Fixing the Plumbing: How AI Can Help Transform Travel Tech

AIʼs true disruptive power lies in its ability to bypass legacy systems

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The travel industry is at a pivotal moment, with Artificial Intelligence promising significant innovation though its full potential is yet to be fully realised. In order for AI to bring transformative potential, enabling hyper-personalization, efficient automation and intelligent pricing, companies need to solve deep-rooted inefficiencies.

Our mission is clear: to fundamentally "fix the plumbing" of the travel ecosystem, targeting the outdated infrastructure, fragmented data systems, and cumbersome legacy technologies that hinder meaningful progress. 

AIʼs true disruptive power lies in its ability to bypass archaic GDS architectures, democratize travel content, and deliver hyperpersonalised experiences at scale—all while addressing systemic inefficiencies that have plagued the industry for decades.

This document identifies where I believe AI truly adds value, exposes gaps and sets a strategic course for companies determined to reshape the travel industry at its foundation.

What's Broken in Travel Technology?

The travel industry’s reliance on GDS platforms originally designed for airline reservations in the pre-internet era, has created a fragile technological ecosystem. These platforms, while once revolutionary, now suffer from:

 Architectural rigidity: Built on monolithic codebases, GDS platforms struggle to integrate modern APIs or AI capabilities, forcing developers to layer new technologies atop unstable foundations

 Content fragmentation: Airlines and hotels increasingly bypass GDS channels via direct NDC (New Distribution Capability) connections, creating siloed inventory that frustrates travel buyers

 Cost inefficiencies: GDS booking fees (averaging $8 per segment) and opaque pricing models drain travelers budget

  Poor UX: complex GDS systems require travel agents with decades of experience which are scarce and costly

Cutting Through the Hype: AI's Real Impact vs. Overpromises

AI is undeniably powerful in addressing specific industry challenges, but not all current applications are equally effective:

Effective Use Cases:

  • Personalization: AI significantly improves travel recommendations by analyzing vast behavioral data, genuinely enhancing traveler satisfaction.

  • Operational Automation: Intelligent chatbots and process automation effectively handle routine customer service inquiries, reducing costs and response times.

  • Dynamic Pricing: Real-time price optimizations match pricing to demand accurately and efficiently.

Areas Where AI Falls Short:

  • Complex Customer Interactions: AI often struggles with nuanced requests or unforeseen disruptions, resulting in poor customer experiences if human support isn't readily accessible.

  • Trust & Transparency: Travelers remain wary of AI-driven personalized pricing strategies that lack transparency, feeling manipulated rather than served.

  • Integration with Legacy Systems: Current AI deployments rarely address deeper structural issues such as outdated Global Distribution Systems (GDS), leaving significant inefficiencies untouched.

Strategic Imperatives

For companies committed to genuinely transforming travel technology:

  • Implement modern infrastructure: Genuine progress depends on replacing legacy infrastructure, embracing modern, unbiased, multi modal core systems.

  • Unify Data Ecosystems: Real personalization and efficiency require breaking down data silos to create integrated traveler profiles and seamless transaction flows.

  • Commit to Ethical AI: Proactively manage algorithmic bias and implement transparent pricing and personalization policies.

  • Maintain Human Oversight: Implement human-in-the-loop systems to handle complex cases, ensuring travelers never feel stranded by automation failures. AI should augment human capabilities, not replace them. Effective AI integration maintains a human touch in high-stakes or emotionally significant customer interactions.

Media contact

Elena Galli

Head of Marketing

media@junctionconnect.com

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