AI Working towards a Customer Centric Travel and Tourism Industry a Comparative Analysis between the UAE and Qatar

Ali A and Jassim AIS

Published on: 2024-01-29

Abstract

The adoption of Artificial Intelligence (AI) technologies in the travel and tourism industry has reshaped the service delivery platform from being fully reliant on human interaction to including digital interaction between customers and virtual/physical technologies. Adopting AI-based technologies in the travel and tourism industry has brought numerous advantages for both consumers and service providers. Customers can smoothly arrange their visits and modify their plans hustle-free, while service providers are creating customer-focused packages to please the customers and maintain a competitive advantage in the market.

Purpose - Considering the rapid adoption of AI in GCC countries, especially in the UAE and Qatar, this study aimed to conduct a comparative study to assess how AI is responding to consumer needs in both countries.

Design/Methodology - Interviews were conducted with four experts working in five-star hotels in Qatar and the UAE. Interviews were analysed using the content analysis method. The questions were based on existing literature related to other countries and gaps in the existing literature about the UAE and Qatar concerning the subject at hand.

Findings - Results revealed that AI in the UAE and Qatar is being utilized for the sake of achieving better customer experience and enhance service levels. AI is a driver of customer service and generates recurrent visits. In the UAE AI can build brand loyalty, while in Qatar this finding requires further investigation. Based on the data aggregated, AI is found to reduce workload leading to a better customer experience while reducing employee stress levels. 

Originality – No research has yet compared AI in Qatar and UAE. Based on the results of this study, there is still wide room for development when it comes to AI. Application areas vary between shops, companies, hotels, malls, cinema theatres, restaurants, canteens, and recreational zones.  

Keywords

AI; Artificial Intelligence; Customer Service; Technology Advancement; Technology Development; Travel and Tourism

Introduction

Travel and Tourism is one of the fastest-growing industries worldwide. In the post-pandemic era, the total contribution of Travel and Tourism grew from 5.0% in 1999 to reach 10.3% in 2019 [1]. The total number of jobs supported by the Travel and Tourism sector reached 313 million in 2019 [1]. The expansion in this sector had various positive spillovers on other sectors as well, including but not limited to sports, construction, infrastructure development, technology, and medicine. Each standalone sector became highly interrelated with tourism. However, with the COVID-19 pandemic impacting the world, restrictions on mobility were implemented to mitigate the threat of the virus, leading to the complete stop of most business activities, especially those requiring human interaction, having on top of the list Travel and Tourism. The crisis had an unprecedented impact on the Travel and Tourism sector leading to the loss of around USD 4.5 trillion in overall contribution to the World’s GDP, dropping by 49.1% to reach USD 4.7 trillion in 2020 [2]. Furthermore, the total number of jobs supported by travel and tourism decreased by 18.5% to reach 272 million down from 313 million recorded in 2019. Not only international travel and tourism activities were affected by the pandemic but also domestic tourism. Domestic spending on travel, tourism, and leisure activities decreased by 45%, while international visitor spending declined by an unprecedented 69.4%. According to the UN World Tourism Organization [2] the tourism industry is not expected to reach pre-pandemic levels before 2024 if the recovery path follows the optimistic scenario. The Travel and Tourism sector is highly related to a plethora of other businesses including technology. Before the pandemic, technology gradually entered the travel and tourism industry to reduce the processes that are carried out manually [4]. Several functions have been automated such as the entry and exit stamps, security checks, baggage check-in and tracking, and many other aspects. On top of those is Artificial Intelligence (AI), which relies on big data [5]. The introduction of AI has revolutionized the way businesses interact with customers [6]. Artificial intelligence can be referred to as the development of computer systems to perform activities that require human intelligence [7]. As the travel and tourism industry has been an early adopter of technology, it has started to integrate AI in several features, such as tailoring travel and tourism packages for the customers and guaranteeing fast response in times when staff members are not present. These include different functions across the journey, including customs clearance, facial recognition, using biometrics for travel processes, virtual reality, language translators, mapping, and chatbots [4]. According to revfine [8], the presence of AI has become a necessity for travel and tourism industry as if it is being used to facilitate customer-client interaction and thus leading to better service delivery. According to Sanu [9], there are five hotels in the United Arab Emirates (UAE), which are making use of AI technologies, namely Atlantis Hotels in partnership with Digital Ecosystem, The Shangri-La Hotel, Abu Dhabi, Emaar Hospitality, and Marriott Bonvoy. The application ranged from using AI in mobile application, Virtual Reality, food processing and management systems, and guest relation systems [9]. The UAE is one of leading countries in the GCC regions investing in AI through a five-year vision tagged as “UAE CENTENNIAL 2071” [12]. A recent study conducted by Ali et al. [10] aimed at assessing how can AI help hotels in the UAE gain competitive advantage over their rivals. The study interviewed hotel managers in the UAE. Results revealed that AI is being adopted gradually by hotels in the UAE in various disciplines including, trip planning, reception service and room services. Furthermore, the study pointed out the benefits of using AI which include enhancing service delivery. On the same front, Qatar has established a national strategy for the adoption of AI in various disciplines, including travel and tourism [11]. Although applying AI in the travel and tourism industry can be beneficial for both sides, i.e., the service provider and the client, it can also create numerous challenges and complexities. According to Samala et al [4], introducing AI to the travel and tourism industry is not an easy task, the process requires enormous financial investment. In addition, the use of chatbots, robots, and other AI technologies could limit human interaction, thus restricting human interaction, which is the core of the hospitality industry [13]. Moreover, building AI technologies requires ensuring the safety and security of customer data, which is also a significant challenge [14]. Given that AI is being utilized in the travel and tourism industry in the UAE and Qatar, this research aims to conduct a comparison regarding the impact of AI on the industry’s performance in both countries.

