Itay Green. Photo: Sivan Faraj AI is reshaping the tourism map.
The greatest arrogance of success is believing that yesterday's actions will suffice for tomorrow. This arrogance poses a major threat to the tourism industry. Innovation isn’t just a buzzword for board meetings; it’s essential for survival.
According to BCG, around 83% of corporations rank innovation as a top priority. In the world of experiences, flights, and hospitality, this figure is more critical than ever, as the modern traveler demands digital accessibility, complete transparency, and the ability to tailor vacations without relying on traditional, slower intermediaries, while technological advancement outpaces any tourism company’s ability to produce solutions independently.
AI allows airlines, hotel chains, and travel agencies to completely change the rules of the game. With smart algorithms to predict demand, machine-learning-based recommendation systems that tailor the perfect vacation for each traveler even before they choose a destination, and virtual assistants providing 24/7 availability, AI has transformed from futuristic technology to the 'co-pilot' of the entire tourism industry.
The costly refusal to innovate and adapt to contemporary times is exemplified by the painful case of Thomas Cook, one of the oldest tourism companies in the world, founded in the 19th century and collapsed in 2019.
For decades, the company dominated the 'all-inclusive' vacation market and maintained a vast network of physical travel agencies and aircraft. While the world swiftly transitioned to the digital age, with platforms for price comparison, direct online bookings, and apartment rental sites like Airbnb, the company’s management clung to its outdated model and refused to invest in genuine innovation.
Thomas Cook's sudden collapse is precisely what awaits organizations that don't embrace AI today. A tourism organization not adopting AI now is akin to a 2019 travel company focused on physical agencies: outdated and inefficient, possibly keeping afloat for a short while, but eventually facing a sudden or gradual collapse.
The world is moving too fast for the industry to rely solely on in-house developments or old reports and past experiences, pre-digital era. Tourism organizations must understand that no matter how brilliant their employees are, most of the smartest and most successful people will always be outside the company's walls.
The challenge is to leverage them to be more innovative, profitable, and successful, and to offer customers a better and personalized experience. The best way to cope with rapid technological pace is through collaboration with AI startups and integrating their technology within industry companies.
Such collaboration is the only way to progress at the fastest and most efficient pace in a world where technological change far exceeds the pace of decision-making in the industry. Don't try to develop within the corporation; it's a known failure waiting to happen.
This is especially true today, during times of crisis. Historically, any crisis has been a powerful catalyst that accelerates change processes and requires organizations to act immediately, before it’s too late.
Crisis forces airlines, hotel chains, and travel agencies to shed outdated work patterns, quickly adapt to customers’ changing needs, and practically prove their relevance in a rapidly changing world.
The AI era should be seen as an opportunity. The industry faces numerous challenges, and adopting technology is a necessary condition for confronting them.
In July this year, the Ministry of Tourism launched the Travel Innovation IL community. Participants include hundreds of senior figures from the tourism and technology industries, travel tech entrepreneurs, investors, and representatives from government and academia.
The community serves as a platform for learning and direct collaboration between the industry and talented entrepreneurs who are critical partners in ensuring the industry’s prosperity.
“Innovation isn’t just a buzzword in board meetings; it’s essential for survival.”
Itay Green is an innovation expert, a sought-after speaker, and a leading strategic consultant in organizational transformation, AI implementation, and innovation. Green guides international organizations in adapting to rapid technological changes and creating a sustainable competitive advantage. He is the author of “Elimination or Innovation,” recently published in the USA.
At the 2026 Passport Group's Man of the Year event, Green received a special recognition award for his contributions in innovation, AI, and organizational transformation, and for launching the Travel Innovation IL community.
The Last Boarding Call for Old-School Tourism – Page 102
The Last Boarding Call for Old-School Tourism – Page 103