The use of artificial intelligence (AI) in the travel industry has increased in recent years, but there is still room for improvement to fully capitalize on its potential. Vivek Bhogaraju, an advisory partner of data and AI at Skift, offers insights on how travel companies can develop effective AI strategies. Bhogaraju emphasizes the need for flexibility when utilizing AI, as new regulations are likely to be introduced in the future. He also stresses the importance of hiring chief data officers with technical expertise and a background in the travel industry. Successful data and AI implementation requires urgency and efficiency, but also requires time and persistence for projects to succeed.
In other news, luxury conglomerate LVMH has partnered with hotel company Accor to accelerate the revival of the Orient Express brand. Senior Hospitality Editor Sean O’Neill reports that LVMH has made a strategic investment in the Orient Express brand, which will encompass not only trains and hotels but also ships. Rumors of a Louis Vuitton-branded hotel in Paris were downplayed by LVMH, as the focus remains on the Orient Express brand revival.
Thailand has made a recent decision to forego a proposed $8 fee on international tourists arriving by plane. Asia Editor Peden Doma Bhutia writes that Prime Minister Srettha Thavisin’s administration has abandoned the previous government’s plan to impose the tourism fee, which was approved in February 2023. The revenue from the fee was intended to fund the management of insurance for international visitors, but faced opposition from private stakeholders. Thavisin believes that eliminating the tourist fee will result in greater economic benefits for Thailand.
The podcast also touches on the importance of hiring the right chief data officers in the travel industry, especially as companies ramp up their use of AI and data analytics. Bhogaraju highlights the need for these professionals to possess technical knowledge and a deep understanding of the travel sector. Implementing successful data and AI projects requires a balance of urgency, efficiency, time, and persistence, as companies navigate the complexities of integrating new technologies into their operations.
LVMH’s partnership with Accor to revitalize the Orient Express brand reflects the luxury conglomerate’s continued expansion into the travel and hospitality sector. The strategic investment in the Orient Express brand signals LVMH’s commitment to preserving and modernizing this iconic travel experience. While there were rumors of a potential Louis Vuitton-branded hotel in Paris, LVMH has clarified that their focus is on developing the Orient Express brand across various travel experiences, including trains, hotels, and ships.
Thailand’s decision to scrap the proposed tourist fee highlights the complexities of balancing revenue generation with economic benefits and stakeholder interests in the travel industry. The reversal of the fee policy underscores the importance of carefully considering the implications of such measures on tourism and the broader economy. By prioritizing economic benefits over immediate revenue from tourist fees, Thailand aims to attract more international visitors and sustain growth in its tourism sector.
