Operators look to complexity as digital platforms erode margins

Contrasting views exist on the disruptive effects of AI on the tourism sector, but the technology holds immense power to enhance safari experiences by analysing guest preferences and anticipating the needs of different traveller types.

During a panel discussion at the SATSA Conference in Johannesburg on Wednesday, September 10, Go2Africa MD Maija de Rijk-Uys highlighted the necessity and usefulness of AI tools for tourism businesses, singling out their power in elevating customer service.

“It’s really about amplifying what we as human beings can give back to other people. AI helps us to scale listening, understanding and giving people exactly what they need. This in turn scales reassurance and trust – and trust gives us repeat business,” she said.

“By providing sentiment analysis, tracking preferences and helping you to work through all communication you have had with a client, we can understand and define what a client needs.” De Rijk-Uys emphasised that the use of technology in the safari industry was not about replacing humans.  “The safari of the future – the connected safari – is about humans being enabled and powered by tech. In the travel business, the special connection we have with people can be done so much better if we harness technology better,” she said.

Losing margins to disruptors

One of the biggest impacts of technology on the tourism industry has been the emergence of OTAs and other online tourism businesses that have reduced the role of intermediaries (such as DMCs and local tour operators) between suppliers and consumers.

“Much of the tourism industry has to rely on these online platforms as selling channels, and the consequence of this disruption is a definite loss of market share to digital competitors and an erosion of profit margins,” said Tourvest Destination Management CEO Martin Wiest.

This was particularly true in a “commoditised” destination such as South Africa, where well-developed transport infrastructure made it easier for OTAs to sell directly to consumers, he said.

“You wouldn’t want to use one of the giant OTAs to do gorilla trekking in Uganda, but if you want to go to Cape Point with your rental car, it’s easy. As a tour operator or DMC, complexity is actually our friend. It’s why Tourvest has started to invest more in destinations such as Madagascar, Rwanda and Uganda because they require on-the-ground expertise.”

Replacing SEO 

The most notable impact of AI search through Large Language Models (LLMs) is the disruption of Search Engine Optimisation (SEO) strategies.

“If you remove Google searches and add a layer like an LLM, then the economics of that model change. So the people who rely on SEO and pay-per-click campaigns in their digital marketing strategies will definitely have to look at the implications of LLM frontiers,” said André Rainsford, Owner and Director of technology company, Sapconet.

He added that large search engines were likely already making deals with LLM platforms to have content prioritised in AI-driven searches. “I can’t imagine that the likes of Google are going to sit by and lose the billions of dollars of ad spend they make,” Rainsford said.