An Assessment of the Effects of Artificial Intelligence on Tourist Behavior and Decision-Making in San Jose Del Monte City, Bulacan

An Assessment of the Effects of Artificial Intelligence on Tourist Behavior and Decision-Making in San Jose Del Monte City, Bulacan

Genine Rianne A. Raynera^1*, Sandara Kaye B. Balasta², Khay Ingrid E. Capili³, Sarah Jane T. Haber, MBA⁴

^1,2,3Department of Hospitality and Tourism Management, Bulacan State University-Sarmiento Campus, City of San Jose Del Monte, Bulacan, Philippines, 3023

⁴Master in Business Administration, Department of Business Administration, Bulacan State University-Sarmiento Campus, City of San Jose Del Monte, Bulacan, Philippines, 3023

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.90400099

Received: 22 March 2025; Accepted: 27 March 2025; Published: 30 April 2025

ABSTRACT

The study utilized a mixed-method research design employing a quantitative and qualitative approach to investigate the effects of existing artificial intelligence tools provided by the travel agencies on the tourists’ behavior and decision-making in San Jose Del Monte City, Bulacan. The study revealed that most tourists agree that chatbots greatly contribute to travel agencies’ ensuring good quality travel services. Moreover, most tourists agree that the virtual travel assistants provided by the travel agencies greatly contribute to and help them plan and book their travels. Furthermore, the research findings show that most tourists believe that AI tools used by travel agencies can enhance their travel decision-making and overall experience. In addition, the relationship between chatbots, virtual travel assistants, and artificial intelligence, as well as how they affect tourists’ behavior and decision-making, was explored. The result shows the p-value of .000, which is less than the value of 0.05. Therefore, the null hypothesis is rejected, indicating a significant relationship between the variables of chatbots, virtual travel assistants, and artificial intelligence to the tourist’s behavior and decision-making. It is also noted that there is a strong positive correlation between each of these variables. The research findings provide a comprehensive overview of the current state and impact of AI tools in travel agencies in San Jose Del Monte City, Bulacan. Some of the travel agencies use a system that is connected to the airlines, highlighting the importance of flexibility and patience in meeting clients’ needs.

Keywords: Artificial Intelligence, Chatbots, Virtual Travel Assistants, Mixed-method research, travel agencies, tourists’ behavior and decision-making

INTRODUCTION

The world has collectively transitioned from physical to digital connectivity. This shift has revolutionized how humans interact with each other, leading to numerous advancements. One of the most significant developments in today’s world is the innovation of artificial intelligence. The innovators behind artificial intelligence recognized that humans might need an assistant to help them accomplish tasks while managing their time efficiently. They developed a system that functions and thinks like a human, hence the creation of Artificial Intelligence—an artificial entity with human-like intelligence. Thus, the introduction of Artificial Intelligence into various industries, including the tourism industry, has brought transformative changes. Therefore, there is an ongoing demand to understand how the integration of artificial intelligence into the tourism industry will affect tourists and travelers. The research seeks to understand tourists’ perceptions of AI, its impact on their behavior, how it affects their decision-making, and its influence on their booking experience.

The impact of Artificial Intelligence on tourist behavior and their decision-making is rapidly becoming significant in San Jose Del Monte, Bulacan, as the city transitions from its small-town feel into becoming a  thriving destination for all sorts of travelers. As such, it is very important to understand what influences the travel experience because technologies like personalized recommendation systems and chatbots are really redefining how tourists access information and engage with local attractions. (San Felipe, 2023).

In recent years, countries around the world have prioritized tourism as one of the key economic sectors that helps in the overall economic development of a country. According to the United Nations World Tourism Organization (UNWTO: Tourism Highlights 2023 Edition) report released, the total world tourism revenue in 2023 was $1.4 trillion US dollars. In the Philippines, the Tourism Direct Gross Value Added (TDGVA) amounted to P2.09 trillion in 2023. On the other hand, artificial intelligence is prevalent nowadays, as it makes human work easier and faster. In this ever-changing world, the incorporation of artificial intelligence into the industry, specifically in the tourism industry, has become increasingly significant in enabling the travel industry to achieve long-term growth and development. With that, the Asia-Pacific Economic Cooperation (APEC) meeting stated that the use of digital technology is one of the key factors that contribute to the continued improvement and expansion of the tourism industry. One of the emerging technologies that will accelerate the development of the industry towards digital transformation would be Artificial Intelligence (Tsaih & Hsu, 2023).

Forming a dynamic duo that stimulates modern innovation, technology and AI are intertwined in view of the fact that AI is a subset of technology. AI is a computer system performing tasks that typically require human intelligence. Essentially, AI enables machines to imitate human cognitive functions, including problem-solving and decision-making. AI has transformed numerous sectors, and the tourism industry is no exception. It develops travel experiences by offering personalized recommendations and analyzing user preferences and behaviors. It also provides virtual assistants that help tourists navigate their trips by assisting with bookings, providing real-time updates, and answering inquiries efficiently. As the tourism sector continues to expand, the integration of AI is foreseen to drive significant advancements in service delivery and operational efficiency.

Artificial intelligence has not just started recently but has yet to be noticed. According to the study of Sarah Ghasemian (2023), by the year 1994, the Emergence of Online Travel agencies had already started. Websites like Expedia and Travelocity are some ways people book their flights and hotels. By the time 2007, with the introduction of the iPhone and subsequent smartphones. Also, in this era, the use of travel apps has become higher. In late 2010, with the rise of the sharing economy, companies like Airbnb and Uber rattled the traditional tourism landscape. The year 2023 is the start of the Virtual Reality Technologies that are being used in the tourism industry, which provide mesmerizing immersive experiences and travel to virtual tours. In 2017, artificial intelligence in travel has already been practiced in terms of rapid customer support, more personalized recommendations, and a smooth experience of travel. 2019 is the year when Blockchain Technology entered Tourism. Blockchain applications are smart contacts and offer more security, transparency, and travel transaction efficiency. By the time frame of 2021, Contactless technologies and health measures are strictly required due to the COVID-19 pandemic, digital payments, health passports, and ensuring safer travel experiences are in demand.

Despite the global advancements in artificial intelligence, the Philippines was posed to be one of the countries that needed to catch up in adopting this development. According to the AI Index 2019 by Stanford HAI (2019), they conducted a study wherein they compared the level of adoption of Artificial Intelligence in East-Asian Countries, such as Vietnam, Thailand, Indonesia, Malaysia, and the Philippines. With that being said, this study aims to assess the level of adoption of artificial intelligence in the tourism industry, specifically in travel agencies in San Jose Del Monte City, Bulacan.

As Artificial Intelligence is being integrated into a number of industries, it has gradually grown in many variations, but more visibly in the tourism industry. This paper will discuss the Effect of Artificial Intelligence on Tourist Behavior and Decision-Making in San Jose Del Monte, Bulacan. The interaction between artificial intelligence technologies and tourism can be understood for the tourist experience, and choices can look ideal with the help of technological advancement.

The objective of this study is to assess the influences of artificial intelligence on tourist behavior and decision-making. On top of that, this study aims to analyze the demographic profiles of respondents, including age, sex, income level, and employment status. Furthermore, it investigates how the tourist assesses Artificial Intelligence in relation to chatbots and virtual travel assistants. Moreover, it explores the perceptions of the travel agency about the impact of AI on tourist behavior and decision-making. Finally, it examines whether there is any relationship between tourist behavior and their decision-making towards Artificial Intelligence.

This study contributes valuable insights and knowledge in the industry of Tourism and Hospitality. It allows travel agencies to understand how artificial intelligence shapes the perceptions and behaviors of the tourists as well as provide services that are appropriate and suitable based on the needs and desires of the tourists, which will increase their business’s effectiveness. This study also contributes to tourists’ understanding of artificial intelligence, which can provide personalized recommendations to them, establishing better decisions for them. Further, the study offers knowledge for travel agencies on integrating Artificial Intelligence effectively into their operation system. Moreover, it paves the way for travel agencies and other field industries to conduct further research into the potential benefits and challenges of using AI tools in operations systems.

BACKGROUND OF THE STUDY

Artificial Intelligence is increasingly becoming omnipresent and transforming various fields worldwide. The tourism industry is one of the main sectors that are being affected by Artificial Intelligence, offering them great opportunities to develop and improve their services. With that, Artificial Intelligence tools can be a great way to promote the tourism industry by influencing travel behavior (Tussyadiah & Miller, 2019). One of the key areas that implement Artificial Intelligence in the tourism industry is the incorporation of AI-powered chatbots and virtual travel agents to offer high-quality customer service to travelers.

According to Valenzuela et al. (2023), customer service is one of the significant aspects of the company’s operations, and the organizations are focused on providing the highest quality of service. Artificial intelligence tools, such as chatbots and virtual travel agents, enhance this by enabling swift responses to travelers’ inquiries. With that, artificial intelligence can help boost the overall long-term success of companies.

Surbakti (2024) stated that Online Travel Agencies (OTAs) are one of the important sectors in today’s tourism industry. They currently utilize artificial intelligence in their operations to enhance overall customer experiences by integrating various artificial intelligence tools such as dynamic pricing and personalized recommendations. Leveraging artificial intelligence transforms the tourism industry and improves travel experiences by fostering innovative artificial intelligence tools. Moreover, Car (2024) stated that Online Travel Agencies (OTAs) utilized artificial intelligence to streamline their operations, providing tailored recommendations and assistance in the booking process with the help of AI-powered chatbots and virtual travel assistants. Therefore, it is increasingly noticeable that these artificial intelligence tools play a key role in enabling individually tailored service experiences for tourists.