AI In the Travel and Tourism Industry

Several issues have triggered the use of AI in the travel and tourism industry. The continuous developments in AI have attracted scholars’ attention. Between 2011 and 2014 the number of research done that connect AI to travel and tourism was round 5,216 research [15]. According to the latter authors, since 2015 there has been huge focus on AI in the travel and tourism industry, technological enhancements, and machine learning, and less attention towards social sciences, economics, and other business-related fields. Several studies were conducted during the past years by technology companies (Tata Consultancy Services, Google Travel, Trip Advisor, and Kayak) about the importance of AI in the travel and tourism industry [15]. For example, a survey done by Tata Consultancy Services found that 85% of travel and tourism providers use AI in their systems [16] According to Chawla [17], investments in AI technology reached USD 800 billion in 2020. Data published by Google Travel and Trip Advisor shows that 74% of travelers plan their trips using the internet, of which 45% use their smartphones [18]. Another survey conducted by thinkwithgoogle.com (2022) shows that 85% of travelers plan their travel activities after reaching the destination country and having the hands-on experience of the destination itself. Also, the survey shows that 36% of tourists prefer interactive booking that can showcase their previous preferences, 80% of which prefer self-service technologies over traditional travel services [18]. Furthermore, the survey shows that 90% of travelers prefer to receive push notifications on their mobiles about information relevant to their trip while they are in the destination countries. This is currently done through AI. Travelers activating the google travel app on their mobile or even their Gmail would receive push notifications concerning places to visit, time of their trip, departure gate, etc. Taken together, these results suggest that the customers’ tendency toward internet & self-service technologies is on the rise. These findings encourage service providers to incorporate AI within their current solutions to provide customers with a unique experience [4]. Another aspect that the customer is concerned about is the timeliness of the service. According to Kim et al. [19], many customers tend to shift to self-service online purchases because they are concerned about the timeliness of the service. The majority of the customers are not ready to accept the services before they travel; rather they expect these services at the time of their travel [4]. Several studies [20,21] indicated that customers prefer self-service technologies over traditional ways of doing business. These self-service technologies are largely possible, by the usage of Artificial Intelligence.

AI In the Travel and Tourism Industry in the UAE and Qatar

The prevalence of AI technology has become increasingly popular in the travel and tourism industry, especially in the GCC region. According to Ali et al. [10], five major hotels in the UAE are adopting AI technologies, namely, Atlantis the Palm, Shangri-La Hotel, Park Hyatt Abu Dhabi Hotel, Ritz-Carlton Abu Dhabi, and Grand Canal. Sanu [9] cited that adoption amongst those hotels ranged includes deploying guest automation systems, smart mobile applications, virtual reality, and food processing systems. In addition, the UAE Cabinet has approved a five-year plan to adopt AI in various hospitality disciplines including travel and tourism service outlets [12]. A recent study was conducted by Ali et al. [10] to assess the influence of adopting AI technologies on service delivery in five-star hotels in the UAE. The study interviewed managers in five-star hotels in the UAE. The study found that when deploying AI technologies those hotels were able to improve guest relations, improve employee performance, better allocate resources, and reduce operational expenses. According to an article published by the Hotelier Middle East Staff (2018), AI and automation are expected to increase hotel revenues by 10%.  Similarly, Qatar has established a national strategy for AI. The strategy involves extrapolating the AI experience in digital assistant programs, personalized recommendations from shopping websites, and smart map navigation to machine-driven language translation services [11]. In addition, AI is an enabler of providing better customer experience during the World Cup 2022. According to Trinetra [22], Qatar has deployed the city guide and transportation apps related to the world cup based on AI technologies to better serve tourists.

