The global market for use of artificial intelligence (AI) in tourism industry is poised for substantial growth, with projections indicating it will reach USD 13.38 billion by 2030, up from USD 2.95 billion in 2024.

This remarkable growth, at a Compound Annual Growth Rate (CAGR) of 28.7 pc from 2024 to 2030, underscores the increasing role of artificial intelligence in transforming the tourism industry. One of the most significant areas where AI is making an impact is in enhancing security measures.

Advanced AI-driven technologies, such as facial recognition, biometric authentication, and AI-powered surveillance systems, are becoming essential tools for improving safety across airports, hotels, and popular travel destinations. These systems are not only increasing the efficiency of security processes but also helping to detect potential threats in real time, allowing for a more proactive approach to safety.

But not long ago, even a year or two ago, for many tour operators, the idea of using AI in the travel industry was initially a distant concept. Guru Charan Thatha, Managing Director of Holiday In Times, a Hyderabad-based travel agency, initially approached the idea of AI with skepticism. At first, the concept of AI seemed distant and futuristic. Thatha had doubts about how such advanced technology could be integrated into his business, particularly in a way that would benefit his customers and improve operations. However, his perspective began to change when he encountered AIpowered solutions at a travel industry conference. He saw the tangible benefits these technologies brought to other industries, sparking his curiosity about what AI could do for his agency.

“At first, I didn’t see how AI could apply to travel. I thought it was too complex for our industry and didn’t think it would add much value. But as I started learning about how AI was revolutionising other sectors, it became clear that it had the potential to change everything. From personalising customer interactions to improving efficiency, AI could optimise our services in ways I hadn’t imagined. It became the perfect tool to not only enhance the traveller experience but also to stay competitive and relevant in an industry that’s rapidly evolving,” Thatha tells India Outbound.

Guru Charan Thatha

From the perspective of the tourism businesses, AI-based security solutions are revolutionising how identity verification and surveillance are handled, significantly improving traveller experience while maintaining high security standards. At check-in points or border crossings, facial recognition technology accelerates identity verification, reducing wait times and streamlining operations. This technology makes processes more efficient compared to traditional methods, saving time and enhancing convenience for travellers.

Furthermore, AI surveillance systems are capable of monitoring large areas, scanning for suspicious activities and alerting authorities instantly. By enabling more rapid responses to potential threats, AI helps ensure a safer travel experience, making the entire journey more secure and hassle-free. These innovations are not only improving operational efficiency but also fostering a safer environment, instilling confidence among travellers and enhancing their overall experience.

“As a travel agency, we have seen first-hand how security advancements like AI-based facial recognition and surveillance systems are making a real difference in the travellers’ experience. Not only are these technologies reducing the hassle at checkpoints, but they also offer a greater sense of safety, which is increasingly important to our clients. With AI’s help, we can assure our customers that their safety is prioritised while they enjoy a smooth, stress-free journey,” he adds.

AI is making a significant mark on the travel industry, transforming the way people plan, experience, and reflect on their journeys. Though AI’s integration into tourism is relatively recent, its origins in travel solutions date back to the early 2000s when basic algorithms began optimising flight search engines and hotel booking platforms. Today, the technology has evolved to encompass sophisticated tools such as machine learning, natural language processing (NLP), and predictive analytics, enabling seamless, personalised, and secure travel experiences.

AI’s transformative power extends beyond simplifying processes to fundamentally changing how tourism businesses operate. Machine learning allows companies to analyse vast amounts of data, uncover trends, and improve operational efficiency. This technology powers dynamic pricing models and customised promotions, offering travellers tailored experiences based on their preferences. Similarly, natural language processing has made chatbots and virtual assistants indispensable for customer service.

AI’s transformative power extends beyond simplifying processes to fundamentally changing how tourism businesses operate

These AI-driven tools efficiently manage customer inquiries, providing accurate and prompt responses, and enhancing the overall user experience. Predictive analytics, another groundbreaking application of AI, enables businesses to anticipate booking patterns, forecast demand, and even predict airline delays, helping improve decision-making and customer satisfaction.

As artificial intelligence becomes an integral part of the travel industry, many tour operators in India are embracing its potential to transform their services. Ravi Kumar, the founder of DHT Holidays based in Mahipalpur, New Delhi, is among the growing number of travel professionals leveraging AI to enhance customer experiences. From crafting highly personalised itineraries to optimising operations, Kumar highlights how AI has not only streamlined planning but also brought a new level of customisation to the industry.

Ravi Kumar

“AI has revolutionised how we plan itineraries for our clients. Using advanced algorithms, we can now recommend destinations, hotels, and activities tailored to individual preferences, past behaviours, and even budget constraints. It is like having a supercharged assistant working round the clock to analyse data and create a dream vacation for each customer. However, we believe technology alone is not enough. Personal interaction still plays a vital role. By combining AI’s efficiency with the human touch of direct conversations, we ensure that clients feel valued and understood, creating a relationship that goes beyond transactions,” Kumar tell India Outbound.