According to Adamopoulou and Moussiades (2020), as cited in (Bansal and Khan, 2018), a chatbot is a type of artificial intelligence program combined with a human-computer interaction (HCI) model. It is designed to imitate conversation with humans, offering seamless communication, providing an engaging answer, and immediately answering their queries.

The study entitled “AI-based chatbots in customer service and their effects on user compliance” by Adam, Wessel, and Benlian (2020) discusses how anthropomorphic design cues affect user compliance when interacting with an AI-based chatbot in customer self-service. Anthropomorphic design cues mimic human-to-human communication. Chatbots with anthropomorphic design cues tend to be more flexible and give empathetic responses to the users’ queries. They explain that user perception is affected by how the chatbots articulate their messages and how they address users (e.g., first-person singular pronouns and/or their given personal names). A chatbot is also expected to be more life-like and empathetic by using signals that show its understanding of the queries or statements provided by the users before responding (e.g., “I understand your concern…” And the official response will follow this). This relates to our study, as it discusses how AI-based chatbots affect travel behavior and decision-making. Thus, when travelers encounter a chatbot with anthropomorphic design cues, they are highly likely to make the final decision to book with a travel agency that uses an AI-based chatbot.

According to the Institutes of Electrical and Electronics Engineers or IEEE, a travel assistant that gives a guide by virtual means reduces the great investment needed to plan for traveling. Thus, the concept is about developing a speech-enabled travel bot, which is a travel tour guide. This will eventually engage with the user while providing pertinent information to enhance the knowledge of each destination. Also, I help clients book travel accommodations or make their reservations.

According to Feng (2024), as stated by the Manila Times News (2024), Artificial Intelligence is beneficial for enhancing the quality and efficiency of the operations of a company. Ms. Feng is the head of marketing at Trip.com Group, and she highlighted at their conference that AI-powered digital ads have driven a 25% increase in impressions, which has improved the return on investment (ROI) across their global markets by 42%. Moreover, the role of Trip.com’s AI travel assistant, TripGenie, has helped increase dodoublvelers’ conversion rate and improved user engagements. This AI travel assistant has reshaped the way for travelers to discover and book their trips. The relevance of this article to our study is that Trip.com is a global online travel agency that utilizes and incorporates artificial intelligence tools and technologies into its operations. In their case, they created and developed their new AI travel assistant, TripGenie, which assists travelers during their travel decision-making, increasing their intention to book a trip directly through this online travel agency.

Maghirang (2022) stated in the Manila Times News that they had a talk with the president of Uniphore APAC, Ravi Saraogi, about how artificial intelligence could help restore the tourism industry, especially after the COVID-19 pandemic. According to Saraogi, as stated by Maghirang (2022), conversational AI, such as AI travel assistants, utilizes a set of technologies that help them recognize and comprehend human languages. This could help tourism businesses strengthen their relationship with their customers, as AI travel assistants can provide these customers with the necessary services before, during, and after their trip. The first conversation with AI travel assistants happens right before the trip when travelers seek help booking their travel. They can also be provided with necessary information about their journey, such as itineraries, recommended activities, and practical tips during their trip. Therefore, AI travel assistants are an important factor in boosting the travel industry. The relevance of this to our study is that when travel agencies adopt AI travel assistants, there is an increased chance for travelers to book their trips.

San Jose Del Monte, a city with a rich cultural heritage and scenic attractions, has seen a growing upsurge of visitors. This growth represents an opportunity to improve the tourists’ experience. The use of AI in San Jose Del Monte’s tourism industry is still in its initial stage, regardless of the possible advantages. Therefore, this study would seek to determine the effect of AI on tourists’ behaviors and decision-making.

Theoretical Framework

In 1986, Fred Davis developed an information systems theory, The Technology Acceptance Model (TAM).  It entails how users come to adopt and utilize technology. TAM introduces a basis for tracing the effect of exterior factors on interior perspectives, attitudes, and intentions. This model has been widely implemented in several industries, including information systems, healthcare, education, and e-commerce, to understand better and explore users’ acceptance of technology.

The Technology Acceptance Model (TAM) is basically discussed as the cornerstone of understanding how users come to accept and subsequently use the technology. It basically boils down to (2) two pivotal factors developed by Fred Davis in 1986, which are Perceived Usefulness and Perceived Ease of Use.

First, Perceived Usefulness (PU) is the degree to which the individual who is using some system believes that they will improve their performance on a specific task. This belief is important because it will directly relate to perceived system benefits, such as overall effectiveness in accomplishing the job or task, productivity, and efficiency. For instance, when the user strongly believes that a system is highly beneficial to their work, they become more positively predisposed towards the implementation of that system into their working lives.

On the other hand, Perceived Ease of Use (PEOU) is discussed as the degree to which an individual perceives that the use of the system has become effortless, which means that the usability of the system’s interface, intuitiveness, and the learning curve associated with its use. The system is easier to navigate and understand and not burdensome to learn and use without having extensive training or frustration, which leads to becoming attractive to the user. The effort given to the system is very limited. When the effort release is minimal in the use of the system, the adaptation will become good since it will not become a hindrance to their work. In short, those systems that are seen as both useful and easy to use are more likely to become easily accepted and consistently utilized, in turn helping technological integration become smoother and enhancing user performance.

The Technology Acceptance Model (TAM) examined the relationships between the three variables, which are the Perceived Ease of Use (PEOU), Perceived Usefulness (PU), and Technology Acceptance (TA). The study concluded that the relationship between PEOU and PU is strong, as well as the relationship between PU and TA. However, the relationship between PEOU and TA appears to be weaker. Therefore, the Perceived Ease of Use (PEOU) will be affected by the Perceived Usefulness (PU), which will then affect the Technology Acceptance (TA) of the end-users (Ma & Liu, 2005). This theory is closely related to artificial intelligence tools and technologies, as end-users must first know its usefulness in order to accept it. Moreover, the perceived ease of use of artificial intelligence tools and technology has a strong impact on their perception of its usefulness. Thus, when they realize its ease of use and usefulness, the end-users will then decide to accept the new technology being offered to them by Artificial Intelligence.

Furthermore, E.M. Roger, also known as Roger, developed one of the oldest and most powerful social science theories, which is the Diffusion of Innovation (DOI) Theory, in 1962; this theory attempts to explain how the idea or product gradually gains speed and spreads through the social system process over time. The theory is based on the core concept of adoption, which is that people within the social system obtain new ideas, behaviors, and products. The adoption is a breaking away from former ways of behavior. The perception of the idea, behavior, or product as new and innovative is the key for diffusion to take place. In contrast, adaptation does not take place simultaneously across the social system; rather, it unfolds as an individual at different times to find a reason to adopt innovations.

Conceptual Framework

The conceptual framework used in the study is the Input-Process-Output (IPO) Model, as shown in Figure 1. The Input-Process-Output (IPO) Model undergoes a series of actions leading up to the final goal of the research.

Figure 1. Conceptual Framework of the Study

Figure 1 presents the conceptual framework of the study. It consists of Input-Process-Output. Demographic Profiles, Artificial Intelligence Tools, Chatbots, Virtual Travel Agents, Tourist Behavior, and Decision-Making are the Inputs. At the same time, Survey Questionnaires, Interview Questions, Statistical Treatment of Data, and Interpretation of Data Analysis are the Processes. Lastly, the recommendations and conclusions are below.

Statement of the Problem

This study aims to assess the influence of Artificial Intelligence (AI) on tourists and how AI-driven tools impact their tourist behavior and decision-making. Specifically, this study seeks to identify the answer to the

following questions:

1. How may the demographic profile of the tourists be described in terms of:
   • Age,
   • Sex,
   • Income Level, and
   • Employment Status?
2. How may the tourists assess Artificial Intelligence provided by the travel agencies in terms:
   • Chatbots, and
   • Virtual Travel Assistants?
3. How may the tourist’s behavior and decision-making in relation to existing artificial intelligence tools provided by travel agencies be described?
4. Is there any significant relationship between tourist behavior and decision-making and artificial intelligence tools provided by travel agencies?
5. How do travel agencies perceive the impact of artificial intelligence on tourist behavior and decision-making?

Significance of the Study

The study aimed to benefit multiple beneficiaries who could utilize the findings and information for specific purposes and gains.

Tourists. The study aimed to benefit the tourists, specifically those who utilized Artificial Intelligence tools. They can benefit from more personalized travel experiences. Artificial Intelligence can come up with customized recommendations for them, helping them to make better decisions.

Travel Agencies. Understanding how artificial intelligence affects tourist behavior enables travel agencies to build services that best suit the wants and aspirations of travelers, which leads to tourist satisfaction and enhanced business effectiveness.

Destination Management Companies. Artificial Intelligence insights would assist destinations in the effective development of targeted marketing strategies and attraction enhancement in order to attract more visitors, thereby increasing tourism in their places.

