Travel & Hospitality

Case Study

Customer experience through a seamless, integrated travel app.

Case Study

Scaling duty-free sales across airports and ports by modernizing online shopping, inventory, and pre-ordering for a global operator.

Duty-free retail runs on impulse and convenience, but fragmentation across 20,000+ SKUs and four regions was holding growth back. Sundew unified sales, pricing, and inventory into one secure platform, driving an 11% revenue lift.

Blog

How Companies Use AI-enabled Digital Transformation in Travel

Imagine being stuck in heavy traffic with your flight boarding in an hour. In the past, you’d just panic and pray. Today, your AI tracks your GPS location and instantly purchases a priority security pass for you, saving you 20 minutes at the airport. If the traffic is really bad, the AI moves you to the next flight before you even enter the terminal. This level of digital transformation in travel to improve customer experience is a total game-changer.        This shift is already the new standard: according to Statista, roughly 7 in 10 travelers across North America now rely on AI for real-time personalization. By late 2026, AI-enabled digital transformation in travel will become even more seamless, neutralizing chaos before it causes passenger stress.How Companies Use AI-Enabled Digital Transformation In TravelRight now in 2026, digital transformation in travel stands as far more than "just for show." Industry leaders like Expedia, Air France, Marriott, Booking.com, and Delta Air Lines have moved past the "what-if" stage. They currently use AI-enabled digital transformation in their core operations to maximize customer experience.Expedia Integrates A ChatGPT-Powered Trip PlannerExpedia uses this conversational AI to help travelers find the perfect vacation through simple, natural dialogue. By letting AI handle common inquiries and planning tasks, they have successfully reduced customer support calls.Marriott Uses "M-Live" To Track Traveler SentimentMarriott utilizes this real-time monitoring system to track traveler sentiment and social media trends as they happen. This data allows them to create highly personalized experiences that have increased direct-to-consumer bookings.Booking.com Uses A Natural Language AI AssistantBooking.com offers an AI assistant that chats with users to build fully customized travel itineraries. This interactive experience keeps travelers engaged on the platform longer, significantly enhancing user retention.Air France Leverages AI-Driven Baggage TrackingAir France uses high-precision AI systems to monitor and sort luggage throughout the entire journey. This smart technology has improved operational reliability and led to a notable decline in lost luggage reports.Delta Air Lines Utilizes Predictive Maintenance and ModelingDelta Air Lines uses advanced AI to identify potential technical issues or weather disruptions before they cause delays. This proactive approach ensures smoother operations and has minimized flight cancellations and downtime.These success stories from industry leaders are not just random wins; they are part of a much larger shift in how travel works today. By examining these examples, we can see how the industry is moving toward core AI strategies that are shaping the future of global travel.  6 AI-Powered Strategies Shaping The Future Of Travel1. Hyper-PersonalizationIn the past, travel companies would just put you into groups like "Business Traveler" and book easily available premium rooms. Today, they use "Agentic AI" to anticipate your tiring day and secure a premium room at a quiet corner far from the elevator. This deep level of personalization isn't just a buzzword but a major revenue driver (Statista) that turns a cold booking into a personal connection.  How does it impact: True loyalty grows when you're treated as a person, not a random booking number. When an app understands you this well, it solves problems before you even notice them.2. Predictive InterventionsToday’s travel apps have evolved into predictive intelligence systems. By syncing real-time weather and airport data, these AI-enabled apps spot delays early and act instantly - whether that’s prompting you to leave 15-minutes earlier or snagging a priority pass to bypass security crowds. How does it impact: By acting as a predictive early warning signal, the AI solves travel issues before they even start, to help you move through every checkpoint smoothly and on time. 3. Biometric "Zero-Friction" JourneysYour face and voice have become your passport and boarding pass. AI-powered sensors recognize you instantly, allowing you to walk from the airport curb to your seat on the plane without reaching for a phone or ID. This "invisible" tech handles check-ins in the background, making the journey hassle-free. How does it impact: By removing physical hurdles and long queues, AI-powered travel apps significantly improve passenger satisfaction, allowing you to relax and actually enjoy the premium services at the airport.4. Agent-To-Agent BookingRecent GitHub stats show a sharp rise in “Agentic Workflows,” proving that agent-to-agent working models aren’t just a theory; it's what hundreds of developers are actively coding into reality this year. This evolution is a core part of digital transformation in travel, where your personal AI "agent" now talks directly to an airline's AI to negotiate the best deal on your behalf. How does it impact: It saves you hours of research and guarantees you get the best price every time. Automating the booking process frees you to explore your hotel’s amenities and perks well before you even arrive. 