AI-driven technology in the luxury sectors enables efficient, accurate, and personalized services for high-margin clients.

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Reading many articles about the use of AI in different verticals, one stood out to me: the impact of AI in the Travel Industry. The top 5% to 10% in the industry, akin to the fashion world, enjoy margins far beyond the rest. However, some at this level risk losing their edge by underestimating the power of AI.

There are always those called the #Bizosaurus (Business Dinosaurus, ( “EmpreSaurios” in Spanish) who still believe that technology will eliminate the personal touch in the travel industry. However, this perspective overlooks the critical role AI plays, especially in the high-margin luxury travel sector.

AI is essential because it enables the handling of processes efficiently, accurately, and swiftly—capabilities that human resources alone cannot match, especially with the increasing number of modifications and personalized requests from customers. For the top 5% of travelers, who expect impeccable and bespoke service, AI ensures their needs are met seamlessly.

Furthermore, many goods and services in this category of clients, who are not sensitive to price elasticity, continue to dominate the best margins. These clients expect their suppliers to provide the best and fastest solutions for everything. This means that luxury travelers demand cutting-edge technology and top-tier service, which AI can deliver, ensuring a superior customer experience.

Moreover, the innovations and high-level services developed for the luxury travel market often trickle down to the rest of the industry, transforming these exclusive services into a sort of #prêtàporter for the remaining 95% who are focused on competitive pricing and shrinking margins. This is akin to the fashion industry, where top designers leverage more advanced technology than the entire prêt-à-porter sector to deliver cutting-edge creations.

In summary, AI is not just a tool for cost-saving in the travel industry but a crucial element in delivering the exceptional service that luxury travelers demand, and in turn, setting new standards for the broader market. It enables businesses to meet the high expectations of their most profitable clients, who look for speed, efficiency, and innovation from their service providers.