Travel Operators. Artificial Intelligence will optimize operations and can provide more personalized service to clients and more efficiency in all aspects of their operations. Thus, it could provide high-quality service and experiences.

Local Government. The findings of the study may be used to give information about the policies and policy-making strategies that can develop sustainable tourism practices to ensure the growth and competitiveness of tourism in San Jose Del Monte.

Local Businesses. Knowing the tourist behavior insights and improving on marketing strategies and service delivery to boost local economies and job creation.

Academic Institutions. This study will significantly add to our current knowledge regarding Artificial Intelligence by uncovering new trends and applications of Artificial Intelligence In multiple domains. It would contribute to the implications for industry practitioners and policymakers.

Future Researchers. Future researchers can build on this topic in various ways. Firstly, by exploring the rising impact of newer AI technologies on tourist behavior. As AI advancements sustain, comprehending their incorporation into tourism can contribute a dynamic and current perspective. In addition, this research will serve as a foundation for further complex and specialized studies, navigating innovation and enrichment in the tourism industry.

Scope and Delimitations

This study focuses on assessing how Artificial Intelligence tools, such as chatbots and virtual travel assistants, affect and influence tourists’ behavior and decision-making when booking through travel agencies. The primary subjects of this research study are the tourists who booked a trip through travel agencies and the travel agencies themselves. To begin with, the research analyzes whether a tourist who encounters artificial intelligence during their inquiry phase has their behavior influenced, leading them to decide to book a trip through travel agencies officially. Furthermore, this research also studies the perception of travel agencies regarding the integration of artificial intelligence in their operations and how it would influence their target customer base, which is tourists. Therefore, this research utilizes a mixed-method approach in order to understand the perspectives and views of both travel agencies and tourists regarding artificial intelligence tools, such as chatbots and virtual travel assistants. In addition, the study aims to understand the operational efficiency of artificial intelligence in travel agencies, enhancing customer experiences and its positive influence on their behavior and decision-making, leading to higher customer satisfaction rates. Data will be obtained from participants of five (5) travel agencies that integrated artificial intelligence tools into their operations.

On the other hand, the research will gather data from eighty (80) respondents, who were purposely chosen, with criteria of those who have used artificial intelligence tools in their travel, specifically those who have received assistance from travel agencies. The respondents and participants are Filipino and will be limited only to the City of San Jose Del Monte, Bulacan. The data will be collected using survey questionnaires and interview questions conducted via face-to-face set-ups, which the researchers prepare. There is a need to perform this research for the reason that it is relevant in today’s world. Artificial Intelligence is an emerging technology of the modern era, and there is a need to analyze its usefulness, specifically in the Tourism Industry. The researchers will be able to assess the impact of Artificial Intelligence tools on the tourists’ behaviors and decision-making with the help of these strategies and methods.

Moreover, the study does not cover different Artificial Intelligence tools and technologies such as ChatGPT, Perplexity, Fireflies, Co-Pilot, Grammarly, and other AI tools that are not relevant to the chatbot and virtual travel assistants found in travel agencies are excluded from the research scope. It will not be explored and tackled. Furthermore, the impact of AI on sustainable tourism will not be examined in this study, nor will the contributions and potential drawbacks. It will also not explore how AI affects the environment or the advantages and difficulties it poses for ecological preservation. In addition, the study did not delve into certain ethical concerns that travelers may consider when utilizing artificial intelligence, such as data security and consumer privacy. In today’s evolving technological advancement, AI often gives rise to ethical dilemmas. These concerns, particularly around privacy invasion and the handling of personal data, are becoming increasingly significant for users. While these issues are undeniably important, they fall outside the scope of this study and were therefore not addressed. Nevertheless, these ethical considerations warrant further exploration, and it is suggested that future researchers examine these aspects in greater detail to provide a more comprehensive understanding of AI’s impact on travelers and their ethical concerns. Likewise, this study will need to address how AI may promote and aid in local cultural advancement. This paper is conducted exclusively within the boundaries of San Jose Del Monte, Bulacan, and does not extend to other geographical locations. Consequently, the focus is solely on this specific area, without considering tourist behavior and decision-making in the different regions. Additionally, this research does not examine post-trip behavior and experiences; it strictly addresses actions and decisions leading up to and during the trip. Furthermore, the travelers who enjoy planning their trip individually, without the help of the travel agencies or assistance to the tour operators, who are DIY travelers, are not included among the respondents in this paper.

Definition of Terms:

Age. The length of time in which the tourists or travelers are alive is related to study.

Artificial Intelligence. The ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings. The term is frequently applied to the project of developing systems endowed with the intellectual processes characteristic of humans, such as the ability to reason, discover meaning, generalize, or learn from experience. (Britannica)

Blockchain. Is a digital ledger database whose recorded contents are encrypted into a sequence of blocks and distributed throughout a network of participating computers (nodes).

Chatbots. Computer Programs are designed to have interactive or automated conversations with humans. (Britannica)

Cognitive. of, relating to, being, or involving conscious intellectual activity (such as thinking, reasoning, or remembering)

Gender. In relation to the study, gender aims to classify the travelers or tourists based on how they identify themselves.

Human Intelligence. It is a mental quality that consists of the ability to learn from experience, adapt to new situations, understand and handle abstract concepts, and use knowledge to manipulate one’s environment.

Innovation. the creation of a new way of doing something, whether the enterprise is concrete (e.g., the development of a new product) or abstract (e.g., the development of a new philosophy or theoretical approach to a problem).

Income Level. In this study, the travelers will be identified based on their income level, such as Low Income, Middle Income, and High Income.

Motivation for Travel. In connection to the study, the travelers will be choosing what motivates them in travelers, specifically Leisure, Business, Education, and Health.

Technological Advancement. It is a continuous process of innovation, improvement, and integration of new tools, techniques, and systems to enhance efficiency, productivity, and convenience in various fields.

Tourist Behavior.  Refers to the actions, choices, and preferences demonstrated by individuals or groups when they engage in travel and tourism activities. (LinkedIn)

Tourist Decision-Making. It is the process in which individuals drive factors like income and travel costs.

Technological Advancement. It is a continuous process of innovation, improvement, and integration of new tools, techniques, and systems to enhance efficiency, productivity, and convenience in various fields.

Virtual Reality. An artificial environment is experienced through sensory stimuli (such as sights and sounds) provided by a computer and in which one’s actions partially determine what happens in the environment.

Virtual Travel Assistants. Artificial Intelligence that makes travel and lodging reservations for clients.

REVIEW OF RELATED LITERATURE AND STUDIES  

This chapter presents the relevant literature and studies, as well as the definition of variables.

Artificial Intelligence

Based on the article entitled “The Strategic Use of Artificial Intelligence in the Digital Era: Systematic Literature Review and Future Research Directions” written by Borgers, Laurindo, Spilola, Goncalves, and Mattos in 2021. Artificial intelligence, the altered role of the strategic tool for the organization, and what AI represents put across the fact that the concept of using artificial intelligence is not new; the application of AI throws up its very own level of complexity. This paper is existing literature along this intersection, scouting for connections to be established between AI and business strategies. It further clearly underlines the urgency of organizations to understand the capabilities and challenges of AI since it is increasingly being promoted in competitive business environments. In relation to our study, it is very critical to identify the strategic applications of AI that can shape

tourism dynamics. Particularly relevant in the factors of tourism was understanding the consumer behavior of businesses and service providers.

According to Gidumal (2020) in his article entitled “Impact of Artificial Intelligence in Travel, Tourism, and Hospitality,” artificial intelligence is especially relevant to travel and tourism for a number of reasons. Travelers must decide on several things for their next vacation, including where to go, how to get there, where to stay, and what to do. On the other hand, the variety of locations, modes of transportation, lodging, and activities that are currently offered offer a nearly limitless number of alternatives that call for assistance. Finding a suitable match between clients and travel packages that cater to their requirements is a problem that both tourism businesses and agencies must deal with. Therefore, matching a product to demand is a very complicated process that appears to be well suited to AI’s skills. Tourists must navigate the realm of the unknown once they arrive at their destination, which is marked by a variety of foreign aspects, including different customs, languages, cultural norms, and cuisine.

Furthermore, AI can assist travelers in these strange situations by, for instance, suggesting a route or assisting with linguistic and cultural obstacles. Additionally, AI can assist enterprises in customizing experiences to meet the preferences of travelers. In relation to our research, AI has changed and is changing the main processes in the travel and tourism industry, including tourist behavior. Artificial intelligence will significantly impact on the satisfaction and behavior of tourists during their journey.

Based on the article by the Philippine Real Estate News Curator (2023) entitled “Philippine Tourism Industry Remains Resilient Against AI Impact,” artificial intelligence has an impact on the tourism industry. Those are minimal and adverse in the field of medicine and education, and now, in the tourism industry, the article holds that the human touch of care and interaction still has an impact on tourism, especially for us Filipinos. The Department of Tourism states that the confidence that every Filipino shows is a representation of resiliency and how priceless Filipino workers are. The point they make while rising above the AI’s prominence regarding the “economy of care” they called. It reminds us of that human connection still matters the most, especially in terms of culinary. However, we cannot deny that artificial intelligence, like chatbots and virtual assistants, has a positive effect on our lives. In connection to our study, artificial intelligence is significant in shaping tourist behavior and decision-making in the Philippines, as well as understanding the significance of chatbots in the tourism industry.

