Has any other tech ever promised so much but delivered so little as AI did last year?
But changes are afoot that could make 2025 the year AI finally starts to deliver real-world, tangible results.
To read the headlines and summarize the general mood back in 2023 regarding the potential of AI, we might have assumed that by now we’d be living in the future. While the journey is ongoing, real-world applications of AI are evolving steadily, especially in travel. However, from both B2B and consumer perspectives, 2024 highlighted the need for more practical, meaningful implementations.
Why hasn’t AI made the leap many predicted? Not for lack of trying. The industry discussed it extensively in meetings and at conferences. Many companies even rushed to integrate it into their products and services. However, legacy systems — a persistent challenge in travel — presented significant barriers to seamless integration, often leaving innovations siloed or disjointed.
With so much hype and pressure to impress, AI solutions in 2024 sometimes prioritized flash over functionality. This rush to showcase innovation resulted in prototypes rather than polished, user-ready solutions. If 2024 taught us anything, it was that style over substance might open doors with investors but doesn’t necessarily deliver sustainable improvements for travel technology.
At events like The Phocuswright Conference recently in Phoenix, which our colleagues attended, industry leaders reflected on AI’s potential and its current limitations. A recurring theme emerged: while AI excels in back-office roles such as data management and handling FAQs, it is still evolving in tackling complex, customer-facing challenges on a large scale. However, it is only a matter of time before AI’s capabilities move beyond these initial limitations.
Another significant shift in 2024 was the emergence of low-cost AI solutions, such as the Chinese DeepSeek LLM model, which shook the market by proving that high-efficiency AI doesn’t require the massive investment levels seen in previous years. This development has the potential to bring down the costs of AI training and development, accelerating the availability of open-source models and lowering the barrier to entry for companies wanting to integrate AI solutions into their product suites. With AI becoming more accessible, we may see a democratization of innovation that allows smaller players to compete alongside industry giants. This evolution signals a shift in how AI will be developed and deployed, making it more practical and attainable for businesses of all sizes.
Despite these hurdles, 2024 revealed success stories where AI addressed real-world problems. For instance, tools that streamlined rebooking processes or enhanced legacy systems showcased AI’s strength as a practical enabler rather than an all-encompassing solution. These implementations proved that AI’s transformative potential lies in solving specific challenges rather than promising sweeping changes overnight.
Looking ahead, 2025 promises to be a pivotal year for AI. With the lessons of 2024 fresh in mind, the focus is shifting toward more deliberate, purpose-driven innovation. Companies now face greater scrutiny and must prioritize profitability, driving them to move away from flashy, experimental features toward tools that solve real problems.
AI itself is also evolving, making integration with existing systems smoother and more natural. This shift from gimmicky bolt-ons to seamless workflows aligns with my belief that AI is a critical feature of any online booking platform. We see it as a transformative force when applied thoughtfully and realistically.
As we consider what 2025 will bring, could AI finally move beyond buzzwords and hype to deliver on its transformative promise? At Vibe, we think so. AI is an incredibly powerful tool — and when applied with purpose and focus, it will redefine the future of travel technology in meaningful and lasting ways.