In an era where sustainability is becoming a cornerstone of the travel industry, operators are turning to AI to drive ecofriendly practices. From optimising energy consumption to recommending sustainable travel options, AI is helping the industry align with the values of environmentally conscious travellers while contributing to global efforts for sustainable tourism.

“Sustainability has become a major focus in the travel industry, and AI has been a game-changer. With tools that optimise energy use, suggest eco-friendly options, and even predict peak travel times to avoid overcrowding, we are able to design greener travel experiences. AI also empowers us to monitor resources in real-time, helping reduce waste and lower our carbon footprint. This not only appeals to environmentally conscious travellers but also aligns with global efforts to promote sustainable tourism. Yet, as powerful as AI is, it is our responsibility as operators to implement it thoughtfully, ensuring it complements traditional values like personalised service and cultural sensitivity,” Kumar adds.

One of the most significant impacts AI is having in the travel industry is through customer service. Travel companies are increasingly using AI-powered chatbots and virtual assistants to handle customer inquiries, allowing for faster responses and 24/7 support. This technology is not only reducing the pressure on human agents but also improving the overall customer experience by offering timely and accurate information.

“We are using AI to deliver a more personalised experience to our customers, providing them with real-time assistance for everything from booking to post-travel inquiries. AI allows us to understand our customers’ preferences, suggest relevant destinations and instantly respond to queries, making the entire process smoother and more efficient,” says Kumar.

Tour operators say they are also tapping into AI’s ability to analyse data and predict trends. This helps agencies forecast demand, optimise pricing, and offer tailored packages to clients based on their travel history and preferences. AI-driven platforms can also analyse social media data and customer feedback, enabling agencies to refine their offerings and stay ahead of market trends.

AI-powered systems are also allowing travel agencies to analyse customer data more effectively

“The AI tools we have integrated into our operations have helped us predict the best times to offer discounts and packages. It is not just about booking flights or hotels; it is about understanding the traveller’s desires and catering to them proactively. AI has become essential in improving both the quality of customer service and operational efficiency,” Sushil Chugh, a travel agent of Udan Choo agency tells India Outbound.

AI-powered systems are also allowing travel agencies to analyse customer data more effectively, identifying emerging trends, and understanding traveller preferences at a much deeper level. This predictive capability is helping businesses stay ahead of customer needs and enhance their offerings.

Sushil Chugh

“We have witnessed a significant shift in how our customers approach trip planning and booking, with AI playing a pivotal role in helping us track these changes in real time. The technology allows us to analyse customer preferences, behaviour, and emerging trends, enabling us to create more personalised and relevant recommendations. By leveraging AI, we are able to fine-tune our offerings, from curated travel packages to tailored itineraries, ensuring that each client receives a unique experience that aligns with their individual interests. AI is truly transforming the way we engage with our customers, improving the overall quality of service, and strengthening our relationships with them. As we continue to incorporate AI into our operations, we are confident that it will drive further innovation and enhance the personalisation of travel services for years to come,” Chugh adds.

Travellers, too, turn to AI

AI tools are also helping travellers to automate certain aspects of their trips, such as booking hotels or selecting activities, based on their preferences and past travel behaviour

AI is not just transforming the way travel agencies operate, but it is also empowering travellers themselves. With the increasing integration of AI in travel apps, websites, and platforms, travellers can now plan, book, and manage their trips more efficiently. From AI-driven trip planning tools to personalised travel recommendations, AI is enhancing the overall travel experience for customers, giving them more control and convenience in their travel choices.

Travellers can also access real-time information on flight prices, weather updates, local attractions, and even use AI to navigate through airports seamlessly with facial recognition or biometric check-ins. AI tools are also helping travellers to automate certain aspects of their trips, such as booking hotels or selecting activities, based on their preferences and past travel behaviour.

Aasian Bodra

“I have been using AI-driven apps for my travel planning for quite some time now, and I can’t imagine going back to traditional methods. What I love most is the personalisation, AI algorithms take my past preferences, search history, and even my mood into account to recommend destinations, hotels, and activities I would genuinely enjoy. I don’t have to spend hours browsing through options. The suggestions are more relevant and save me a lot of time. Even during my trips, AI tools like chatbots and voice assistants help me find directions or make last-minute changes to my plans on the go. It feels like having a personal assistant with me wherever I am, making my travel experience smoother and more stress-free. For someone like me who is always on the move, it is an absolute game-changer.

AI is truly making travel smarter and more convenient,” Aasian Bodra, a frequent traveller & Customer Exective at Teleperformance tells India Outbound.

As artificial intelligence continues to evolve, its impact on the travel industry is undeniable. From enhancing customer service and personalising travel experiences to improving security and supporting sustainability, AI is reshaping every aspect of the tourism sector.

As more travel agencies and operators in India and beyond adopt these technologies, the future of travel promises to be more efficient, secure, and tailo red to the unique needs of each traveller. With AI driving innovation, the tourism industry is poised to offer smarter, safer, and more personalised journeys for years to come.