Artificial intelligence, technology and digitalization shape the future of tourism

According to a report by Gemma Greenwood , published on the Arabian Travel Market Blog ( WTM Global Hub) , digital platforms, mobile apps and artificial intelligence are influencing the way travellers plan and book their trips, while innovations such as real-time updates and smart city infrastructure are redefining convenience and personalisation, at airports and destinations.

The near future promises even greater advancements, from virtual reality (VR) in travel planning to biometric boarding, which will not only make travel more seamless and personalized, but pave the way for a deeply connected and customer-centric era of travel.

This growing reliance on technology-driven connectivity will be in the spotlight at Arabian Travel Market (ATM) 2025, where industry leaders will explore these transformative trends. The event’s Travel Tech exhibition, for example, will delve into how innovations such as AI, high-speed Wi-Fi and VR are creating personalized and immersive onboard entertainment, shopping and service experiences, enabling airlines and service providers to anticipate and meet customer preferences like never before.

Digital platforms drive change

As the era of manual bookings and paper itineraries rapidly fades and customers seek instant results at the touch of a button, travel professionals are turning to digital platforms and apps to manage entire trips, improving accuracy, speed and customer satisfaction.

Today, tools like TripAdvisor, Booking.com and Google Maps are indispensable, offering real-time reviews, prices and navigation assistance, saving users time and effort.

The figures demonstrate the demand for digital with:

83% of travelers now rely on smartphones to research destinations, book travel, and manage itineraries (Statista).
63% of global travel bookings in 2024 will be made through apps, with an additional 10% on the mobile web (youappi).
76% of global travelers now actively seek out apps that reduce friction and stress in their travels (youappi).

This growing reliance on global travel apps is reflected in the rapid expansion of the market, with sector-driven revenue tripling in five years to reach $1.2 billion by 2024 (Statista) and the industry projected to be worth $1.45 trillion by 2032 (Market.us).

Artificial intelligence (AI) is further transforming travel planning. According to Global Rescue’s Fall 2024 Traveler Confidence and Safety Survey:

1% of experienced travelers now use AI tools for destination research and itinerary creation.

Nearly 70% of these users rate AI as “very” or “mostly” helpful, particularly in streamlining research and providing personalized suggestions based on parameters such as trip duration, activities or budget.

10% of travelers use AI applications to find accommodation and restaurants and 2% to coordinate flights (2%).

Innovations such as chatbots and AI-based virtual assistants are streamlining the process even further, helping users organize their schedules, secure hotel reservations, and find the best deals. Augmented reality (AR) travel apps add another layer, used to preview landmarks, explore destinations, and plan itineraries through immersive experiences.

Predictive technology adapts routes

AI-powered insights are also enabling travel providers to anticipate customer needs, delivering experiences and journeys that seem personally tailored to increase loyalty and satisfaction.

By analyzing past searches, bookings, and interests, a new era of hyper-personalization is emerging. According to the Skift State of Travel 2024 report, 70% of travelers now prefer personalized recommendations, significantly improving satisfaction and strengthening ties with service providers.

Technological innovations such as wearable devices (smart watches and fitness trackers) further enrich the travel experience with real-time information, navigation support and language translation, all within easy access.

Looking ahead, AI’s influence will continue to grow. A study by Accor predicts a surge in demand for AI-based travel planning, with one in seven UK travellers expected to use an “AI itinerary” by 2025.

Personalization reaches new heights

Personalization is also creeping into the travel experience itself, creating opportunities for savvy travel agents and operators to showcase these services when designing itineraries for customers.

A new report from Amadeus and Globetrender identifies “personalized flights” as a key trend for 2025, combining smart technology with personalized flight experiences.

Airlines are adopting algorithmic entertainment systems that curate content, from movies and TV shows to personalized ads, based on passengers’ preferences as members of loyalty programs. These hyper-personalized systems are transforming in-flight entertainment into an experience that feels as personalized as streaming services at home.

High-speed connectivity is playing a central role; with providers like SpaceX’s Starlink enabling seamless in-flight streaming, passengers can enjoy their favourite content in the air without interruption. Qatar Airways has been leading this innovation, recently launching the world’s first Boeing 777 equipped with Starlink Wi-Fi.

Emerging technologies such as virtual reality (VR) are also improving high-end air travel. In 2024, Beond, a luxury airline startup, introduced the Apple Vision Pro headset on its route to the Maldives, offering first- and business-class passengers immersive entertainment options.

Back on the ground

Airlines are revolutionizing corporate travel management with advanced pre- and post-flight technologies that help bookers and plan travel. Biometric tools, such as facial recognition and fingerprint scanning, streamline check-in and boarding, eliminating the need for physical documents. These innovations provide a safer, more efficient, and more personalized travel experience for business travelers.