Tamara Gajic et al., 2024 in their study entitled “Tourists’ Willingness to Adopt AI in Hospitality—Assumption of Sustainability in Developing Countries,” investigate the relationship between artificial intelligence and customer behavior in the Iranian Industry. The survey was conducted to assess the impact of AI technologies on the category of customers and their willingness to use AI techniques. They found in the survey they conducted that AI information and system quality influence customers’ perception, and it leads to engagement and a willingness to use artificial intelligence. This study also emphasizes the good quality of AI and accurate information, which leads to customers trusting and relying on AI. In relation to our research, the terms of providing assessment in the acceptance and adaptation of Artificial Intelligence by examining local tourist perceptions and behavior towards AI can gain insight into their willingness to engage with AI-powered services or Virtual assistance and chatbots.

In the study entitled “Exploring Challenges and Opportunities: Evaluating the Awareness and Readiness of Selected Government Agencies in Adopting Artificial Intelligence (AI)” by Campued, Papa, De Castro, & Malang (2023), the authors undertake a comprehensive examination of the respondents regarding their awareness, skills, attitude, and readiness for adopting Artificial Intelligence (AI) applications in professional settings. It evaluates respondents’ familiarity with AI tools, their perception of their level of proficiency, and their overall attitudes toward AI integration. Moreover, the authors also discussed other potential challenges and reservations regarding incorporating AI in their professional work. The study concluded with a positive response from the respondents about artificial intelligence and its incorporation into their professional work. The respondents showed their readiness for AI integration in their workplace, specifically the employees of selected government agencies. In addition, Campued et al. (2023) stated that the Philippine government must conduct activities to increase awareness and readiness among the people to adopt Artificial Intelligence in the government workplace. The significance of this study to our research is that we aimed to explore whether the travel agencies in the City of San Jose Del Monte, Bulacan, are already incorporating Artificial Intelligence in their workplace, specifically AI-powered chatbots and AI travel assistants. Our study also aimed to understand the incorporation of AI tools and technologies and their effect on tourist behavior and decision-making.

In the article entitled “Travel and Middle Class” by Garcia (2022), Garcia stated that the integration of AI in tourism has the potential to impact tourist behavior significantly. AI-powered systems can evaluate enormous amounts of data to provide tailored recommendations, improve the experience of tourists via interactive guides, and streamline booking processes. These developments not only increase convenience for the lower middle class but also give them a chance to discover new places and things to do that fit their interests and financial limitations. In relation to our study, AI might improve travel by offering individualized and reasonably priced solutions, which will be especially advantageous for the lower middle class.

Chatbots

Dukic (2024), in the article entitled “AI Chatbots in Travel and Tourism: Enhancing the Traveler Experience,” explains that artificial intelligence has made a significant impact in the travel and tourism industry, one of which is the development of AI-powered chatbots. Dukic (2024) stated that AI Chatbots run 24/7, providing customer service and support to travelers, as well as answering queries and resolving issues. Furthermore, they provide travelers with personalized suggestions about different destinations, accommodations, and travel activities that are tailored to travelers’ individual preferences. Lastly, AI chatbots guide users in their booking process, from date selection to booking confirmation. They also provide travelers with updates about pricing changes and date availability, which assists travelers in their decision-making.

Adel (2023) stated that with the booming of Artificial Intelligence tools, many Filipino travelers are making their travel plans with the help of AI-powered chatbots. They said in their news article that they asked several Filipino travelers about their experiences in using AI-powered chatbots, and most of them mentioned how these chatbots provide them with travel recommendations, help them in their booking, assist in weather forecasting, and aid them with creating travel itineraries. The Filipino travelers that Adel (2023) interviewed said that they will continuously use the AI-powered chatbots for their future travel plans, and they will also recommend these chatbots to their friends and families as they can serve as their reference guide, providing them with good suggestions for traveling. The relevance of this to our study is that Artificial Intelligence tools and technologies, specifically chatbots, will increase the likelihood of travelers booking a trip and using these chatbots during their travel.

In the research study entitled “Trust in the chatbot: A semi-human relationship” by Ltifi (2023), the aim was to test the social and emotional aspects of the interaction of humans with text chatbots. The study focused mainly on the hedonic attributes of consumer trust, specifically empathy, friendliness, and usability of text chatbots. The analysis yielded different conclusions, starting with text chatbots’ levels of friendliness and empathy positively impacting the degree of users’ confidence and trust in chatbots. Moreover, the usability of text chatbots is an important factor, as it positively influences users’ trust in chatbots. However, task difficulty has a negative moderate effect on the relationship between usability and customers’ trust in chatbots. In that sense, when the task is difficult, customers are more interested in the abilities of chatbots to solve these tasks rather than their level of empathy, friendliness, and usability (Ltifi, 2023). In relation to our study, AI-based chatbots can affect tourist behavior and decision-making, where their level of empathy, friendliness, and usability, as well as their capability to solve problems, will affect the decision-making of travelers regarding whether or not to book with a travel agency.

The study “Using Virtual Assistants as Relationship Marketing Instruments” by Cuza (2022) demonstrated that human beings can develop emotional reactions and feelings such as empathy and friendliness towards robots. This study also showcases the motivational factors that drive people to make use of chatbots. These factors can be divided into four categories: Productivity, Entertainment, Social Purposes, and Novelty. According to the majority of the respondents (68%) to their poll, productivity is the primary cause for utilizing chatbots; it includes the need for quick responses, accessibility, and task simplicity. Entertainment was ranked second (20%) due to the perception that chatbots are humorous and fun. (12%) Twelve percent of interviewees cited social purposes as their motivation for using chatbots to communicate with “someone” at times of loneliness. Lastly, the novelty factor. Chatbots are a relatively new concept, which is why ten percent (10%) of people give them a tryout of interest. In addition, the findings of this study demonstrate that while knowledge of user satisfaction with information chatbots may not ensure devoted clients, they do contribute to better relationship quality, which in turn boosts client loyalty. Chatbots mark a starting point for reaching a natural language between a machine and a human being with the help of all the algorithms that were used in their development and that today, the most advanced robots have. Associating with our study, the study’s conclusions provide evidence that chatbots can influence travelers’ decisions, particularly by enabling natural language communication between humans and machines, which will boost customer loyalty to travel agencies.

The study conducted by Mindajao (2023) entitled “Effectiveness of Chatbot as an Innovative Modality in Grade Reporting in the New Normal” evaluated the effectiveness of Project E-PM Mo Grade R Chatbot, which was made using Dialog Flow, Google Sheets, Google API, and Facebook Messenger. Their study stated that there has been an increased desire for innovations that can help deliver the processes of participating in teaching and learning most conveniently, and their possible solution is generating and utilizing chatbots that replicate conversations with humans and execute basic tasks using AI. This study mentioned that chatbots have shown progress in completing tasks such as offering directions and responding to often requested queries. The findings of the study demonstrated that the application of Project E-PM Mo Grade R Chatbot is effective in improving grade reporting in the new normal, and this unseals new ideas, pathways, and opportunities for improving ways of sending grades. In relation to our study, chatbots can provide knowledge and data that is required not only in education but also in tourism. It is effective in the areas of grade reporting, so it is also useful in the travel agency in terms of delivering itineraries, rates, and other travel information to tourists more conveniently, which affects their decision-making and behaviors.

The study entitled “Airline Chatbots as Communication Tool Towards Consumer Satisfaction on Pre-flight Assistance Services” by Garcia, Landicho, Magbalita, Maligaya, Vertucio, Gamoso, & Peralta (2023) examined how Airline Chatbots assist travelers during their Pre-Flight concerns, as well as how it increases consumer satisfaction. Their study also determined how airline chatbots, as a communication tool, affect automatability, personalization, limited understanding, lack of emotion, and null decision-making. They also explored how these airline chatbots increase the pre-flight assistance services in terms of credibility, availability, relevance of information, convenience, and accessibility and how they affect consumer satisfaction. The study found that the majority of respondents are satisfied with the services that the airline chatbots provide. The travelers are happy with how quickly these chatbots respond to their queries. They also stated that the airline chatbots provide personalization during their conversation. Moreover, their study implied that airline chatbots have a positive impact on consumer satisfaction during their pre-flight assistance services, as these chatbots provide credible information that directly answers their queries and helps them plan their trip. This can be applied and utilized in our study, as travel agencies need to ensure that their chatbots assist travelers when they are planning their trips. Thus, this will increase the likelihood of travelers booking from a travel agency that uses chatbots.

These results can also be supported by the study of Duc (2024), which was titled “Building a travel booking website with AI support for tourists.” The study emphasizes the need for travel agencies to incorporate artificial intelligence tools such as chatbots into their online platforms and websites. Travelers increasingly seek personalized experiences that AI can offer. Firstly, AI can provide travelers with customized recommendations by analyzing their data and suggesting individually tailored travel options that meet their needs. Furthermore, artificial intelligence influences tourists’ decision-making by providing travelers with a sense of convenience. Artificial intelligence enhances convenience by simplifying each step, from searching and filtering options to making payments and managing itineraries. This ease of use reduces the hassle for travelers and further encourages them to proceed with their bookings.

