Beyond Automation – How AI Transforms Travel From Within

What if the biggest breakthrough in travel wasn’t a new destination, but a new way of operating entirely? While the world focuses on consumer-facing innovations, a quiet revolution is happening behind the scenes—one that’s redefining how the entire travel ecosystem functions.

For decades, travel’s backend operations have resembled a complex game of telephone—manual processes, miscommunications between agencies and hotels, and financial reconciliations that drift into administrative black holes. This inefficiency wasn’t just accepted; it was institutionalized. But now, artificial intelligence is silently restructuring these foundations.

When executives examine operational inefficiencies in travel, they’re often startled by what they find. Booking miscommunications, manual verification processes, and commission disputes create business pain points that ripple throughout the ecosystem. It would not be surprising for a global hotel chain to discover that manual commission reconciliation was costing them millions annually in administrative overhead and missed payments—essentially throwing money into an accounting abyss. Meanwhile, a regional TMC may find that their agents are spending thousands of hours yearly on booking verification calls—time that could have been directed toward consultative selling and relationship management.

The most powerful innovations often happen not through disruption, but through transformation of existing systems. In travel management, AI is enabling this transformation across critical domains, starting with financial precision and transparency. Traditional commission management resembles archaeology more than accounting—digging through disparate systems to reconstruct transaction histories. AI-enabled platforms are creating unified, transparent records that eliminate this archaeological expedition. For a mid-sized European TMC, implementing automated reconciliation dramatically reduced payment cycle times, improving cash flow predictability.

Remember when we thought automation would replace human jobs? The reality is more nuanced. The most successful implementations pair AI with human expertise. Agents aren’t making fewer calls—they’re making different calls. Instead of verification calls, they’re having strategic conversations about optimizing travel programs and enhancing traveler experience. This shift represents the true potential of human-machine collaboration.

When booking details fall through communication gaps, travelers suffer the consequences. AI is closing these gaps before they affect the traveler. The best travel technology is invisible. Travelers don’t care about the automation—they just notice that their rooms are ready, their preferences are honored, and their experience is seamless. This seamless experience is the ultimate goal of all technological advancement in the travel space..

As brands start to  master the basics of automation, they’re discovering unexpected opportunities for innovation. By analyzing patterns in booking behaviors, commission structures, and operational workflows, AI is uncovering insights that were previously invisible. For example, a hotel group  could identify optimal commission structures that increase TMC bookings while maintaining profitability—a win-win that conventional analysis had missed.

Perhaps the most profound shift is happening in how travel professionals view their roles. As routine tasks become automated, the emphasis shifts to uniquely human capabilities: relationship building, complex problem solving, and creative strategy. Automation isn’t making teams smaller—it’s making conversations bigger. Organizations are spending less time on transactions and more time on transformations.

The companies leading this evolution share a common approach: they view AI not as a technical implementation but as a business transformation. They’re asking fundamental questions about how work should be organized in a world where machines handle routine processes with greater speed and accuracy than humans ever could. For travel executives, the critical question isn’t whether to adopt these technologies, but how to reimagine their organizations around new capabilities. 

As you consider your own operation, what hidden inefficiencies might be masquerading as “just the way things are done”? In those gaps between expectation and execution lies the opportunity for transformation. The future belongs to those who recognize that the greatest competitive advantage isn’t in doing things differently, but in doing different things entirely.

This transformation is now accelerating through strategic industry moves. DerbySoft’s recent acquisition of Arise—an AI platform focused on travel agent-hotel communication and commission reconciliation— illustrates how the market is evolving. Such consolidation represents more than business strategy; it signals a fundamental shift in how we are approaching long standing challenges. Bringing specialized AI capabilities into our established ecosystem creates new possibilities for addressing friction points that have persisted for decades. The industry is moving beyond isolated innovations toward comprehensive solutions that transform multiple processes simultaneously.

What will you do differently tomorrow that you’ve been doing the same way for years? The travel organizations that thrive won’t just adopt new technologies—they’ll reimagine their entire approach to creating value in a world where the invisible work of management becomes increasingly automated, leaving humans free to focus on what we do best: creating exceptional experiences.

About the Author

Duane Overgaard is the Divisional CEO, Hospitality, of DerbySoft. With over 30 years of experience in the hospitality industry, he has a diverse skill set that includes account management, business development, and contract negotiation. Duane has held various leadership positions at renowned companies such as Sabre Corporation, Wyndham International, and Hilton Hotels & Resorts, where he has demonstrated expertise in hotel management and marketing strategy. He is known for his strong team-building and competitive analysis skills. Duane is currently based in the Dallas area of the United States.