5. Immersion-First Planning (AR/VR)Nowadays, the "search" bar is often replaced by "try-before-you-buy" experiences. Using Augmented Reality (AR), you can walk through a 3D version of a hotel room or a hiking trail before spending a cent. AI analyzes how you respond to these virtual tours to refine its suggestions until the final booking is guaranteed to succeed.How does it impact: By providing a virtual tour, immersion-first tech removes the fear of the unknown and gives travelers the confidence to choose destinations that match their exact taste.  6. Real-Time Language & Cultural "Bridge.Language barriers are pretty much gone nowadays, thanks to AI, marking a pivotal milestone in digital transformation in travel. AI now provides real-time translation through your earbuds, acting as a cultural guide, whispering tips about local etiquette or tipping customs in your ear as you enter a restaurant. How does it impact: AI transforms you from a generic tourist into a welcomed guest. By bridging cultural gaps and helping you connect respectfully with locals, the system ensures you feel at home the moment you arrive.While these strategies set the vision for the future, the real "magic" comes from the app's specific features. Whether you are building for a B2C traveler or a B2B partner, different AI features adapt to solve different problems. B2B vs. B2C Travel Tech: Choosing The Right FeaturesBuilding the right features is essential for any app to function, but their purpose varies depending on who uses them. A B2C app focuses on making travel joyful, while B2B tools are built for speed and business precision.How Do B2B and B2C Companies Use AI In Travel?While the core technology is similar, the AI adapts its approach based on its user. With a traveler on vacation (B2C), AI emphasizes personal touches. With a logistics manager (B2B), AI focuses on efficiency, data analysis, and operational clarity. We see this play out in two different ways:For the Traveler (B2C): It’s the "Heart." Instead of a cold search bar, you get a thoughtful assistant that actually "understands" you. It handles the stressful planning (Statista) and suggests things you’ll love - like a hidden café - because it remembers you prefer a quiet espresso over a loud tourist trap.For the Business (B2B): It’s the "Brain." This side is all about operational speed and precision. It skips the small talk to handle the heavy lifting, such as building an AI-enabled system at an airport to turn fragmented updates from airlines, security, and ground into a unified command center. (BCG)If you want to build a travel app that actually succeeds in the future, you need a clear plan. Here is a simple guide on the best ways to use AI so your users stay happy and loyal. Best Practices For Building AI In A Travel AppBuilding an AI-powered travel app in 2026 is all about making the tech so smooth that it does all the hard work in the background while the traveler just enjoys the trip.Here’s the secret sauce for getting it right:Personalize in real-time: Use AI that adapts your itinerary on the fly based on your current mood, energy levels, and local weather.Keep it real: Program your AI to suggest cool, local, and sustainable spots - not just the big tourist places paying the highest commission. Don't fear the dead zones: Run offline-first AI models on the phone so translation and maps work perfectly even with zero signal or Internet. Play well with others: Build your AI so it can easily "hand off" tasks to other apps, whether it's for digital payments or local health alerts. Automate the boring stuff: Deploy AI that handles repetitive tasks like filling out visa forms or tracking loyalty points without you lifting a finger.Stick to these rules, and you aren't just building another AI model - you’re building a travel companion that nobody wants to leave home without.The Bottom LineThe true winners won't be the ones with the flashiest travel apps, but the ones who use AI to make the "logistics" of travel vanish. We’re talking about flights rebooked before you even feel the panic, and experiences that feel personal before you’ve even arrived.The soul of digital transformation in travel is about taking the "work" out of the trip so you can enjoy your journey. The best technology is the kind you don’t even notice - it simply makes the world feel smaller, friendlier, and much easier to explore.