MONEY & LIFE

How AI Is Making Travel Better

By: Keith Wagstaff · May 21, 2024 · Reading Time: 3 minutes

AI Takes Off

When you’re in a middle seat you didn’t pick, your baggage is going to the wrong city, or you’re being charged $15 for a cheese plate, air travel can feel painful. But it’s improving in some ways, thanks to AI.

Last year, according to the New York Times , around 25% of Alaska Airlines (ALK) flights were reduced by a couple of minutes as a result of AI finding the most efficient routes, while AI-powered Smart Gating software has reduced taxiing time.

And United Airlines’ (UAL) ConnectionSaver software, also powered by AI, has helped some passengers make their connecting flights. The airline is also hoping generative AI can produce more helpful alerts to customers, who can get frustrated by text messages that say something like “Your flight is delayed” with no context or useful details.

AI Travel Agents

Want suggestions for things to do on your next vacation? Need help booking flights and hotel rooms? Some companies are betting AI can help with this as well.

Expedia (EXPE) and Tripadvisor (TRIP) are now using OpenAI’s technology to help users plan their trips, and Roadtrip uses AI to help drivers plot their perfect car trip.

Right now, AI itineraries aren’t perfect, sometimes offering generic advice or “hallucinating,” tech industry lingo for making stuff up. But as the technology improves, it could take some of the stress out of travel planning.

Tech Can Help You Save

Digital tools can be essential to creating a travel fund, which can be a great way to save for that big trip to Italy, Japan, or anywhere else you might want to go.

First, determine a savings goal based on the trip you want to take. Next, automate contributions to a savings fund with cash left over after paying rent, groceries, debt, and other financial obligations.

You’ll also have to decide where to park your money. Options range from a regular savings account, high yield savings account, short-term savings vehicles like CDs, to cash management accounts. Just keep in mind that some may come with fees or withdrawal restrictions.

Technology can help you save for and plan your next trip. Just remember to put your phone down every once in a while when you actually reach your destination.

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