The AI Revolution in Travel: Smarter, Fairer Pricing for 2025 and Beyond

The AI Revolution in Travel: Smarter, Fairer Pricing for 2025 and Beyond

By Nishang Narayan

Published on January 28, 2025

As AI becomes increasingly integral to the travel industry, it brings immense opportunities for smarter pricing and enhanced customer experiences. However, challenges around fairness and transparency have emerged, requiring travel providers to adopt ethical practices to maintain trust and loyalty.

Hyper-Personalized Pricing: Opportunity or Ethical Challenge?

AI-powered pricing uses consumer data—such as past spending habits and demographics—to create personalized offers. While this enhances value for travelers, it raises concerns about fairness. Transparency in pricing is critical to ensure customers feel valued and not unfairly targeted.

Moreover, perceptions of price as an indicator of quality play a significant role in decision-making. Many customers are willing to pay a premium for perceived superior service, influencing their travel choices and raising expectations for personalized experiences.

Why Traditional Pricing Models Fall Short

The travel industry has long relied on seasonal trends and basic supply-demand principles to set prices. However, fluctuating demand, rising competition, and evolving customer expectations make these static models ineffective in today’s dynamic environment.

AI-powered pricing strategies are emerging as the solution, offering real-time adaptability and data-driven precision to optimize rates based on shifting market conditions and customer behavior.

Data-Driven Precision: Smarter Pricing Decisions

One of AI’s most valuable contributions is its ability to process massive datasets and generate actionable insights.

  • AI analyzes customer booking history, competitor prices, and even geopolitical events, enabling travel companies to adjust rates in real time.
  • Predictive analytics help companies identify trends, such as customers’ preference for early-bird discounts or last-minute bookings.

This allows travel providers to offer personalized deals that enhance customer satisfaction while boosting profitability.

Predictive Models: A Game-Changer in Forecasting

AI’s predictive models are transforming how pricing trends are forecasted. By analyzing market shifts, consumer sentiment, and disruptions like pandemics, AI helps:

  • Travelers make smarter decisions (e.g., booking flights during low-demand periods).
  • Companies refine revenue strategies and optimize resource allocation.

For instance, during high-demand periods such as Diwali or Chhath Puja, travelers increasingly plan ahead for longer journeys, while shorter trips with higher supply encourage last-minute bookings. AI anticipates these behaviors, ensuring smoother experiences for all.

Dynamic Pricing: Enhancing the Customer Journey

image

AI enables flexible pricing models, allowing travelers to access rates that adapt to real-time demand and promotions.

  • Last-minute deals and premium upgrades are becoming more accessible, catering to travelers who prioritize value.
  • As consumer preferences shift, AI-powered pricing ensures that premium options—like AC buses or mid-tier hotels—are priced fairly, encouraging customers to opt for better experiences.

Balancing Innovation and Ethics

While the benefits of AI in travel pricing are vast, ethical challenges remain. Travel companies must commit to:

  • Transparency in pricing to avoid alienating customers.
  • Responsible data usage to ensure fairness and build trust.

By addressing these concerns, the industry can maintain customer loyalty and foster a sense of fairness in pricing strategies.

 Vision for 2025 and Beyond

The integration of AI into travel pricing is reshaping the industry, offering:

  • Personalized, real-time pricing for travelers.
  • Efficient resource management for providers.
  • Greater customer satisfaction through tailored experiences.

However, the road ahead requires thoughtful adoption of ethical AI practices to ensure that the benefits are shared by both travelers and providers. By embracing innovation responsibly, the travel industry can unlock its full potential and thrive in a dynamic, competitive landscape.

About the Author:

image


Dr. Anshu Jalora, Founder & Managing Director of Sciative Solutions, is a leading expert in AI-driven dynamic pricing and revenue optimization for the travel and hospitality industries.


Mews expands Digital Key with Salto integration for seamless guest access

Mews expands Digital Key with Salto integration for seamless guest access

By Nishang Narayan

Published on July 12, 2025

Mews has announced a strategic integration with Salto’s smart locking system, enhancing its Digital Key offering and paving the way for a more seamless, contactless guest experience. Through this partnership, hotels using Salto’s access control can now enable guests to unlock rooms via their mobile devices using the Mews Hospitality Cloud—eliminating the need for physical keys altogether.

This move streamlines the check-in process, reduces manual front desk tasks, and strengthens overall security. Matt Welle, CEO of Mews, said, “Every step of the guest journey should be effortless. With Salto smart access for hospitality compatibility, more properties can reduce the friction around arrival and check-in. Digital Key is a win-win because it’s as much about operational efficiency as it is about improving guest satisfaction.”

Early results from Belgian brand YUST, which operates a hybrid model for short and long stays, show the integration’s impact. At its Antwerp property, 12% of guests checked in using Digital Key in the first month without any promotional push, and 64% of those with an active digital key used it to access their rooms. Dirk Van Gompel, CTO of YUST, shared, “Digital Key makes it easy for guests to go straight to their room, while creating real-time savings for our team, who can then focus on building real human connections.”

Salto’s Nora Urquiza highlighted the value of this collaboration, stating, “Our integration with Mews reinforces our commitment to delivering a seamless, secure, and modern digital experience through strong technology alliances.”

Beyond convenience, the integration also cuts down on environmental waste by removing the need for plastic keycards and supports a fully digital, on-the-go check-in and check-out process. Fully embedded within the Mews Hospitality Cloud, the Digital Key capability allows hotels to customise and automate the guest experience, opening new avenues for upselling and enhanced guest engagement.

Mews has been on a roll with tech enhancements, recently rolling out a Multicurrency feature for customers across Europe.