Challenges Facing AI Implementation in Travel and Tourism

There are several challenges and drawbacks of using AI in the Travel and. The most debatable point is that AI is replacing humans in most jobs, which is elevating the issue of unemployment globally and decreasing the sense of belonging [23,24]. The factor of substitution, i.e., when machines replace jobs that belong to humans has been on the rise since the First industrial revolution [5]. The latter stated that machines used to replace humans in simple and routine tasks but now with AI-driven technologies, robots have appeared and become capable of replacing humans in a lot of fields. This means that several jobs that are directly and indirectly related to the travel and tourism industry are at risk [5]. Although AI is rapidly expanding in the travel and tourism industry and its usage is being increased by service providers, the odds of this technology are still high (Reddy, 2006). According to Bowen and Morosan [25] a quarter of the hospitality industry’s workforce can be replaced by robots in the upcoming ten years. According to the latter authors, some repetitive jobs, such as the front desk of hotels could completely disappear, which started to materialize as discussed in earlier sections many 5-star hotels now have their own robotic workforce. This aspect has brought a lot of debate in the academic field over which jobs can be performed by machines. According to Sigala [26], robots can conduct jobs that are repetitive, while humans are better in jobs that require interaction, creativity, and complex problem-solving skills. However, Sigala [26] argues that it is not that robots are not capable of doing tasks undertaken by humans, it is simply more expensive to invest in this kind of technology to perform such tasks. Therefore, the initial perception of the community is that robots will replace the low-skilled jobs first and the medium and high-skilled jobs are the safest. Ivanov and Webster [20] argue that AI will not replace jobs in the services sector; it will rather liberate employees from routine tasks, consequently enhancing their skills and giving them more time for better service delivery. Overall, Artificial intelligence can pave the way for employees to think big, and that is what is defined by Benckendorff et al. [27] as the “AI augmentation and hybridization.” However, the probability of losing human touch remains the main concern for adopting AI in the hospitality industry [25] According to Laurent et al [28], no one can question that AI is reducing the cost associated with employment, and sometimes providing a unique experience to customers, yet human intelligence so far cannot be matched. Humans can deal with complicated situations and can ensure service correction and proper service delivery. Not all customers are fans of robots and chatbots.  Also, privacy is another issue of concern. Some platforms that use AI share this data with third parties and sometimes sell it. We have seen many scandals over the years, especially with Facebook. Bulchand-Gidumal [5] argues that the adoption of AI creates ethical challenges that needs to be tackled. The loss of privacy, and the fear of a community that is entirely guided by technology is a red flag. Some governments globally stood up to the challenges and are tightening the measures of data privacy and protection to protect their citizens from such practices. For example, as mentioned earlier, chatbots at hotels store the purchase history of customers, which challenges the data privacy & security issues. It is a challenge to privacy & data security [29].

Finally, the last challenge is the economic return of deploying such technologies. Tech companies have spent billions of dollars to develop these technologies and of course, will not give them to free for service providers. Therefore, is investing in such technologies will give the desired return on investment? Even if the number of employee’s decreases and fewer salaries and benefits are being paid, sometimes such technologies will lead to a loss of revenue. In case a chatbot malfunctions or displays the wrong information, the customer will get annoyed and leave the hotel with no one noticing. On the contrary, if a human makes a mistake the customer will call his manager and the manager will handle the service correction, and the customer will be happy. When there is an emergency and complex issue to be sorted out, customers still rely on the human workforce [37]. From the perspective of tourism enterprises as the supply side, artificial intelligence is in the stage of growth from Weak AI to Strong AI, and its impact on employment is continuously increasing (The United Nations Development Programme, 2018). The service process is adjusted, and the cost and method of management are also affected. As a result, the most obvious financial benefit is labor cost savings [38].

Conceptual Framework

Figure1: Conceptual Framework.

