Travel Industry Prioritises AI for Measurable Financial Returns

Shift Towards Tangible AI Value

The global travel industry is moving past initial enthusiasm for artificial intelligence and now focuses on technologies that deliver concrete business value. This was the central message from Amir Amidi, Managing Partner for Travel and Hospitality Program and GOAL Program at Plug and Play, during his presentation at the 2026 TravelDaily Conference.

Amidi highlighted that the critical question for companies is no longer the novelty of AI, but its proven ability to enhance revenue, reduce costs, improve operational efficiency, and provide more personalised services.

Plug and Play, founded in 2006 and headquartered in Silicon Valley, operates approximately 70 offices worldwide, including five in China, investing in startups and connecting large enterprises with emerging technologies.

Quantifiable Benefits for Operators

Amidi’s address at the conference underscored the significant potential for AI to create value in sectors heavily reliant on data and human labour. Citing industry research, he noted that around 80% of travel suppliers have already embarked on some form of AI initiative.

Furthermore, research by BCG indicates that airlines could see their operating margins improve by approximately five to six percentage points through the strategic adoption of suitable AI technologies.

This demonstrates AI’s capacity to move beyond a mere industry buzzword and deliver substantial economic advantages, particularly as the barriers to accessing advanced technologies like large language models have diminished.

AI Applications Across the Travel Chain

The applications for AI span the entire travel value chain, offering solutions for numerous data-driven and repetitive tasks. These include optimising airline revenue management, refining airport operations, implementing dynamic hotel pricing, enhancing customer service interactions, and improving marketing and loyalty programmes.

Amidi suggested that the key lies in identifying which AI capabilities, already validated in other industries, can be effectively replicated within the travel sector.

Tasks involving demand forecasting, extensive data processing, and routine executions are particularly well-suited for AI integration, promising a transformative impact on how large enterprises within travel operate.

Evolution of AI Adoption Phases

Amidi described the evolution of AI adoption in the industry through three distinct phases. Initially, companies primarily asked whether they possessed AI capabilities. The second phase shifted focus to integrating AI into existing business workflows.

The industry is now entering its third and most important phase, where the central question is whether AI can make a measurable difference to the financial bottom line. This progression marks a pivotal moment for the travel industry, which has historically depended on labour, physical assets, and data-intensive operations. This current emphasis on quantifiable returns signifies the true beginning of AI’s transformation of travel economics.

Asian Market Focus on ROI

For Asian airlines, hotel groups, and travel technology providers, this intensified focus on AI’s return on investment presents a clear strategic direction. With Plug and Play maintaining five offices in China, the regional ecosystem for travel tech innovation, including AI, is robust.

Asian operators are likely to increase investments in AI solutions that directly improve their financial performance, such as optimising flight routes for specific Asian markets, personalising booking experiences for diverse regional travellers, or streamlining hotel operations to manage labour costs more effectively.

This shift prioritises proven financial gains over experimental pilot programmes, driving more targeted AI adoption across Asia.