourists. AI has become a transformative force, not only reshaping businesses globally but also closer to home, where the Middle East, Turkiye, and Africa (META) region are leading in this technological revolution. According to the latest forecast from the International Data Corporation (IDC), AI spending in the META region is expected to surge at a five-year compound annual growth rate (CAGR) of 37 per cent, reaching up to a projected US $7.2 billion by 2026. The rapid development of AI and VR technologies represents new opportunities for the travel industry. However, the extent to which it will permanently disrupt how we travel is debated.
AI has thus far significantly impacted the travel sector, with applications such as chatbots, virtual assistants, personalised recommendations, and predictive analytics transforming the way people plan and experience their journeys for several years. In many ways, travellers have been interacting with AI for some time. According to Statista’s report, VR headset sales are projected to reach 35 million units annually, with the VR market valued at US $44.7 billion in 2024. This marks a crucial moment for the travel and tourism industry. As VR adoption increases globally, travel and tourism companies can integrate VR into their marketing and sales strategies to boost engagement and conversions. Implementing technologies like VR and AR will allow the travel industry to create unique and rewarding experiences for guests, and to develop long-lasting relationships with them. By embracing these emerging technologies, travel companies can better meet customer needs and remain relevant in a rapidly evolving market.
AI-powered systems offer personalised travel suggestions, real-time customer service, and operational efficiency by forecasting demand and optimising pricing. AI also improves travel security with facial recognition systems and enhances the passenger experience. Additionally, AI algorithms can recognise and respond to objects in a virtual setting. For instance, during a virtual museum tour, AI can bring artefacts to life, providing information and a curated audio guide. This technology enables tailored and engaging experiences for different tourists. Advanced AI algorithms can provide real-time, personalised tours, offering detailed insights into each piece, responding to the user’s questions, and even adapting the tour based on the user’s interests and previous interactions.
One of the most popular applications of VR in travel is virtual tours. Companies like Google Earth VR offer immersive 360-degree tours of landmarks, museums, and cities worldwide. This technology allows potential travellers to experience a destination before deciding to visit, providing a realistic sense of place, and helping them make informed travel decisions.
As AI and VR technologies revolutionise the hospitality industry, adopting these technologies can boost operational efficiency and the overall experience.
