With 2018 around the corner, Phocuswright and PhocusWire are presenting snapshots of the 12 trends we think will be significant next year across six installments.
Part one kicked off with the The Travel Moment and Customer-Centricity, while part two examined Search and Hotel Tech.
Today, we look at Artificial Intelligence and Bots.
This series forms the backbone of the PhocusWire Forecast 2018.
These 12 trends will be summarized in greater detail in a future Phocuswright Innovation report.
In addition, Phocuswright's analysts will take a deep dive on each of the trends we are showcasing over these next six days in analyses to be published throughout 2018.
Artificial Intelligence: the future of travel, according to who?
There has been incredible business investment in artificial intelligence - predicted to be more than $500 billion in 2017. And while the travel industry isn’t on the leading edge, there are specific applications in travel distribution.
These specific applications have limited capability; however, as the technology matures, the business opportunities are emerging.
The coming months will show what the AI business applications are and which AI companies are the travel business leaders, as well as which are the likely beneficiaries of the application of AI technology.
Bots: a bright future, or destined for the scrap heap?
Chatbots have generated a lot of buzz over the past couple of years, with visions of a future filled with friendly, AI-powered digital travel assistants capable of anticipating our every need.
The rising popularity of mobile messaging and voice-based digital assistants, paired with ever-improving AI, should make bots a smart bet. But we aren’t there yet.
Travel players have dabbled in chatbots on platforms like Facebook Messenger, with mixed results, and true AI-based chatbots are in their infancy.
While chatbots have the potential to yield cost savings, drive bookings and deliver a more personalized experience, travel companies will need to rapidly improve existing conversational interfaces to keep travelers interested.