Virtual Travel Assistants

As stated in the article “Chatbots vs. AI Chatbots vs. Virtual Assistants” by Darwish (2024), in the field of artificial intelligence chatbot software, virtual assistant portrays an expansive and progressive advancement. These agents implement deep learning algorithms to improve their performance over time and conversational AI approaches to having conversations. Furthermore, virtual assistants often incorporate robotic process automation (RPA) into a single interface, allowing them to react directly to user intents without the need for extra human intervention. Virtual assistants enhance the user experience by furnishing simple answers to questions as well as offering practical advice and suggestions. Virtual assistants’ ability to not only convey information but also anticipate and address the needs of the user leads to more efficient planning and convenience. In relation to our study, the integration of AI and Virtual Assistants into the tourism industry is reshaping how tourists plan and experience their journeys. As acceptance of AI continues to rise among travelers, its role in shaping tourist behavior will likely expand even further.

Perry (2024) states in their article entitled “The Rise of AI Travel Assistants” that AI travel assistants are capable of planning trips and booking travel, as well as providing travelers with personalized recommendations, overviews of the destination, and real-time assistance while they are traveling. According to Perry (2024), Artificial Intelligence is recreating the world with endless possibilities. The tourism industry has been affected by these recent developments. Consequently, many companies in the tourism industry are putting AI to good use. For instance, various travel companies have launched their own AI travel assistants, each offering personalized travel suggestions based on the interests of their users. Similarly, Marriott’s Renaissance hotels have released RENAI, which is an AI-powered virtual concierge, or simply an AI travel assistant, that recommends restaurants, bars, tours, and activities to their guests. Perry (2024) also discusses the downside and challenges of using AI travel assistants, noting that they tend to struggle with providing answers to complex requests and can be prone to producing nonsensical, irrelevant, and incorrect responses. The relevance of this article to our study is that it tackles and discusses the meaning and usage of Artificial Intelligence, as well as its incorporation into travel assistants, which, in turn, can affect travel behavior and decision-making.

According to Chen, Xuyang, Ziquan, Yanghua, & Jiangjie (2024), in their research entitled “TravelAgent: An AI Assistant for Personalized Travel Planning,” there are AI-based travel agents, specifically large language models (LLMs), which work and feature four distinct modules. These modules are the tool usage, Recommendation, Planning, and Memory Modules. The tool-usage module integrates utilities from real-time dynamic data resources. The recommendation module delivers personalized travel recommendations to travelers, tailored to the individual preferences of tourists. The third module is the planning module, which is about helping travelers plan their detailed travel route, time, and budget. Lastly, the memory module continually learns user preferences and notes this information in order to utilize it in the future. The significance of this study in our study is that it helps to discuss further how AI travel assistants work.

The research study entitled “Perceived Intelligence of Artificially Intelligent Assistants for Travel: Scale Development and Validation” by Ling, Tussyadiah, Liu, & Steinmetz (2023) explores the perceived intelligence scale for artificial intelligence (AI) assistants and its impact on users’ behavioral intentions for traveling. First, this study defines conversational intelligence as the level of capabilities of AI assistants to understand the natural language inputs of users and conduct a smooth conversation with them in a natural, proactive, and timely manner. Second, this study tackles information quality, which concerns the information/recommendation given by AI assistants that the users perceive as useful, effective, and meeting their overall needs. Therefore, AI assistants with strong conversational intelligence and information quality will provide travelers with local recommendations, language support, itinerary planning, and real-time assistance, as well as information that is individually tailored to the needs of travelers. Lastly, anthropomorphism was also a key feature of AI assistants, which must appear human-like while interacting with users in order to increase their perceived intelligence. Thus, when AI assistants demonstrate their capabilities to respond to emotions, as well as to understand and react to the individual needs of users, this will lead to an increased perception of intelligence by users, which eventually leads to their intent to book a trip. This can be applied and utilized in our study, as travel service providers, such as online travel agencies, hotels, airlines, and tourism attractions, need to ensure that their AI travel assistants provide reliable, up-to-date, relevant, accurate, sufficient, and individually tailored information to travelers. When AI travel assistants possess these traits, they will significantly influence travelers’ intentions to search for travel information and their decision-making process for their travels, and they will increase their intention to book with these travel service providers.

The study entitled “Virtual Assistant for Local Government Units Using BERT-Based Natural Language Processing” by Casas, Villafuerte, & Paragas (2024) proposes the incorporation of virtual assistants into the public service delivery of Local Government Units (LGU) and automate the handling of common citizen inquiries and enhance the efficiency of service delivery. The study found that virtual assistants have a high level of usability, efficiency, maintainability, portability, ease of use, and operational effectiveness, which can be beneficial for increasing citizen satisfaction with the public service delivery of Local Government Units. This is relevant to our study, as the incorporation of AI travel assistants in the delivery service of travel agencies can increase the satisfaction of travelers, which, in turn, leads to their decision to book a trip.

Tourist Behavior and Decision-Making

Gkikas and Theodoridis (2022) state in their article entitled “AI in Consumer Behavior” that consumers undergo various stages for their decision-making journey, which includes exposure to triggers, exploration, evaluation, and purchase decisions. The first stage, exposure to triggers, refers to the strategies for reaching target customers or clients, particularly with the help of marketing and advertising strategies. Secondly, the exploration stage involves consumers seeking information from various sources to help them decide what to purchase. The third stage is the evaluation, which involves consumers weighing up all the possible options. Lastly, the purchase decision stage is the final stage, where the consumers decide to purchase an item. In relation to our study, tourist behavior will also undergo these stages, where they will be exposed to various triggers, such as advertisements about a travel destination from different travel agencies. Moreover, they will also explore online resources, such as social media platforms and search engines (e.g., Google Search), to evaluate tourist attractions. Afterward, they will reach a final decision on whether to book with a travel agency or not.

The study by Guangming Cao et al. (2021) entitled “Understanding Managers’ Attitudes and behavioral intentions towards using artificial intelligence for organizational decision-making” the paper is about forces driving attitudes and intentions to accept artificial intelligence in organizational decision-making. The research demonstrates how AI facilitates conditions, alleviates personal concerns, and impacts decision-making. In relation to the study, it effectively enhances the tourist decision-making process within the local sector by providing data-driven insight.

According to Kennedy (2023), in the paper entitled “The Human Touch: Why AI Will not Replace Travel Agents for Family Vacations.” The personalized service, expert knowledge, and emotional support that travel agents offer to surpass the abilities of AI in managing complex itineraries and unforeseen circumstances. The value of human interaction and flexibility, essential for a successful family vacation, is highlighted. The article concludes by advocating the advantages of using a travel agency to guarantee a memorable and stress-free experience. It is supplemented with related content and community discussions on travel planning. In relation to our study, both studies assess human interaction in AI.

The article written by Stylos (2019) entitled Technological Evolution and Tourist Decision-making: A Perspective Article. It delves into the transformative role of technological advancements, especially artificial intelligence, in shaping tourist decision-making processes. It critically assesses existing theoretical frameworks, highlighting their inadequacy in explaining the complex interaction between humans and tourists and AI-driven tools. The paper introduces a novel framework that positions tourists and AI-driven tools. The paper also introduces a novel framework. This framework considers the influence of technologies such as virtual and augmented reality and the growing prevalence of AI-powered agents like chatbots and recommendation systems on tourism, which will increasingly depend on AI for travel planning and execution, potentially shifting decision-making from individual discretion to collective intelligence system. Ultimately, the article advocates for a paradigm shift in tourism decision-making theory to acknowledge the symbiotic relationship between humans and AI.  In relation to the study, tourists’ decision-making, technological advancements like chatbots and virtual assistance have a big help in making a decision.

The study from Oliver Wyman Survey, written by Hornick et al. (2023), reveals high satisfaction rates among travelers using AI-powered travel planning tools and a notable reference for booking platforms that incorporate this technology. The report highlights that elite loyalty members and cruises are more likely to adopt these tools, which have significant implications for online travel agencies (OTAS) and travel suppliers. Importantly, the study predicts substantial economic changes depending on the extent of AI adoption by travel suppliers, stressing the necessity for proactive AI strategies to maintain profitability. It concludes that swift AI adaptation is crucial for the future success of travel companies. In relation to the study, they both explore the effects of AI on tourist behavior and decision-making.

The article “Travel Advisors Embrace A.I.” was written by Urken (2022). Explores AI’s impact on the travel advisory industry, addressing job displacement fears by highlighting AI’s role in enhancing, not replacing, human expertise. AI automates routine tasks, allowing advisors to focus on personalized services and complex planning. While travelers use AI for trip planning, the article undercovers the continued need for human advisors’ experience and empathy. It concludes that AI adoption is crucial for the future success of travel advisors. In relation to our study, both explore the role of AI in improving the decision-making process.\

The study written by Dr. Kunal Gaurav et al. (2019) titled “Factors Influencing Customer Satisfaction at Tours and Travel Agencies in India” explores customer satisfaction within India’s travel and tourism industry, particularly focusing on travel agencies. It defines customer satisfaction as the positive or negative feelings that result from comparing a product or service’s performance against expectations. The research concludes that customers should improve Customer Service, Customer Centricity, Service Quality, and Customer Convenience to sustain and boost customer satisfaction. In relation to the study, both studies underline the necessity of improving customer experiences- one through traditional service improvements and the other through AI-driven enhancements. Ongoing need for adaptation and innovation to meet evolving customer expectations in the travel and tourism industry.

