How generative AI is reshaping the travel and tourism industry
"AI won't replace people. But if you can't use AI well, you'll get replaced by someone who can."
On June 9, the Korea Tourism Organization hosted its 2023 Tourism Industry Digital Innovation Open Seminar, where speakers unpacked what ChatGPT is and how it's set to transform travel and tourism. Almost every session echoed the same message.
By now, you've probably heard about how generative AI like ChatGPT is changing the way we work. But the impact goes beyond productivity boosts — it's already reshaping travel and tourism. And that transformation is happening now.
As ChatGPT's influence grows, what role can generative AI play in travel and tourism? And what does the future look like?
1. What ChatGPT Is and What It Can Do
ChatGPT is a generative AI built on GPT, a foundation model trained on massive amounts of language data. As a Large Language Model (LLM), it's designed to predict the next word in a sentence based on context — like finishing "a stitch in time" with "saves nine."
So what makes today's foundation models different from earlier AI?
Older AI systems required building and training separate models for each domain — healthcare, law, etc. Today's approach is simpler: train one giant foundation model on a broad dataset, then fine-tune it for specific tasks. Feed it a little tourism-specific data, and suddenly you've got an expert "tourism coordinator" AI.
Experts point to three big changes foundation models bring:
1) Information Search
Instead of manually hunting for information, AI retrieves and presents it for you.
✔️ Convergent Search
Start broad, then narrow down step by step.
For example: "Recommend 20 self-help books → Only global bestsellers → Which ones talk about time management?"
On Google, you'd have to search each query separately and piece it together yourself.
✔️ Personalized Search
Even AI-generated answers won't be perfect for everyone — especially for subjective topics like restaurant recommendations.
But by rating responses (thumbs up/down) and continuing the conversation, the AI learns your preferences and delivers increasingly personalized results.
2) Productivity Gains
After search, this is the most tangible benefit. AI dramatically cuts time spent on repetitive tasks like writing emails or documents.
It also helps with creative work. Take Hyundai Department Store's AI copywriter "Lewis," powered by Naver's HyperCLOVA (Korea's equivalent of ChatGPT). It reduced a two-week copywriting process to three hours.
3) Content Generation
Generative AI isn't just text. It creates images, videos, audio — faster and more diverse than ever.
Describe an image in text, and tools like Midjourney or DALL·E generate it in seconds.
Microsoft's 365 Copilot can turn a document into a full PowerPoint presentation in moments.
2. How Travel & Tourism Companies Are Using ChatGPT
ChatGPT hit 1 million users in 5 days and 100 million monthly users in 2 months. By comparison, Netflix took 3.5 years to reach 1 million users, Facebook 10 months, Instagram 2.5 months. ChatGPT's growth is unprecedented — because it's as easy as chatting with a person.
Everyone agrees generative AI is taking over fast. But according to a Fortune survey of Fortune 500 CEOs, 55% said they "don't know how to use it."
In other words: everyone knows AI matters, but companies struggle to figure out how to adopt it. That includes travel and tourism.
When the path forward is unclear, look at early movers. How are travel and tourism companies using generative AI like ChatGPT?
In February, MyRealTrip launched an "AI Planner" powered by ChatGPT. Type "Suggest a 4-day Osaka itinerary," and it generates recommendations conversationally. It also surfaces popular products and hidden gems, with direct links to book on MyRealTrip's platform.
In March, ChatGPT launched plugins — extensions that let ChatGPT interact with other websites. Launch partners included Expedia and Kayak (for booking hotels and flights) and Instacart (grocery delivery).
Plugins work like electric plugs: snap them in to add functionality. Install a plugin, and ChatGPT can pull data or features from external sites.
Seeing is believing. I tested the Expedia plugin.
I typed "Recommend an Australia itinerary." ChatGPT connected to Expedia, showed real flight prices, hotels, and booking links — all in one conversation.
Fast Company called the plugin launch "witnessing the birth of OpenAI's App Store." Just as Apple's App Store let anyone build and sell apps, ChatGPT plugins could ignite explosive growth in the AI ecosystem.
3. How ChatGPT Will Transform Travel & Tourism
So what changes will ChatGPT bring to travel and tourism in the near future? Let's add a dash of speculation to what's already happening.
1) Destination Recommendations & Personalized Itineraries
As we've seen, ChatGPT already excels at recommending destinations and planning detailed itineraries based on budget and timeline.
But what if it connected to your social media? It could recommend trips tailored to your preferences without you asking. And if you post about your trip, it automatically learns from your feedback.
2) From Planning to Booking
With plugins, you can plan a trip and book flights, hotels, and activities — all in one flow. And plugins will keep expanding.
As personalization improves, two people can visit the same destination but have completely different experiences. Think of it as "your personal travel concierge."
3) Real-Time Trip Management
Recently, travelers got stranded in Guam because of a typhoon. The same happens in Jeju due to weather.
What if ChatGPT monitored real-time conditions via API integrations? It could alert you to disruptions, suggest alternative routes, and help you adapt on the fly. In other words, it manages your entire trip.
4) Live Translation & Interpretation
Ever watched a show or museum exhibit abroad and thought, "I get the gist, but I'm too focused on the language to enjoy it"?
Stanford students are researching AR smart glasses that use ChatGPT to recognize speech and display live subtitles. Foreign visitors could fully understand Korean-language performances — soon.
"Travel is a game of probability. Weather, traffic, conditions — they all create best- and worst-case scenarios. ChatGPT (or generative AI) can't guarantee 100%, but it can deliver 90%+ great experiences tailored to your preferences and situation. It becomes a travel manager."
— Professor Lee Si-han, author of GPT Generation
4. AI Isn't the Future — It's the Present
I asked ChatGPT how it will transform travel and tourism. Its answer aligns closely with what we've discussed.
"When I wrote GPT Generation, I predicted 'this will happen in the next year.' But things moved so fast, predictions became reality. What I shared today as a forecast could happen next month."
— Professor Lee Si-han, author of GPT Generation
AI isn't some distant future. It's the near future — and it's already reshaping the world around us.
Consumers are rapidly adopting generative AI. Travelers used to rely on search engines and social media to plan trips. Soon, AI-powered search and planning will be the default.
In this fast-evolving AI era, the question isn't whether to adopt AI. It's how to capture travelers' attention and deliver better service through it.
*This article draws from the Korea Tourism Organization's 2023 Tourism Industry Digital Innovation Open Seminar.
⚠️ All rights reserved. Cite this piece as 'ONDA (온다)' when quoting.