What Travel and Hospitality Execs Need to Know About AI in 2025

If 2023 was defined by panic and wonder over AI, and 2024 was spent experimenting with it, consider 2025 the year AI will really be put to work. 

In the travel and hospitality industry, where AI adoption is already accelerating, the coming year will see more widespread use of personalization and greater optimization of operations. Add to that improved capabilities in predictive analytics, which hold huge promise to relieve the pain points every traveler has faced, and companies are looking at efficiency gains that touch nearly every facet of their business.

In our upcoming webinar “Data and AI Predictions for Travel and Hospitality in 2025,” we will explore the trends driving the industry, including best practices on how companies can leverage generative AI capabilities to better serve customers while maintaining personal connections. 

From aviation to resorts to travel tech companies, here are a few more ways we expect to see the industry changing thanks to AI.

People, of course, hit the road for many different reasons: for work or for leisure, to visit family or to attend a function. Depending on the circumstances, though, the needs and priorities of a single traveler can change dramatically. Someone looking for budget-friendly family options one week may be more than willing to pay premium prices for a business trip the next. 

In 2025, AI-driven personalization will reach new heights by recognizing and responding to those different personas, from initial planning to real-time adjustments during a trip. While basic personalization through AI is nothing new, the next few years will bring more sophisticated, context-aware systems that not only understand who you are and where you’re going, but why. And while companies will need to carefully balance this personalization with privacy concerns, the ability to understand more deeply the motivations of a traveler at any given time will give customers a better overall experience and offer more revenue possibilities to the brands that serve them.

The travel industry loses billions annually to disruptions — weather events, labor strife, maintenance issues, to name a few. In 2025, companies will use AI to further optimize operations, particularly in times of crisis. AI systems will help predict when to hold flights for connecting passengers, optimize staffing levels based on demand patterns and automate rebooking during disruptions. Rather than replacing human workers, AI tools will augment their capabilities, helping them make more-informed decisions and respond quickly to changes. 

In 2025, we will see increased data collaboration across the travel ecosystem — from airlines to hotels to other travel providers. If a traveler’s flight is delayed, for example, their hotel and car rental company will automatically adjust their reservations accordingly. While technical and privacy challenges exist, the potential benefits of such secure collaboration will drive adoption. Companies that successfully participate in these data-sharing ecosystems will be better positioned to deliver the seamless, responsive experiences that travelers increasingly expect.

In 2025, AI will bolster core travel and hospitality functions, such as workforce management and revenue optimization. Airlines, hotels and other travel providers will leverage AI to dynamically forecast demand, optimize staffing schedules and automate pricing adjustments in real time. For instance, workforce management systems powered by AI will predict peak periods and schedule staff accordingly, reducing labor costs while maintaining service quality. Similarly, AI will analyze vast data sets, including booking patterns, market trends and customer preferences, to fine-tune revenue management strategies, maximizing profitability and customer satisfaction. Though challenges remain in implementing these AI-driven solutions at scale, businesses that embrace this shift will gain a competitive edge by streamlining operations and enhancing the guest experience through intelligent, responsive decision-making.

AI will increasingly move beyond customer-facing applications to become a valuable resource for employees across the travel and hospitality industry — whether frontline staff, customer support teams or management. For example, AI could help provide hotel staff real-time recommendations on upselling opportunities or personalizing guest preferences, enabling them to deliver a superior customer experience. Similarly, airline gate agents might use AI to dynamically assess seating configurations or manage last-minute rebookings for disrupted travelers more effectively. AI will also play a role in upskilling employees, offering personalized training programs based on their unique learning styles and career paths. By automating repetitive tasks and enhancing employee capabilities, AI will not only improve operational efficiency but also increase job satisfaction and retention and allow employees to focus on higher-value, guest-focused activities. 

To learn more about AI adoption across industries, download the Snowflake AI + Data Predictions 2025 report to gain insights on how businesses can navigate the ever-evolving AI landscape today, with commentary from top executives such as Snowflake’s CEO, Sridhar Ramaswamy, Snowflake’s Distinguished AI Software Engineer Yuxiong Xe and other experts.

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