Synthesis and Relevance to the Study

Synthesizing these studies reveals that AI provides significant benefits in improving people’s experiences and enhancing behavior and decision-making processes through chatbots and virtual assistants. Chatbots offer prompt responses and solutions to people’s inquiries and concerns. They also facilitate real-time assistance by providing immediate support and suggestions that are personalized based on the behavior of the individual (Perry, 2024; Ling et al., 2023). Moreover, virtual assistants provide users with reliable, up-to-date, accurate, sufficient, and individually tailored information (Ling et al., 2023). Therefore, when both AI-powered chatbots and virtual assistants possess these traits, they significantly influence the decision-making and behavior of an individual, which undergoes various stages, such as exposure to triggers, exploration, evaluation, and purchase decision (Gkikas, 2022). These literature and studies have proven that artificial intelligence improves efficiency and engagement and has an impact on the decision-making process and behavior of individuals in several industries or sectors.

In this study, we aim to distill findings from various sources. One of these is the understanding of the current or the real stance of Artificial Intelligence in the Tourism Sector in terms of their acceptance and adaptation. Additionally, we analyze Artificial Intelligence tools, such as chatbots and virtual assistants, and their overall influence on personalized recommendations and customer service based on virtual conversations (Dukic, 2024). It is noted that chatbots provide credible information that directly answers queries (Tamara Gajic et al, 2024). Moreover, virtual assistants mimic human-to-human conversation, providing more personalized customer service (Adam et al., 2020). Thus, this literature and studies will serve as proof that both Artificial Intelligence tools, i.e., chatbots and virtual assistants, will affect the decision-making and behavior of their users.

METHODS OF RESEARCH

This chapter presents the research procedure that will be utilized in the study. It focuses on the employed methodology to determine the effects of artificial intelligence, specifically chatbots and virtual travel assistance, on tourist behavior and decision-making in San Jose Del Monte, Bulacan.  The researchers outline the research design, population and sample study, sampling design, research instrument, data gathering procedures, ethical consideration, and data analysis. Conclusively, this chapter guides replicating the research and contributes to a deeper understanding of AI’s role in shaping tourism experiences.

Research Design

The researcher chose a mixed method approach since it is the most effective way to gather the data necessary for the study. This methodology is a combination of qualitative and quantitative research. In particular, the mixed method design facilitates the dual view, as it can provide statistical evidence of artificial intelligence in the view of tourists while the insight of travel agencies about the integration of artificial intelligence and how it affects tourist decisions, which can be revealed through qualitative. By using this approach, The researchers aim to collect insight from both travel agencies and tourists in the city of San Jose Del Monte, Bulacan. Our goal is to assess how artificial intelligence affects tourist behavior and decision-making among these groups.

Population and Sample of the Study

The overall population of the study contains two groups, which are travel agencies and tourists. The travel agencies include all the travel agencies in the City of San Jose Del Monte, Bulacan, which can be seen below.

Table 1. Accredited Travel Agencies in San Jose Del Monte, Bulacan

On the other hand, the overall population of tourists or travelers is still being determined. Therefore, the researchers adhered to the criteria: Filipino tourists or travelers who inquired and booked through travel agencies living in the City of San Jose Del Monte, Bulacan, who have experienced utilizing Artificial Intelligence in their travel booking, specifically chatbots and virtual travel assistants.

To be more specific, the sample for this study consists of registered and accredited travel agencies operating in the city of San Jose Del Monte, Bulacan, and tourists who inquired or booked through these travel agencies. Furthermore, the estimated sample size of this study is a maximum of eighty (80) tourists and four (4) travel agencies, who will act as representatives of the overall population. The purpose is to understand their operations, how they connect with customers, and the effects of artificial intelligence on the decisions they have made. Moreover, tourists include all those who utilize the services offered by the travel agencies from San Jose Del Monte City, Bulacan.

Sampling Design

The researchers will utilize a non-probability sampling technique, specifically a purposive sampling method. The purposive sampling method is a technique in which individuals are chosen based on their particular traits, expertise, or experiences. Thus, the researchers will select eighty (80) who will act as respondents to the study. They will be using these specific criteria, such as Filipino tourists or travelers who involve themselves with travel agencies, those who are residing in the City of San Jose Del Monte, Bulacan, and lastly, those who have experienced utilizing Artificial Intelligence in their travel booking, specifically chatbots and virtual travel assistants. The purposive selection of respondents and participants allows the researcher to focus on specific groups that are directly relevant to the research question. This targeted approach will enable a more detailed examination of the role of Artificial Intelligence in the tourism industry and its implications for user behavior.

In addition to individual respondents, the study will also include participants from travel agencies within the City of San Jose Del Monte, Bulacan. Using the same purposive sampling method, the researchers will carefully select four (4) travel agencies that may have integrated or planned to integrate AI-powered tools such as chatbots and virtual assistants into their operations. By involving these agencies, the study aims to explore the extent of AI adoption in the local tourism sector and its impact on tourist behavior and decision-making processes. The inclusion of travel agencies as participants will provide a more comprehensive understanding of how AI tools influence both businesses and travelers.

Research Instrument

This study utilized two research instruments since it has a mixed methodology. The researchers used questionnaires to survey travelers who inquired and booked through travel agencies to find out how AI-powered chatbots and AI-virtual travel assistants affected their experiences and decision-making. The set of questionnaires was validated by Dr. Nelidiza R. Arceta, the Program Chair of the HTM Department, and Mr. Mark Christian O. Aringo, Faculty of BindTech Department, consisting of (20) twenty items and went through reliability testing. The respondents answered these questions using the following 5-point Likert scale in which respondents specify their level of agreement with the statement: (5) Strongly Agree; (4) Agree; (3) Neutral; (2) Disagree; (1) Strongly Disagree.

The researchers also utilized Interview Questions for travel agencies to determine their perspective on how AI-powered chatbots and AI-virtual travel assistants influence and affect their customer relationship management. The interview is semi-structured with a series of open-ended questions. It follows them with probe questions to delve deeper into their answer and the subject matter with a set of general topics that must be addressed, consisting of (6) open-ended questions. The researchers generate the interview questions to ensure that all of the question areas are addressed. Furthermore, pen, paper, and voice recorders were employed to take detailed notes on the respondents’ answers.

Data Gathering Procedures

To gather all the data necessary to complete the study, the researchers must undergo the following processes to effectively perform the research and gather the information needed to generate their conclusions. To obtain a list of travel agencies, the researchers constructed a letter of approval, a research agreement, and an arta agreement. This letter will be submitted to the city tourism office of San Jose Del Monte, Bulacan, through face-to-face and email, as well as the data requested by the researchers. After collecting the data needed, the researchers selected four travel agencies for an interview and 80 travelers who inquired and booked through travel agencies.

In collecting data, the researchers will collect certain information during respondents’ free time to prevent misunderstandings and disagreements. They will ask the respondents and participants for permission to conduct their research and will present them with an informed consent form to sign. The researchers conducted the data gathering in San Jose Del Monte, Bulacan, through face-to-face interaction, and they explained to the respondents and participants the significance of their responses or answers to the study. The researchers clarified some terms to the respondents in order to answer the questions with full background and knowledge and assure them that their personal information would be kept confidential. The researchers requested the respondents and participants to answer with complete honesty. The respondents will complete the survey questionnaires in the minute they can answer the questions, while each participant will answer the interview questions for approximately 20 minutes. After the respondents and participants had responded to the questions, the researchers gathered and tallied the data for interpretation and analysis. Lastly, researchers critically calculated, reviewed and interpreted the data to generate solutions to the study’s problems.

Ethical Considerations

In conducting this study, the researchers will observe ethical considerations throughout the process in order to prevent harm to the respondents and participants. Before the survey could be approved, any contact with the respondents and participants must be explained. Before conducting the actual survey questions and interviews, the respondents and participants will undergo a debriefing to make sure that they have received information about the study and its purpose. Moreover, the researchers will consider the voluntary nature of the study, in which the respondents and participants are free to accept or turn down the invitation. Through informed consent, the participants and respondents shall willingly decide to take part in the study. To ensure that all of the individuals who participate in this study have complete protection of their privacy, all information will be held with utmost confidentiality. No names will be individually collected, and they will remain anonymous in accordance with Republic Act 10173, generally known as the Data Privacy Act. Furthermore, apart from preventing harm to the respondents and participants, the researchers will ensure that the results of the study are protected from potential bias. They will make sure that the data collected was not generated and designed in a way that was appealing to those who were studied.

Data Analysis

Statistical tools such as the weighted mean, standard deviation, frequency and percentage distribution, and Spearman’s Rank Correlation will be used for the primary data analysis portion of the quantitative study. The 5-point Likert scale will be analyzed by synthesizing the mean of each sub-variable (as seen in the first statement of the problem), which will be compared to ranges, each with a corresponding stance: Strongly Agree, Agree, Disagree, and Strongly Disagree. The sub-variables will be placed within the range where their mean was located within.

The following statistical procedures will be applied to the data that this study gathers:

Frequency and Percentage Distribution. The researchers used frequency and percentage distribution as one of the statistical tools to classify the respondents according to their demographic profiles, such as age, sex, income level, and employment status. The following formula will be used in this technique to determine the respondents’ demographic profile:

Formula:

Weighted Mean. The researchers employed a weighted mean in the study to calculate the relative importance of each value in the data set.