In order to assess the aftermath of deploying AI technologies on customer experience in the UAE and Qatar, and compare the results from both countries, four main pillars are to be discussed, namely, what are the current technological platforms using AI, the impact of those platforms on the travel and tourism industry, and what will those technologies deliver in the future. Analyzing those pillars will allow this research to identify to what extent deploying AI-driven technologies will enhance customer experience in the UAE and Qatar. Skeptics of AI argue that deploying such platforms have limited to none impact on customer experience, considering the huge investment required to integrate such solutions with pre-existing platforms. However, advocates of AI assure both consumers and businesses that the benefits of the technology outweigh its cost of implementation. As this research tends to unearth whether AI can be utilized to enhance customer experience in the travel and tourism industry an exploratory research design is applied. Qualitative research tools are applied as a means of data collection. Interviews using open-ended question with subject matter experts in the UAE and Qatar were conducted. Data extracted from interviews was analyzed using the content analysis method. According to Zikmund et al [39], content analysis method involves analyzing and decoding messages and narrations from different sources, which include expert opinion. Four interviews were conducted with assistant/managers working in the travel and tourism industry in Qatar and the UAE. The hotels included in the sample are five-star hotels that have deployed AI. Due to confidentiality reasons, the interviewees requested to keep their identities anonymous while agreeing to share the names of the hotels they work for without specifying the name of the hotel each employee work in. The sample from the UAE include Atlantis the Palm, Shangri-La Hotel, and Park Hyatt Abu Dhabi Hotel, and in Qatar the Millennium Hotel Doha. This research used simple random sampling as this gives each element of the population an equal probability of being selected within the population [39]. To validate interview questions, Conway (1995) suggested focusing on facial expressions and body language. This was applied during the data collection process. As proposed by Saldana [40], the first level of analysis focused on structural coding where data is categorized into themes. The second level includes comparing similar categories to establish patterns in the results, which is associated with an inductive approach. Several themes were uncovered. Based on the data collected in this research AI facilitates digital adoption in the travel and tourism industry. From a customer service perspective four themes were uncovered namely, the role of AI as a customer service enabler, building brand loyalty, driving customer service efficiency, and improving customer experience. Furthermore, this research points out the importance of data availability in AI-based technologies and how AI facilitates interoperability between current systems.

Status of the Travel and Tourism Industry Globally and In the UAE-Qatar

Interviewees were asked about the current status of the travel and tourism industry globally and in the UAE and Qatar. Although international tourist arrivals globally in Q2 2022 remain around 40% lower than the levels recorded during the same period in 2019 [2], the travel and tourism industry is gradually recovering from the COVID-19 crisis. This aligns with the recovery scenarios proposed by the [2], where the travel and tourism industry will tap 2019 levels by 2024. However, in the Middle East, travel and tourism activity has gained momentum faster than the global levels. According to the UNWTO [2], Qatar and the United Arab Emirates are 10.3% and 21.7% lower than 2019 levels when comparing Q2 2022 to Q2 2019. Although the contribution of travel and tourism in the UAE GDP have dropped significantly in 2021 to reach 6.4%, this represents a 44.1% increase when compared to 2020 levels [41]. This aspect was referred to by Interviewee 2. Also, interviewee 3 stated that the travel and tourism industry witnessed exponential growth after the COVID-19 restrictions were relaxed. Interviewee 4 provided an overview on the travel and tourism industry in Qatar and how the country has also managed to overcome the impact of the pandemic “The travel and tourism industry globally and in Qatar is gaining momentum after a long-waited recovery due to COVID-19. The travel and tourism industry will continue to play a vital role in connecting people and generating economic benefits both globally and in Qatar.” According to the WTTC [41], the contribution of travel and tourism to the Qatari GDP have increased from 10.3% in 2019 to 10.7% in 2020. The reason behind that increase is the push from domestic tourism and regional tourism where Qatar have allowed GCC countries only to enter the country before completely relaxing COVID-19 measures in 2022.