An Amadeus report highlights the widespread adoption of biometrics by airlines, airports, corporate travel managers and hotels, leading to a 14% increase in technology investment by 2024. Additionally, a staggering 98% of airlines have implemented or are planning to implement biometric systems at their airport terminals, according to International Airline Review, and 60% of airlines are set to incorporate biometrics at essential passenger touchpoints such as check-in, baggage drop, lounge access and boarding within the next five years.

Dubai-based Emirates has reported significant reductions in boarding times thanks to such systems, which have already been rolled out at many major airports globally, and at neighbouring Abu Dhabi Zayed International Airport, the ‘Smart Travel’ initiative aims to integrate biometric authentication at all security checkpoints by 2025. Using data from the UAE’s Federal Authority for Identity, Citizenship, Customs and Port Security, the world-first system will automate passenger verification for a seamless, contactless journey.

Globally, this trend is gaining momentum. The upcoming European Union Entry/Exit System , due to be launched in 2025, will replace traditional passport stamping with biometric identification , improving the speed, security and convenience of the airport experience.
Research from SITA reveals that shorter waiting times are a key improvement for passengers at airports (noted by 64% of respondents, ahead of other critical issues such as the ability to make a single booking for all legs (40%) or real-time notifications (34%)); these systems hit the mark, despite underlying concerns about privacy protection among some.

Airlines are also improving passenger satisfaction by eliminating a common travel frustration: lost luggage. Australian airline Qantas has integrated Apple’s AirTag technology, which allows passengers to track their bags in real time, speeding up the baggage retrieval process and providing added peace of mind.

Smart cities transform the destination experience

Smart cities like Singapore are setting new standards in travel experiences, where real-time data and digital infrastructure enable travel professionals to offer customers a seamless journey from start to finish.

The IMD Smart Cities Index 2024, which assesses 142 cities worldwide, highlights how the integration of advanced digital solutions in mobility, governance and sustainability transforms cities into friendly tourist hubs:

Zurich, which has been ranked first in this index for five years, demonstrates this with environmentally friendly transport, extensive digital infrastructure and inclusive programmes that improve the quality of life for everyone.

Singapore, which comes in fifth, optimises public transport through real-time data, contactless payments and its smart nation vision, which uses sensors to improve traffic flows. Commuters also benefit from extensive Wi-Fi coverage and tools such as SG Translate Together, a localised translation web portal.

Helsinki, ranked ninth, places social responsibility at the heart of its data-driven strategies. The city uses a virtual twin to simulate urban conditions; the Mobility Lab to optimise traffic flow with artificial intelligence; and initiatives such as the Helsinki Roadmap to avoid crowds while supporting local businesses as it guides tourists around the city.
Abu Dhabi, ranked 10th, prioritises smart mobility with autonomous driving and smart transport infrastructure, creating a seamless and sustainable travel experience.

Europe boasts a dense network of smart cities, many of which use smart solutions to address the challenges of overtourism. Barcelona’s interactive digital kiosks offer real-time updates on transport and attractions, while Amsterdam uses data from its City Card to distribute visitor traffic more evenly, improving both accessibility and sustainability.

All of these innovations reflect a broader commitment among smart cities to leverage connectivity to achieve more sustainable and tourist-friendly environments. By integrating digital tools with sustainability goals, they are creating environments where technology, efficiency and visitor satisfaction intersect.

What's next for technology?

Looking ahead, the travel industry will see agencies leverage real-time itinerary adjustments, ensuring each customer’s journey not only meets expectations, but exceeds them.

Keeping up with technological advances will be crucial to remaining competitive, and industry events such as ATM Travel Tech play a key role in the education process, not only by showcasing new tools and solutions, but by bringing together technology providers and senior industry executives to share expert knowledge.

The tools already available to agents are plentiful: virtual reality (VR), for example, can transform the travel planning stage by immersing clients in destinations before they visit. This platform is set to go beyond simple previews, offering a fully interactive way to explore accommodations, sights and activities, allowing for better-informed travel decisions.

Some travel companies are already experimenting: Sygic Travel VR offers free virtual tours of cities and famous landmarks with audio commentary; Marriott Teleporter uses an immersive VR experience to transport users to various Marriott properties around the world; and Airbnb 360 Experiences offers 360-degree virtual tours of its listings.

AI will design meticulous itineraries that adapt in real time to individual preferences and needs. Combined with augmented reality (AR) tools for on-the-ground exploration, these technologies will create deeply engaging and personalized experiences, whether through immersive cultural interactions or hyperlocal recommendations.

Sustainability will be at the heart of this evolution. From AI-powered carbon footprint trackers to digital platforms promoting environmentally friendly travel options, the next generation of travel technology will align connectivity with the growing demand for responsible tourism.

As these advancements converge, the travel experience will become increasingly customer-centric, immersive and environmentally conscious, setting a new standard for the travel industry in the years to come.
 

Por: Gemma Greenwood / Arabian Travel Market Blog / WTM Global Hub.