Travel & Hospitality

Case Study

Scaling duty free sales by modernizing online shopping and pre-ordering for a global duty free operator.

Sundew joined a multi-vendor delivery team and contributed to the design and engineering of an enterprise AI platform built on the Open WebUI framework, hosted on Microsoft Azure, and powered by OpenAI's large language models.

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.

Blog

Digital Transformation in Travel: Navigating the Future

Modern travelers seek personalized, efficient, and innovative experiences, needs that digital transformation in travel fulfills. This shift is not just improving how businesses operate but also helping them stay competitive in a fast-changing market.Technological advancements in the travel industry have evolved rapidly over the past few years, especially after the COVID-19 crisis, propelling industries to thrive digitally.Digital transformation integrates technology to improve operations and customer engagement. For example, mobile apps streamline check-ins and boarding, while AI chatbots handle traveler queries, improving efficiency and enhancing the overall customer experience.Travel brands willing to establish or enhance their niche in the sector must understand how digital transformation technologies work to tap into their immense potential further.What is digital transformation in travel, and why is it important?Digital transformation in the travel industry integrates technology into every area of business. This helps simplify processes and reshape all aspects of tourism.The primary goal of incorporating digitization in the travel and tourism sector is to refine the customer experience while keeping up with the constant evolution. It also includes reshaping the operational frameworks of travel businesses to enhance efficiency and streamline processes.Digital transformation in travel industry is important to stay competitive in the fast-evolving technological landscape. Here’s why your travel business should prioritize this transformation:Keeping Up With Customer ExpectationsIn the travel sector, customer expectations have shifted towards seamless, tech-driven experiences. Travelers now demand smooth interactions across multiple channels. For instance, travel agencies with web platforms should also offer mobile apps to simplify bookings and enhance customer loyalty.Improved Efficiency Digital transformation helps travel businesses streamline operations by automating processes and reducing manual errors. For example, online systems enable staff to access booking data and collaborate in real-time, ensuring smoother trip management and quicker customer responses.Cost SavingsAdopting digital tools can reduce costs in the travel industry by automating repetitive tasks and optimizing resources. For instance, using cloud storage eliminates the need for physical servers, saving on maintenance while improving data accessibility and scalability.Enhanced SecurityTravel businesses handle vast amounts of sensitive customer data, from personal information to payment details. Digital transformation enables advanced security measures like encryption and multifactor authentication to protect data and reduce the risk of breaches.Influence of Digital Technologies on the Travel and Tourism IndustryAccording to the latest reports by Statista, more than 50% of travelers worldwide resort to online travel apps when planning every detail of a trip in 2023. From a simple online hotel review search to a complete virtual destination tour, the reliance on travel apps can be observed now more than ever.Travel agencies also report a significant rise in the demand for personalized tours and exclusivity. Global customization and personalization in the tourism market are expected to grow at a CAGR of 17.8% over the next decade, with data analytics, AI, and IoT going beyond precision in understanding and predicting customer behavior.The 'Revenue By Segment' in the 'Travel' segment of the app market is projected to grow by 0.8 billion U.S. dollars (+64%) from 2023 to 2027, reaching a new peak of 2 billion U.S. dollars in 2027. This marks the tenth consecutive year of growth for this indicator.Travel brands willing to establish or enhance their niche in the sector must understand how these technologies in digital transformation work to tap into their immense potential further.How Does Digital Transformation in Travel Industry Drive Growth?The travel industry is fast-paced and highly competitive. Digital transformation in travel industry allows businesses to adapt quickly to changing market demands, such as sudden shifts in travel trends or new customer preferences, giving them a critical edge in the market.Data AnalyticsUsing data analytics and visualization to identify patterns in a customer’s journey helps companies better understand their customers' needs. Travel businesses can use data analytics as part of their digital transformation strategy to offer personalized recommendations and offers based on a user’s behavior history. This is done by automatically tracking and storing real-time data, such as purchase history and customer interactions, to operate web analytics.Businesses can also use data mining to understand and implement the most effective pricing strategies and deals to enhance sales. For example, airlines can predict demand patterns and optimize flight schedules and pricing strategies using dynamic pricing for maximum efficiency.Artificial Intelligence (AI)From real-time chatbots to personalized recommendations, Artificial Intelligence reshaping the travel experience. It enhances hotel and airline customer service while lowering operational expenses.Businesses can ease a customer’s research process with near-accurate predictions of flight availability, hotel and airline prices, and suggestions on the go for creating compelling itineraries. The latest usage of AI also includes helping airlines tackle weather challenges with satellites and sensors.VR and ARVirtual reality (VR) takes the entire process of researching one’s destination before planning a trip up one notch with virtual tours. Travel and hospitality solutions using VR can let travelers see around their hotel rooms and campsites before booking. They can also walk through locations virtually before finalizing their itineraries. Although several companies have yet to adopt digital technology, the size of the VR market is expected to grow to more than $12 billion by 2024.Another advantage of augmented reality (AR), which can help elevate the whole touring experience, is audio-visual elements like music, narration, and additional content. Using virtual and augmented reality, companies can also tap into the potential of helping people with mobility issues enjoy traveling experiences worldwide from the comfort of their homes.Internet of Things (IoT)The Internet of Things makes enhanced personalization possible via sensors and smart gadgets. Hotels can use IoT as part of their digital transformation strategy to let travelers operate several appliances from a central operating device, aiding in hassle-free check-in and baggage detection.Additionally, travel companies can notify customers with location-specific information, such as nearby attractions and eateries, making navigation easier. Smart energy-saving features of IoT devices can also help businesses curtail unnecessary costs.Cloud ComputingBusinesses looking to scale their operations up or down can do so quickly with automated processes based on fluctuations in storage demands. Cloud enables seamless data sharing across multiple channels, letting airlines and hotels arrange inventory according to updated requirements, improving operational efficiency and reducing costs.Mobile Apps & Social Media ToolsDigital transformation in travel empowers businesses to enhance traveler experiences through mobility solutions, offering real-time, location-specific updates via mobile apps. These technologies ensure travelers stay informed and engaged throughout their journey.BlockchainBlockchain is another important technology in the digital transformation of travel and hospitality, and it enhances security. Businesses can unlock their potential to provide better transaction privacy and data protection, ensuring better security.What challenges can digital transformation initiatives overcome for the tourism industry?Recent developments in the tourism sector reinforce the importance of digital transformation. Travel brands can overcome the following significant challenges by integrating digital technologies into their businesses.Improving Brand Reach across Multiple ChannelsDigital channels provide vast opportunities to expand your brand's visibility. You can connect with a broader audience and establish a strong online presence by strategically leveraging various platforms.Streamlined and Secure TransactionsTransparent, seamless, and secure transactions build trust and encourage repeat business. Implementing user-friendly payment systems and clear communication throughout the purchase process enhances customer confidence and satisfaction.Authentic Travel ExperiencesAuthentic travel and guest experience result in trips that leave lasting memories for customers. By showcasing local culture, off-the-beaten-path destinations, and unique activities, you can differentiate your offerings and appeal to discerning travelers.Personalized and Flexible ItinerariesPersonalized itineraries cater to individual preferences and needs, increasing customer satisfaction. Offering flexible options allows travelers to tailor their trips, creating a sense of control and customization that many modern tourists value.Quality services while Maintaining a BudgetTraveling on a budget doesn’t mean sacrificing the quality of services. By carefully curating options and leveraging partnerships, you can provide excellent value to customers without sacrificing your profit margins.Online travel market sizeThe global online travel industry's market size surged in 2023 compared to the previous year. After declining to 225 billion U.S. dollars due to the COVID-19 pandemic, the market rebounded in 2022 and continued to climb in 2023, approaching 600 billion U.S. dollars. This trend is anticipated to persist, with the market expected to surpass 800 billion U.S. dollars by 2028.Are you ready to transform the future of travel?Implementing the latest digital technologies is critical for businesses to remain competitive. The digital transformation success of your travel agency is defined by the positive impact you make on customers' journeys.Incorporating AI/ML, data analysis, and automation into existing business processes can optimize efficiency while sustaining a company's digital presence and helping it keep up with rapidly evolving market trends. The rise of digital transformation in travel and tourism underscores the need for continuous technological innovation to thrive in the modern travel industry.