AI Support Customer Service in the Travel and Tourism Industry

AI Facilitating Digital Adoption in the Travel and Tourism Industry

Interviewees were asked about their opinion regarding the digital adoption process in the travel and tourism industry. Several authors [42,27, 43] believe that the travel and tourism industry embrace new technologies to enhance customer experience. The degree of adoption varies depending on several external and internal factors, as highlighted by Akhtar et al. [42]. The latter authors argue that technologies now went beyond self-check-in kiosks, baggage drop, and ATMs. Today’s technological products are "smart" and customer centric. In addition, Gretzel [44] stated that technological improvements in the travel and tourism industry are benefiting all not only the customer but also relevant stakeholders due to the interoperability of the new technology, which was recognized by interviewee 1, mentioning that the adoption of interoperable and flexible digital platforms have contributed to the industry growth and the digitalization of the industry itself. On the same front, interviewees 2, 3, and 4 agree that digital adoption in the travel and tourism industry have supported the industry’s growth and contributed to attracting more tourists. According to Oh, et al.[45], the digital integration withing the travel and tourism industry have benefited all relevant stakeholders, including service providers, customers, and other sectors which are indirectly related to travel and tourism such as healthcare, food and beverage, and retail. Although previous studies [46,47] mentioned that technological adoption in the travel and tourism industry still lags other industries, more recent studies[4,16,17] highlighted that the travel and tourism industry is significantly investing in new technologies to attract more tourists and enhance customer experience.

AI A Customer Service Enabler                                        

Artificial intelligence is an engine of various platforms that are essential for customer service. According to Gartner [36], AI is an essential tool to understand customer preferences and provider the required service. Similarly, on the same front Omale [48] stressed that AI can help service providers how to best deal with the customer through understanding their profiles while using AI data tools. The latter author explained that AI can provide the customer with customized and personalized services. This aspect was also mentioned by interviewee 2 stating that AI can be an enabler for service delivery. Similarly, Luo et al. [26] argue that the application of AI across the hospitality industry can effectively promote consumer interaction, playing an important role in service delivery and satisfaction, which was also highlighted by Interviewee 1. The latter stated that AI-based technologies such as chatbots, virtual reality platforms, and location and translation services are all enablers of customer service delivery. Samala et al. [4] highlighted the importance of AI in serving customers and dealing with their needs effectively and efficiently and effectively, making AI a key enabler to customer service in the travel and tourism industry. This was also stated by interviewees 3 highlighting that AI is transforming “customer preferences into meaningful products” (interviewee 3) that would better serve clients. AI-based technologies are considered enablers of customer service in the travel tourism industry. Interviews from both the UAE and Qatar agree that AI is an enabler of customer service in the travel and tourism industry. Recent literature [4, 10, 26, 17] has presented successful case studies on the importance of AI as an enabler for customer service. This is also the case for the use of AI in the UAE and Qatar.

AI Adoption in the UAE and Qatar

computer systems to perform activities that require human intelligence. Definitions provided by the interviewees were in line with existing literature (Interviewees 1, 2, 3, 4). According to Russel and Norvig [49] “AI can be referred to as the development of computer systems that can perform tasks and activities which require human intelligence” (p.73). The question remains to what extent AI-based technologies are being adopted in the UAE and Qatar and how AI is linked to the travel and tourism industry in both countries. Based on the data collected, AI-based technologies are being utilized in the UAE and Qatar. Interviewee 1 stated that hotels in the UAE are using AI-based technologies in trip planning and food processing applications. The applications allow customers to customize their trip from scratch including booking travel itinerary, reserve a room, and choose the appropriate meals and transportation. According to Al-shami et al. [50], AI-powered platforms provide customers with the flexibility to collect, select, and modify their travel plans within no time. Also, Al-shami et al. [50] revealed that hotels in the UAE are using AI-based applications in food processing applications, which was also referred to by Interviewee 1.

Using AI to Build Brand Loyalty

Interviewee 2 stated the hotel used AI-based reception robots to meet, greet and serve the customer. According to using robots is a notable change in the landscape of service delivery in the travel and tourism industry. Furthermore, investing in such technologies is expected to yield long-term benefits such as recurring visits. This is an important aspect in building brand loyalty. Recurring visits can build brand loyalty [52]. Interviewee 2 also pointed out the importance of investing in such products (interviewee 2: First, we tried one, and then we invested in six machines, and we saw that the customers were thrilled to deal with a speaking robot that knows their language. Such developments foster recurring visits leading to brand loyalty if the customer saw our concern towards pleasing them). Interviewee 3 while discussing the AI-based technologies adopted by their hotel also mentioned how AI-based applications such as chatbots supported their market position and rebranded their image as a technology enabler. Chatbots are one of the most utilized AI-based applications in the travel and tourism industry [45]. Chatbots provide all information related to the destination and the tourism facility by connecting customers to local attractions [50]. Similarly, interviewee 4 stated that in Qatar its mostly “smart” chatbots that were adopted in the travel and tourism industry. Literature assessing the level of adoption of AI in the travel industry is widely available, yet none has focused on the ability of AI to build brand loyalty. As discussed by interviewees 1, 2, and 3, AI contributed to the increase in recurring visits, which consequently creates brand loyalty. According to interviewee 3, if continuous improvements are made and customers are always finding what they expect, this will build brand loyalty. Responding to customer preferences and demand patterns is essential as technology alone will not support operations without customer engagement and acceptance. This aspect needs to be further investigated over more travel and tourism outlets to verify its validity.

