How cloud and AI are transforming the travel industry
In every corner of the travel industry, cloud and AI are more than buzzwords — they are catalysts for real, measurable change. What was once experimental is now core to how airlines, travel platforms, and hospitality companies rethink operations, serve travellers, and scale at speed. In a recent Pod Leaders episode with Massimo, Global Head of Travel at AWS, we heard first-hand how these technologies are reshaping the industry from legacy systems to agile, data-driven futures.
Whether you lead airline IT strategy, commercial technology, revenue management, or digital transformation, understanding how cloud and AI intersect with airline systems is no longer optional — it is strategic.
Why cloud computing matters to travel
Cloud computing is foundational. Unlike legacy mainframes and siloed infrastructures that dominate many airline back-offices, cloud platforms allow organisations to run applications and data workloads without owning physical servers. At AWS, cloud solutions have helped airlines modernise operations, optimise data storage, and improve resilience and scalability across the value chain.
Massimo Morin
Massimo described how AWS’s travel and hospitality practice started small, aiming to convince travel companies that the old way of doing business was no longer sustainable. Today, airlines are lifting core systems, data stores, and even pricing engines into cloud environments to support real-time workloads, analytics, and AI modelling.
Cloud adoption also solves the perennial problem of technology fragmentation in travel. Nearly every major airline system — such as passenger service systems, loyalty databases, and customer relationship systems — traditionally lived in its own silo. Cloud platforms make centralising and democratising that data easier and more cost-effective. That creates the foundation on which AI can truly deliver.
AI extending the reach of airlines
Artificial intelligence, and especially generative AI, is quickly reshaping how customers experience travel and how airlines operate behind the scenes.
A McKinsey report shows the travel sector is moving from early AI pilots to more mature use cases across personalization, operational efficiency, and decision automation. However, much of the industry is still in the early stages of AI maturity compared with other sectors — which means we are only seeing the beginning of what’s possible.
Personalisation and customer experience
AI enables airlines to know their customers better. Massimo highlighted how a unified view of customer data — something nearly every airline struggles with — is critical before AI can generate value for marketing, sales, and service. When customer data is fragmented across loyalty, CRM and legacy systems, AI has no reliable foundation to learn from. Solving that unlocks powerful personalization and customer engagement capabilities.
On the customer experience front, generative AI and machine learning are being used to build systems that communicate in plain language, assist agents, and proactively suggest solutions. For example, some airlines are training language models to interpret and summarise passenger records and itinerary details, vastly speeding up call centre interactions and reducing friction for travellers — something Massimo called “technology at its best.” This shift enhances both employee experience and customer satisfaction.
Operational optimisation
Airlines are also using AI and cloud together to streamline operations. Beyond personalization, AI models analyse historical and real-time data to forecast demand, optimise pricing and even reduce waste. At Ryanair, for example, an AI-driven “panini predictor” helps forecast food demand and reduces waste while increasing ancillary revenue — a simple but powerful example of operational optimisation. Massimo shared this story as a clear illustration of how focused innovation drives measurable business results.
On a broader scale, partnerships between major airlines and cloud providers like flydubai and AWS are leveraging cloud infrastructure and AI to enhance customer experiences and digital capabilities.
Breaking down legacy barriers
One of the biggest challenges in airline transformation is overcoming legacy systems. These long-standing technologies were never designed to support cloud workflows, let alone AI-driven applications. Even today, many airlines rely on green-screen systems and rigid mainframes that require specialised skills to operate. Massimo emphasised that modernisation isn’t just technical — it’s cultural.
Cloud migration helps organisations break down internal silos and share data more effectively. But to reap the benefits of AI, airlines must first solve data accessibility and reliability challenges. In other words, cloud is the necessary first step; AI is the value accelerator.
Real-world industry momentum and news
The innovation happening today isn’t confined to strategy conversations — it’s showing up in real deployments and partnerships:
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PROS, a leading airline offer management provider, recently announced a strategic shift to focus solely on travel technology, embedding AI into offer management to drive revenue opportunities for carriers and improve customer experiences.
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Sabre announced a partnership with BizTrip AI to build AI-powered business travel assistants, signalling deep collaboration between traditional travel platforms and next-gen AI systems.
These developments highlight how both legacy players and new entrants are embracing AI and cloud to modernise travel workflows, from corporate booking assistance to dynamic pricing and personalised retailing.
What this means for hiring leaders
For CIOs, CTOs, and other leaders planning tech investments, there are a few practical takeaways:
1. Invest in data foundations
AI investments without clean, accessible data are unlikely to deliver business impact. Prioritise integration, governance, and cloud data architectures.
2. Align AI with business outcomes
AI use cases should be tied to clear KPIs — whether revenue uplift, churn reduction or operational cost savings — rather than speculative experimentation.
3. Partner strategically
Cloud providers and AI platforms bring tools and scale, but they must be paired with domain expertise. Bringing in partners who understand both travel and technology — like the recruitment services at Thornton Gregory — can help you land the right talent to execute these complex transformations.
The human element still matters
Despite all the technology, Massimo’s reflections on his career remind us that travel is fundamentally about people — connecting cultures, experiences and stories. Technology should be an enabler, not a barrier. Cloud and AI amplify human potential when thoughtfully applied, but the personal touch — whether in customer service or organisational culture — remains central.
