Jeff Kim, CEO of Yanolja Cloud, explores how it will affect travel businesses
Guest Post: Vertical AI - The game-changer for real-time pricing and personalisation in global travel
The Paris Olympics this past summer offered a preview of the challenges the global travel industry will face with upcoming events like Travel Tuesday and the 2026 World Cup: balancing supply and demand while delivering real-time, personalised offers to consumers.
With traditional AI systems struggling to meet the specialised needs of the travel industry, Vertical AI has emerged as a critical innovation, offering tailored solutions specifically for the travel and hospitality sectors.
According to the Global Rescue Spring 2024 Traveler Sentiment and Safety Survey, 75% of respondents say travel experiences are more important than possessions.
This shift in consumer priorities, combined with the soaring interest in peak travel moments like Travel Tuesday - which according to McKinsey, saw search interest surge by 500% in the past two years - is putting immense pressure on travel companies to scale and personalise their services.
Vertical AI, with its industry-specific focus, is uniquely suited to tackle this challenge, addressing the complex demands of real-time pricing and inventory management in ways generative AI systems cannot.
Why Vertical AI is the game-changer in travel
Unlike generative AI systems that provide broad insights across different fields, Vertical AI specialises in travel-specific data, trends, terminology, and consumer behaviors. This allows businesses to implement more effective dynamic pricing models and offer highly personalised experiences that adjust in real-time.
For instance, during the Paris Olympics, despite record listings on accommodation booking platforms, many properties remained unbooked - demonstrating a clear mismatch between supply and demand. Vertical AI-driven pricing tools could have mitigated this by adjusting rates dynamically based on demand spikes and other data inputs, leading to higher occupancy and maximised revenue.
Vertical AI’s capabilities go beyond demand management, enabling travel companies to rapidly refine their offerings in response to local conditions during high-demand periods.
Personalisation at scale: Meeting consumer expectations
In addition to optimising pricing, personalisation is where Vertical AI truly excels. Travel companies need to do more than offer competitive rates—to meet the demands of modern consumers, they must deliver tailored, memorable experiences. Whether it's recommending a luxury hotel for a high-net-worth traveler during the Paris Olympics or providing a last-minute flight deal for Travel Tuesday, Vertical AI’s detailed understanding of the travel industry ensures that businesses can efficiently meet evolving customer expectations.
Looking ahead, the stakes will only grow with large-scale events like the 2026 World Cup in North America and the Los Angeles Olympics, where millions of travelers will converge on key cities. Vertical AI will play an important role in managing the complexities of these events, offering real-time, evolving solutions that ensure seamless and personalised travel experiences for every customer.
The Road Ahead
As the travel industry braces for the next wave of global events and shifting consumer demands, one thing is clear: companies that adopt specialised AI solutions like Vertical AI will stay ahead of the curve. Those who embrace it will not only enhance their operational efficiency but also provide the personalised, real-time travel experiences that today’s consumers expect.
By focusing on precision, personalization, and real-time responsiveness, Vertical AI is reshaping the future of travel—one event at a time.