AI Systems Are Worth the Data Available

According to the interviewees, data availability is the enabler of AI. In AI systems, data is gathered and analyzed to produce a tailor-made travel package, food order, and accommodation preferences, based on customer preferences [30]. The latter explained that over the years hotels have adopted digital strategies benefiting from the availability of customer data. Interviewee 2 stated that AI-based technologies can be easily connected to global search engines and online distribution channels, the thing that creates a competitive advantage for tourism. Filtering this data helps understand customer requirements and deliver the required product [50] similarly, interviewees 3 and 4 highlighted the importance of the data streams feeding AI-based technologies. Therefore, AI facilitates data forecasting and statistical analysis [50]. Based on the primary data collected, the availability of consumers’ data is one of the main drivers of AI adoption in the UAE and Qatar. AI-based applications feed from different sources that are essential for the applications to be able to predict and create products that are in line with the customer preferences. Adoption levels varied between mobile applications, chatbots, reception robots, and room automation. Several authors (Kumar, et al., 2018;45,4] have discussed the importance of AI-based applications, chatbots, robots, and automation devices in the travel and tourism industry. However, none have highlighted how the availability of data could impact the effectiveness of such technologies. As highlighted by interviewees in this study, data Is the lifeline of AI in the UAE and Qatar. Data availability represents a major challenge for AI especially when considering laws related to data protection and other ethical considerations. This aspect was raised by interviewee 4 when discussing the challenges related to AI adoption in the UAE and Qatar (interviewee 4: As for the legal challenge, the social and ethical responsibility of processing customers’ data raise legal question marks. Now we have to get consent it is not an easy process, and we are liable for this data). For example, Bowyer [47] highlighted that some countries are reluctant to use facial recognition due to privacy and data security issues. On the same front, [29] data privacy and security issues represent a challenge for hotels to store the past purchase history, travel history. Murphy et al. [13] argue that a small malware attack can disrupt AI-based platforms and affect different kinds of services offered by third parties that are available on those platforms. The latter author elaborates that aspects could result in chaos as host companies are considered liable to the data they collect. Another drawback raised by interviewee 4 was sustainability. This then raises another question: what will technology deliver in the future, and will it be able to meet the purchasing pattern of tech-savvy customers? On the other hand, In the UAE challenges were only related to the cost of implementation and gaining customer acceptance (interviewee 1). Therefore, “Resistance to change” was unearthed as another theme in the data findings of this research. Interviewees 1 and 2 highlighted their concern about literally selling the product to the customer and what would be the first reaction whether acceptance or rejection. Existing literature [20,21]acknowledge the fact that customers might not accept the services before travel rather than experiencing them physically at the destination or during their journey. Therefore, AI-based applications first require customers’ acceptance and should be a multi-staged approach, i.e., starting from the destination back to the customer's country of residence and not the opposite. On the other hand, interviewees have identified several benefits for using AI in the travel and tourism industry. The themes that will be discussed are service efficiency, interoperability, and competitiveness.

Ai Drives Customer Service Efficiency

According to Samala [4], AI has been used in the travel and tourism industry to gain competitive advantage in a transitional market. The latter authors add that the technology have gradually reduced the processes that are carried out manually, leading to better service delivery Furthermore, Verganti et al. [30] sited that both customers and employees have benefited from the expedited service delivery facilitated by AI, which was also noted by interviewee 2. On the same front, interviewee 3 stated that the use of AI is a key enabler of service efficiency. Hotels require accurately designed strategies for both internal and customers to ensure costs operation efficiency and maximization of profit. The integration of AI is advantageous to both hoteliers and guests. Furthermore, AI brings stability to the working environment by reducing the stress levels on workers, which enhances service delivery. Reducing stress levels at the workplace would enhance the well-being of the employees and consequently support service delivery [30]. This aspect would require further investigation to assess its existence across the travel and tourism industry in the UAE and other countries.

