While we see the markets move on rumors of what AI may do to industries – both to the good and the bad – the fact is, there are companies that are already reaping the benefits of what’s already happening in these key sectors, like Travel and Tourism.

Here are a handful of examples of how AI is already having an impact on travel and tourism services:

• Managing pricing: Prices can move meaningfully in relatively short periods of time. Algorithms that decide what pricing should look like at different times have been in place for many years, but these algorithms get smarter and more efficient, thanks to the help of AI. Dynamic pricing allows for real time adjustments for the prices of hotel rooms, flights, experiences and trips, and so on, driven by data, such as what competitors’ prices look like and what customers are looking for right now. With better pricing algorithms, revenues can be maximized, while companies can also make sure that capacity is better managed – half empty hotels or airplanes isn’t good for airlines, hotels, or customers.
• Eliminate language barriers: Often, traveling means visiting other cultures, where language barriers exist. AI lowers those barriers. Artificial intelligence tools are providing fast and relatively reliable translation of both text and speech, including for things like restaurant menus that tourists can photograph and have AI translate for them.
• Customer service: Tourists often have questions regarding all kinds of things before and during trips: What are baggage rules for their airline; what documents should they bring; what vaccinations make sense for the country they want to visit; and so on. AI-powered chatbots can help answer such questions quickly, without consumers having to hang in endless loops on their phones. Chatbots and smart assistants can even help with trip planning, e.g. by suggesting places to travel to based on a user’s interests and budget.
• Security: AI tools can make security tasks quicker and cheaper. For example, in airports, facial recognition tech can be used to automate check-in or border controls. AI forecasting can also predict weather-related dangers, allowing operators to find alternative routes, giving more time for evacuating facilities prior to major storms, and so on — making tourism safer and thereby more attractive.

 Investing in AI Tourism

Tourism pure-plays that employ AI for pricing, customer service, etc. include Booking Holdings (NASDAQ: BKNG), Airbnb (NASDAQ: ABNB), or Expedia (NASDAQ: EXPE).

Investors can also go with tech companies instead that aren’t tourism pure-plays despite benefitting from more and more AI use. Alphabet (NASDAQ: GOOG), for example, is a major cloud computing provider for all kinds of companies in the tourism industry, and Amazon.com (NASDAQ: AMZN) does the same. Salesforce (NASDAQ: CRM) offers customer relationship management tools that employ AI, allowing airlines, hotels, and cruise lines to better cater to their customers.

Investors that are interested in broader exposure to the world of tech and Artificial Intelligence should take a look at our top picks.