OYO Joins Hands with Yatra to Strengthen Business Travel Offerings

OYO Joins Hands with Yatra to Strengthen Business Travel Offerings

By Manu Vardhan Kannan

Published on July 12, 2025

Hospitality tech firm OYO has entered a strategic partnership with leading online travel platform Yatra, bringing over 500 company-serviced hotels under mid-premium and premium brands to Yatra’s booking platform for the first time. These hotels will cater specifically to the rising demand in the business travel segment across India.

The hotels listed include OYO’s SUNDAY, Palette, Clubhouse, Townhouse, Townhouse Oak, and Collection O brands. The collaboration covers key business hubs like Delhi-NCR, Mumbai, Bengaluru, Chennai, Kolkata, and Ahmedabad, along with fast-growing industrial and transit corridors.

OYO plans to list 1,000 more company-serviced hotels on Yatra by September 2025, enhancing Yatra’s accommodation offerings in emerging metros, where business travel is expanding due to infrastructure growth and regional economic activity.

India’s business travel sector reached $38.2 billion in 2024, making it the 8th largest market globally and 4th in Asia-Pacific. The OYO-Yatra partnership aligns with this growth by offering curated business accommodation solutions with added benefits such as:

  • Standardized amenities like clean linen, AC rooms, Wi-Fi, and hygienic washrooms
  • Centralized billing and GST-compliant invoicing
  • Flexible cancellation/rescheduling policies
  • Expense tracking and dedicated account managers for corporate bookings

Yatra, with over 800 large corporate clients and 10,000+ SMEs, earns 65% of gross bookings from corporate and B2B travel. This partnership adds substantial value to its users by expanding quality lodging options in previously underserved regions.

Earlier this year, OYO launched Oravel Travel Solutions, a vertical focused on corporate travel, offering end-to-end services like smooth check-ins, meal plans, event support, and custom holiday packages.

Speaking on the development, Varun Jain, COO of OYO, shared:

“While direct demand continues to be our mainstay, contributing nearly 80% of our total business, we are now looking to tap into a niche segment of business travelers who are exploring emerging business hubs. This partnership also opens up opportunities to cater to companies embracing blended travel programs, combining business and leisure.”

According to the Global Business Travel Association (GBTA), the business travel market is on track to return to pre-2019 levels by 2025, backed by strong corporate earnings and a rise in in-person meetings. This trend suggests a sustained increase in demand for reliable and quality stay options.

With this partnership, OYO and Yatra are set to redefine India’s corporate travel landscape, delivering convenience, flexibility, and consistency for the modern business traveler.


XECH Eyes Pan India Retail Growth, Launches Experience Centres in Ahmedabad & Hyderabad

XECH Eyes Pan India Retail Growth, Launches Experience Centres in Ahmedabad & Hyderabad

By Nishang Narayan

Published on July 3, 2025

XECH is making bold strides in its retail journey with the opening of its latest Experience Centre in Ahmedabad, located at Dhanlaxmi Complex, Ashram Road, Usmanpura. Designed to provide an immersive, hands-on shopping experience, the store caters to walk-in customers, resellers, and corporate buyers alike. This is XECH’s third major retail expansion, following the successful debut of its Hyderabad Experience Centre on 31st May, 2025, at Rudram Towers, PG Road, Secunderabad, and its flagship outlet in Pune which launched on 19th October, 2023.

The Ahmedabad inauguration saw participation from the company’s leadership team and local channel partners, making it a standout moment for tech enthusiasts and the retail community in western India.

Each of XECH’s stores is strategically set in high-growth urban centres, functioning as brand hubs where customers can explore the expanding range of lifestyle tech products, smart gadgets, and premium corporate gifting solutions. With robust expansion plans in place, XECH is targeting a 2X revenue growth this fiscal year, driven by its omni-channel approach, innovative product portfolio, and scalable business model. These Experience Centres are central to XECH’s goal of bridging the digital-physical divide — creating spaces where quality, speed, and tangible engagement meet.

image

Speaking on the expansion, Mr. Pranay Punjabi, Founder and CEO of XECH Technologies Pvt. Ltd., shared,

“Each city plays a strategic role in our retail vision. Pune gave us our first physical touchpoint, Hyderabad validated our scale strategy in a dynamic tech market, and Ahmedabad will strengthen our presence in western India — connecting us to customers who value smart, dependable tech. These are more than just stores; they’re brand experience hubs where people can interact with our innovations firsthand. We’re focused on making practical, well-designed technology accessible to those who need it — whether at home, work, or in business.”

image

Shoppers visiting these stores can explore XECH’s entire tech ecosystem, including its bestsellers and upcoming launches, all in an interactive setting. From portable kettles and cordless vacuum cleaners to Bluetooth clocks, eye massagers, tyre inflators, and garment steamers, XECH’s range is sharply focused on addressing real-world needs with intuitive, multi-functional, and thoughtful tech — equally suited for individual users and corporate gifting.

To celebrate the Ahmedabad launch, XECH is offering an exclusive 10% in-store discount throughout July, inviting customers to experience their innovations firsthand.

Looking ahead, XECH plans to continue expanding its retail footprint across India in the coming quarters, building more such immersive spaces that blend tactile experiences with the convenience of modern retail.

Stay up-to-date with the latest Hospitality news and trends in the Hospitality industry!

Subscribe to Hospitality news e-magazine for free and never miss an issue.

By clicking subscribe for free you agree to the Terms & Conditions and acknowledge our Privacy Policy.

Advertise With Us

We have various options to advertise with us including Events, Advertorials, Banners, Mailers, etc.