AI Facilitates Interoperability between Operating Systems in the Travel and Tourism Industry

The travel and tourism industry is highly interconnected when it comes to the systems deployed by stakeholders [31]. A recent study conducted by [31], highlighted the importance of AI in connecting disparate systems to exchange information among public and private organizations. Interoperability is the key requirement in smart hospitality [31]. Business organizations tend to invest in technologies to automate system-to-system collaboration, which is what AI does perfectly. AI-based applications are able to retrieve data from multiple systems without the need for human intervention. Once algorithms are written the system starts working. According to the interviewees included in this study, one of the main drivers for investing in AI-based technologies is interoperability and the ability to rely on the automated exchange of information between interconnected systems within the hospitality industry. Interviewee 2 argues that AI-based systems need to be interoperable, or those systems will not function properly and will increase the operating cost of the hotels in the UAE rather than reducing workload. Buhali and Leung [31] affirm that interoperable AI-based systems do improve workloads, reduce human error, and increase efficiency and effectiveness. The shared network provided by AI-based platforms can allow employees to momentarily obtain guest-related information and respond to their inquiries [26]. Aside from the benefits of interoperability, interviewees 3 and 4 focused in their responses on the economic benefits of AI and how the UAE and Qatar are overtaking famous destinations in Europe due to the unmatchable product offering delivering to the customer.

Ai Improves Customer Experience

Ai Improves Customer Experience

Several authors [32-35] have discussed the importance of AI-based technologies in enhancing customer experience. Providing timely information combined with the flexibility to have a tailor-made journey has improved the quality of service provided to the customer. Gartner [36] pointed out that the use of AI has assisted service providers in understanding customers’ preferences and feedback. Therefore, AI is a vital tool for service providers to improve customer service and thus remain competitive in business sectors that are prone to different transitions in a short period.

AI Help Improve Customer Experience

Primary data collected in this study illustrated the importance of AI-based technologies in enhancing customer experience in the UAE and Qatar. Interviewees came to an agreement that the role of AI is instrumental in creating travel and tourism products that are in line with customers’ preferences. According to Russel and Norvig [49], AI allowed travel and tourism providers to optimize their services and include cross-selling of products to quickly adjust to the change in consumer preferences. Interviewee 1 stated that the technology itself is customer-centric and if it does not serve that purpose then it should be eliminated. Li, et al. [26] argue that the technology should be focused on the customer’s needs and not applied haphazardly else it will fail to deliver the required benefits. Applying AI-based technologies should be customer-focused [25]. These aspects were also highlighted by interviewee 2. Similarly, interviewee 4 argues that technology should provide customers with the flexibility to create and allocate their preferences while processing their needs through a user-friendly platform. The technology should be able to offer a holistic view of the tourism infrastructure in the destination country. On the other hand, Gretzel [44] argues that benefits and risks for users should be taken into consideration. Tourists refrain from adopting AI technologies due to fear of surveillance and of becoming highly dependent on similar technologies. Several authors [44, 24] cited that AI can be a potential source of piracy due to the enormous data banks the technology gathers, and most importantly what can be concluded from this data, like behavioral patterns of consumers, preferences, and purchase history. Interviewee 3 mentioned that some users still have doubts towards the technology. Interviewee 3 explained that the industry needs to go through an extended transitional period where technology is used to complement physical services and not the other way around. The highly transitional nature of the travel and tourism industry [36] requires continuous changes in the framework of operations to meet the changes in consumer demand. Several studies (Tuo, et al., 2021; 30,18] suggest the customers’ tendency toward internet & self-service technologies, including AI. Based on the responses of experts working in the travel and tourism industry in the UAE and Qatar, travel and tourism providers in both countries are making good use of the technology by changing its dynamics to become more customer-focused. In addition, continuous adjustments and evaluations are being made to ensure that the technology is achieving its purpose, i.e., meeting customers’ expectations. Although some tourists are being hesitant towards the technology yet support given by the travel and tourism providers in the UAE and Qatar is boosting their interest to become part of the digital world. Deploying state-of-the-art technologies to serve the customer became part of the service delivery doctrine in the UAE and Qatar. The flexibility offered by AI-based technologies is being efficiently utilized in both the UAE and Qatar to attract tourism activity and at the same time build brand loyalty. The national-led vision of digitalization in both countries has been notably reflected across the travel and tourism industry. Based on the interviewee’s responses, AI is helping organizations in delivering better services and consequently improve customer experience. Therefore, AI in the UAE and Qatar can be seen as a tool to improve customer experience resulting in more revenues and building brand loyalty.