Sample Standard Deviation. The researchers employed sample standard deviation in the study since the population is considered unknown. This technique can be used to determine how concentrated or scattered the respondents’ answers were in the average. The following formula will be used to assess the consistency of the responses:

Spearman’s Rank Correlation. A nonparametric measure only requires a monotonic relationship, meaning that it does not rely on any assumptions about the data distribution. This will be helpful in identifying the predictive relationships between the two variables. The following formula will be used:

Furthermore, a thematic analysis will be used in the qualitative portion of the study to focus on understanding the meaning of the themes and patterns that the participants identify regarding how artificial intelligence tools affect their behavior and decision-making. The data obtained from the interviews will later be transcribed into coded data and collated to create an orderly response dataset. In addition, the researchers will also utilize a data matrix, specifically the profile matrix, to analyze, interpret, and measure the variables and identify the themes and patterns of the data obtained from each interview participant. The data collected will then be presented through an organized and collated code and specified into themes and subthemes to help the researchers understand and verify the meaning of common themes and subthemes of the data obtained.

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter presents all the results of the data-gathering procedures, including their corresponding results, analysis, discussion, and interpretation of the results depicted from the objectives stated in Chapter 1. The existing literature and studies support these.

Using a mixed-method research design, the researchers initially surveyed tourists who inquired and booked through travel agencies. Additionally, the researchers executed an in-depth interview with selected travel agencies in San Jose Del Monte City, Bulacan. The incorporation of artificial intelligence into the operations of these travel agencies paved the way for the researchers to examine its effects on tourists’ booking behavior and decision-making from the view of both the travel agencies and tourists.

With that, the researchers displayed figures and tabular forms to visualize and show the results in the quantitative part of the research, which answers the statement of the problems one (1), two (2), and four (4).

Tourist’s Profile       

The first part of the result deals with the assessment of the demographic profile of the tourists who have already utilized various artificial intelligence (AI) on their travels. Researchers used descriptive statistics such as frequency and percentage to assess the responses on age group, sex, income level, and employment status.

Table 2. Distribution of Tourist’s Profile

The above table shows the demographic profile of the tourists, such as age group, sex, income level, and employment status. First, the results in the age group ranging from 18 to 25 rank first with a percentage of 61.3%. Followed by the group of tourists whose ages are ranging from 41 and above with a percentage of 13.8%. In the third rank, there was a tie between the tourists with the age range of 26-33 and 33-40, having a percentage of 12.5%. Second, the results in sex have revealed that female tourists dominate the demographic with a percentage of 70%, over male tourists with a percentage of 30%. Third, the income level results showcased that Lower Middle Income (PHP 21,194 to PHP 43,828) earners had the highest percentage, 62.5%, followed by the Middle Class (PHP 43,828 and PHP 76,669) group with a percentage of 23.8%. Ranking third is the Upper Middle Income (PHP 76,669 and PHP 131,484), revealing a percentage of 11.3%. The fourth rank is a tie between high-income (PHP 131,484 and PHP 219,140) and Rich (PHP 219,140 and up) with a percentage of 1.3%. Lastly, employment status shows that Unemployed tourists have the highest number of percentages, 48.8%. Following this, Employed Full-Time tourists make up 30% of the respondents. Self-employed individuals hold the third position in the ranking, accounting for 11.3%. Lastly, Employed Part-Time tourists are at the bottom of the ranking list, comprising 10% of the respondents.

This finding is validated by the study of Garcia et al.  (2023) entitled “Airline Chatbots as Communication Tool Towards Consumer Satisfaction on Pre-flight Assistance Services.” The study indicated that 18-25-year-olds are part of the generation called GEN Z, which is the one that effectively utilizes AI for pre-travel planning assistance when traveling. This generation is currently engaged in the trend of using online or in technological aspects. Furthermore, this study also revealed that most females are recognized as users of online assistance when it comes to traveling. Compared to males, women are more daring when traveling than men, seeking out unusual and new places to go. This study also discovered that there were notable differences over time in the choices of men and women tourists. Women were shown to be more brand loyal than males and to be the primary decision-makers when it came to travel. Thus, this indicates that women are dedicated to obtaining the information that essentially fulfills the fundamental requirements for carrying out a meticulously planned trip.

Moreover, the lower middle class led in terms of income level. This finding is substantiated by the article entitled “Travel and the Middle Class” by Garcia (2022). This study stated that AI is becoming more and more popular with lower middle-class travelers since it is accessible and affordable. AI technologies make travel more practical in the face of inflation and growing costs by providing cost-effective trip planning options like pricing comparisons and customized itineraries. Besides, as conventional travel services get more costly, AI offers affordable substitutes that assist this group in overcoming obstacles to travel, like pricey airfare and a lack of available transit. This pattern is part of a larger trend where AI makes travel resources more accessible to people with constrained budgets.

In addition, in the context of employment status, unemployed tourists take the spot of first in rank as primary users of AI when traveling. These groups of unemployed tourists comprise a diverse range of individuals, including students, housewives, and retired professionals. Each of these groups brings unique perspectives and experiences to their travels, enriching their journeys with varied backgrounds and interests.

Tourist’s Assessment of Artificial Intelligence Used in Travel

The second part of the result deals with the assessment of tourists’ perspectives relative to the emerging artificial intelligence used in travel, such as chatbots and virtual travel assistants. Researchers present the data in a tabular using weighted mean and standard deviation.

Table 3. Chatbots

Table 3 shows the tourists’ perspectives relative to their experience with the existing technological services provided by travel agencies such as Chatbots. Based on the above result, most tourists agree that chatbots greatly contribute to travel agencies ensuring good quality travel services (Mean=3.99, SD=0.6895). Specifically, researchers noted that most tourists considered chatbots are easy to use for travel-related inquiries (Mean=4.07, SD=0.7946), make booking travel services more convenient (Mean=4.04, SD=0.8278), enhance travel planning process (Mean=4.01, SD=0.7177), it provides timely and accurate information (Mean=3.91, SD=0.7926). It improves the overall travel experience of tourists (Mean=3.92, SD=0.8725).

These results are supported by the study entitled “Airline Chatbots as Communication Tool Towards Consumer Satisfaction on Pre-flight Assistance Services” by Garcia, et. al (2023). Their study yielded results indicating that chatbots have an easy conversational pattern and can give travelers ease while accessing and getting information for their travels. Therefore, travelers see chatbots as easy and accessible to use for their flight-related and travel-related inquiries.

Table 4. Virtual Travel Assistants

The next parameter in assessing the tourists’ perspective relative to the existing technological services provided by travel agencies deals with virtual travel assistants. The result shows that most of the tourists agree that the virtual travel assistance provided by the travel agencies greatly contributes to and helps them in planning and arranging their travels (Mean=4.05, SD=0.6913). Specifically, it was noted that tourists improved the level of their satisfaction related to the travel services of these agencies due to the provision of virtual travel assistance (Mean=4.16, SD=0.7483). Relatedly, the emergence of virtual travel assistance also enhances the overall travel experience of the tourists (Mean=4.10, SD=0.7454), and they have trust in the information being provided by this platform (Mean=4.08, SD=0.7061). Lastly, tourists can rely on virtual travel assistants for real-time travel updates (Mean=3.93, SD=0.8319), and they understand their travel preferences well (Mean=3.98, SD=0.8874).

These data are supported by the study entitled “Perceived Intelligence of Artificially Intelligent Assistants for Travel: Scale Development and Validation” by Ling, Tussyadiah, Liu, & Steinmetz (2023); it explored the capabilities of virtual travel assistants, yielding a result that this AI tool possessing a strong conversational intelligence and information quality will provide travelers with local recommendations, language support, itinerary planning, and real-time assistance, as well as information that is individually tailored to the needs of travelers. These will eventually lead to the intent of tourists to book a trip through travel agencies that integrate this AI tool.

Tourist’s Behavior and Decision-Making

The second part of the result deals with the assessment of tourists relative to their behavior and decision-making with the emergence of technologies such as AI. Researchers present the data in a tabular using weighted mean and standard deviation.

Table 5. Tourist’s Behavior and Decision-Making

Table 5 shows the assessment of tourists’ behavior and decision-making regarding travel relative to the emerging AI technologies provided by travel agencies. Based on the result, most of the tourists agree that the emerging use of AI technologies for the services of travel agencies greatly contributes to their travel decision-making as well as to their overall experience (Mean=3.94, SD=0.7223). Specifically, researchers noted that most tourists strongly agreed that the use of AI tools helps them to discover new travel suggestions (Mean=4.24, SD=0.7670). In addition, utilizing such tools helps tourists find the best deals on travel services (Mean=4.06, SD=0.7762), which influences their choice of travel destinations (Mean=4.00, SD=0.8876).

Based on the results from the qualitative part of the study, according to the view of selected travel agencies in San Jose Del Monte City, Bulacan, artificial intelligence tools enhance overall tourists’ behavior and decision-making. It yielded a theme, “Enhanced travel decisions through AI-driven suggestions.” Some travel agencies stated that artificial intelligence will provide tourists with various travel suggestions and give them multiple options to choose from. Hence, travelers will most likely rely on these artificial intelligence tools for their travel choices and booking decisions. It will also help them in their travel behavior and booking decisions. On the other hand, some also stated that when travelers encounter problems, they will still look for help from travel agents, which is grounded in the theme “Travel agents over AI.”