How Will Ai Bring Better Customer Experience

During the past decades, technology delivered unexpected benefits for several industries. Between 2011 and 2014 the number of research done that connect AI to travel and tourism was round 5,216 research (Tuo, et al., 2021). Therefore, building expectations on what technology can deliver in the future is not an easy aspect. However, in the travel and tourism industry, there are a lot of disciplines that can embrace AI for improved services [4]. Interviewees believe that AI will play an instrumental role in enhancing customer experience in the future through tapping areas other than guest relations, travel planning, and general service. According to Wei (2019), AI can be applied within the hotel room context. Customers can select the option to transform their entire room into their favorite destination spot. This AI-driven technology will allow customers to transform the entire room into a virtual 3D world that reflects their desired destination. Furthermore, Yang et al. [43] expect that robots will be able to serve customers in their room, carry their luggage, serving them food & snacks, and provide housekeeping services. Other applications for AI in the travel and tourism industry Is the Visual Positioning System (VPS). According to Samala et al. [4], VPS might take over the Global Positioning System (GPS). VPS is an advanced technology that provides a live view of the visual landmarks for travelers showing shops, companies, hotels, malls, cinema theatres, restaurants, canteens, and recreational zones. There are several other areas in the travel and tourism industry that can embrace AI. It is essential for the travel and tourism industry to present their ideas regarding consumer preferences.

Conclusions

AI is one of the leading technologies applied in the travel and tourism industry that is facilitating a smooth and flexible relationship between the customer and the service provider. Hotels, tourism outlets, airlines, and airports are investing in AI-based technologies to meet consumer preferences. Considering the transitional nature of the travel and tourism industry, technology providers need to sustain technological advancements to meet the changes in consumer demand patterns. The first theme uncovered in this research is the ability of AI to facilitate digital adoption in the travel and tourism industry. The adoption of AI has benefited all stakeholders, including service providers, customers, and other sectors, which are indirectly related to travel and tourism, such as healthcare, food and beverage, and retail. Recent studies [16,17 4] stated that the travel and tourism industry is significantly investing in new technologies to attract more tourists and enhance customer experience. Results showed that hotels included in this sample in both countries have elevated their investment in AI-based technologies. The adoption level ranged between reservation systems, chatbots, robots, applications, and web-based platforms. AI was also found to be a customer service enabler in the travel and tourism industry in the UAE and Qatar. Similarly, other studies [4,10,26, 17] have presented evidence of the importance of AI as an enabler for customer service in the UAE only. While literature merely exists on Qatar, given the similar economic landscape in both countries AI can be considered as an important driver of customer service in the travel and tourism industry in Qatar as well. Further research on Qatar needs to be done to assess this aspect. One of the most important novel findings of this research was the role of AI in building brand loyalty. Several authors [50,4,51]) have discussed the adoption of AI and its benefits, yet none have focused on the ability of AI in building brand loyalty. According to the primary data collected, responding to customers’ needs by using AI has generated recurring visits in the UAE. Kaushik, et al. [52] argue that recurring visits can build brand loyalty. The interviewee representing the travel and tourism sector in Qatar did not mention any details about the importance of AI in generating recurrent visits. From an organizational perspective, this research affirms that AI drives customer service efficiency. Based on the responses of the interviewees, AI provides a more stable working environment where technology support and complements human services. This result in fewer working hours and lower stress levels, which will enhance service delivery. This is an important finding linking the adoption of technology with enhancing employee well-being. Reducing stress levels at the workplace would enhance the well-being of the employees and consequently support service delivery [53] AI facilitates interoperability between operating systems in the travel and tourism industry. Hotels in the UAE and Qatar are benefiting from available AI technologies to improve customer experience. The interoperability of the available technologies with existing systems has supported this shift from “conventional” customer service systems to a more customer-centric environment that has the ability to “create” what the customer needs. Finally, the future of AI is highly related to the availability of technology. Some interviewees agree that AI will deliver more in the future while others were hesitant and stated that travel and tourism providers need to adopt a wait-and-see approach. Existing literature (Wei, 2019; 43, 4] expects more use of AI in areas related to shops, companies, hotels, malls, cinema theatres, restaurants, canteens, and recreational zones. Different areas can accommodate AI such as housekeeping, logistics, and dining services.

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