These results can also be supported by the article entitled “AI Chatbots in Travel and Tourism: Enhancing the Traveler Experience” by Dukic (2024). They stated that AI tools, such as chatbots, provide travelers with personalized suggestions about different destinations, accommodations, and travel activities that are tailored to travelers’ individual preferences. With that, artificial intelligence will most likely influence the behavior of tourists and help them in their overall booking decision-making process.

Test of Relationship

Based on the above assessment shows the tourists’ behavior and insights on their experience with the existing technologies such as AI. In achieving the overall objective of the study, the last part of the result deals with identifying the underlying relationship between the tourist’s behavior and decision-making and artificial intelligence. The researchers used Spearman’s Rank Correlation to determine the outcome.

Chatbots vs. Tourist’s Behavior and Decision-Making\

Table 6. Significant Relationship Between Chatbots and Tourist’s Behavior and Decision-Making

Independent Variable: Chatbots

Null hypothesis: There is no significant relationship between the chatbots and tourist’s behavior and decision-making

Alternative hypothesis: There is a significant relationship between the chatbots and tourist’s behavior and decision-making

Table 6 reveals the significant relationship between the chatbots and the tourist’s behavior and decision-making. Since the result shows a p-value of .000, which is less than the value of 0.05, the null hypothesis is rejected. This means that there is a significant relationship between the two variables. Moreover, the computed correlation value is 0.709, which describes a strong positive correlation between chatbots and the tourist’s behavior and decision-making. The result implies that the tourist’s behavior and decision-making strongly depend on the services provided by the travel agencies through the use of chatbots or computer programs that simulate human conversation.

Virtual Travel Assistant vs. Tourist’s Behavior and Decision-Making

Table 7. Significant Relationship Between Virtual Travel Assistants and Tourist’s Behavior and Decision-Making

Independent Variable: Virtual Travel Assistant

Null hypothesis: There is no significant relationship between the virtual travel assistant and tourist’s behavior and decision-making.

Alternative hypothesis: There is a significant relationship between the virtual travel assistant and tourist’s behavior and decision-making.

Table 7 reveals the significant relationship between the virtual travel assistant and tourist’s behavior and decision-making. Since the result shows a p-value of .000, which is less than the value of 0.05, the null hypothesis is rejected. This means that there is a significant relationship between the two variables. Moreover, the computed correlation value is 0.509, which indicates a moderate positive correlation between the virtual travel assistant and tourists’ behavior and decision-making. The result implies that the tourist’s behavior and decision-making moderately depend on the travel assistance provided by the travel agencies virtually.

Artificial Intelligence vs. Tourist’s Behavior and Decision-Making

Table 8. Significant Relationship Between Artificial Intelligence and Tourist Behavior and Decision-Making

Independent Variable: Artificial Intelligence

Null hypothesis: There is no significant relationship between artificial intelligence and tourist’s behavior and decision-making.

Alternative hypothesis: There is a significant relationship between artificial intelligence and tourist’s behavior and decision-making.

Table 8 reveals the significant relationship between artificial intelligence and tourist’s behavior and decision-making. Since the result shows a p-value of .000, which is less than the value of 0.05, the null hypothesis is rejected. This means that there is a significant relationship between the two variables. Moreover, the computed correlation value is 0.695, which describes a strong positive correlation between artificial intelligence and tourist’s behavior and decision-making. The result implies that the tourist’s behavior and decision-making strongly depend on the existing technological advancements through AI tools provided by the travel agencies.

On the other hand, the researchers displayed tabular forms to visualize and show the results in the qualitative part of the research, which answers the statement of problem number three (3), the travel agencies perceived impacts of artificial intelligence on tourist behavior and decision-making.

Q1. EXPERIENCES AND INSIGHTS 

Table 9. Coding Statement and Theme

Artificial intelligence has brought significant changes to the tourism industry, particularly in the service sector, enhancing the overall travel experiences. This research study explores the perceptions of travel agencies regarding the integration of artificial intelligence into their operations. Understanding the potential effects of artificial intelligence on tourists’ booking behavior and decision-making is crucial for businesses to adjust their operations based on what their target clients demand.

The study examines the views and perceptions of travel agencies, focusing on their experiences and insights in assisting travelers with their bookings. One key insight shared by travel agencies is the importance of mastering the power of patience when assisting travelers, who often have various requests about their tours. Additionally, there is a need to incorporate seamless booking with the global distribution system. Some travel agencies partner with global distribution system providers to gain exclusive access to various airlines, making flight booking more efficient and offering a broader range of flight options to their clients.

Travel agencies also deal with persistent clients with the unbreakable will to repeatedly ask for information about their travel plans, target dates, and tour package prices. Lastly, offering smart saving deals is essential. Travelers should be presented with various tour package choices that fit their budgets, as this is typically what they look for when booking. These experiences and insights will benefit other business sectors in the tourism industry, ensuring that their services meet the needs and demands of their clients. The following claims are supported by the primary information gathered:

TA3: “We have an established system and connected siya sa mga airlines. Kung ano yung nakikita nyo sa airlines, nakikita namin yan. So all airlines, connected kami. So, may provider kami ng system, yan yung nagdi-distribute sa mga agency, nakikipag-partner kami dun. Then, yung provider naman ng system naman na yun, sila naman ang nakikipag-partner sa mga airlines.” (Our agency utilizes an organized system to assist travelers. For ticketing, it is not that much of a hassle. Actually, ticketing is a basic part of our services. For your reference, every travel agency must use an established system to which airlines all over the world are connected. Whatever you see with the airlines, we see it too. So, all airlines are connected to us. We have a system provider that distributes to the agencies, and we partner with them. Then, the system provider partners with the airlines.)

TA4: “Sa pag-a-assist ng mga clients sa tourist industry, kailangan bigyan mo sila ng maraming options na pwede nilang puntahan. Bigyan mo sila ng magandang rates or choices na pwede nilang ma-afford. Then, kailangan mo din kukuha yung gusto talaga nilang mapuntahan o mabisita.” (In assisting clients in the tourist industry, you need to give them many options that they have available. Give them good rates or choices that they can afford. Then, you also need to get what they really want to go to or visit.)

TA2: “Tapos, syempre, specific nila, possible kapag mga summer, possible talaga na mataas. So, ang gagawin natin nagbibigay tayo ng mga sample na price na swak sa budget, pero enjoyable nila. At saka, yung comfortable nila sa magiging hotel accomodation nila.” (Then of course, they are specific; during summer it is possible that the prices are higher. So, what we will do is that we will provide a sample price that is affordable yet still enjoyable for them. Also, ensuring that they’re comfortable with their hotel accommodations.)

TA1: “Throughout this process, when our clients are booking and lahat kung nai-inquiry, We share kung among mga kailangan talaga nilalangang travel kung saan man or domestic or international. And then we’re sure na they have the ability to know kung ano yung mga dapat na malaman when booking’s done.” (Throughout this process, when our clients are booking and all my inquiries, we share what is really necessary for travel anywhere, whether domestic or international. And then we are sure that they can know what should be known when booking is done.)

TA2: “Makulit, through my experience, may mga possible kasi na, syempre, inaano muna nila yung mga target nilang date.” (They are persistent. Based on my experience, it’s possible that they’re prioritizing their target dates.)

TA4: “Tapos, dapat mahaba rin ang pasensya mo kasi maraming clients, hindi sila nag-stick sa isang plan. Kasi marami silang gustong additional na po pwedeng i-add doon sa tour nila. So, dapat, dapat ma-fulfill mo yung desire nila. At mabigyan mo sila ng magandang assistance para kumuha sa’yo ng package tour or booking ng airfare or booking ng parko. Basta habahan mo lang yung pasensya mo.” (Then, you must also have a long patience because many clients don’t stick to a plan. Because they want many additional things that can be added to their tour. So, you must, you must fulfill their desire. And give them good assistance to get you a package tour or airfare booking or park booking. Just be patient.)

Various resources and studies also support these results. Seamless booking with a Global Distribution System (GDS), Smart Savings Deals, the Unbreakable will of clients, and mastering the power of patience in customer service are key strategies for travel agencies to enhance customer satisfaction and loyalty. Barten (2024) stated that Global Distribution Systems enables real-time updates and booking experience, helping travel agencies be updated about flight details from various airlines. There is also a strong need to offer smart saving deals that can attract budget-conscious travelers while understanding and catering to the unbreakable will of clients, which ensures personalized and tailored recommendations that meet their evolving needs (Duc, 2024). Lastly, mastering the power of patience in customer service fosters positive interactions with travelers, leading to their decision-making process of booking through travel agencies (Dukic, 2024).

Q2. INTERACTIONS OF CLIENTS WITH AI TOOLS 

Table 10. Coding Statement and Theme

In the evolving landscape of travel agencies, the integration of AI tools has become a significant point of discussion. As technology advances, the potential for AI to transform the travel industry becomes more evident. The participants stated that their clients have not interacted with AI tools when making travel arrangements, given that their agency does not implement any AI tools. However, the employees themselves have engaged with AI tools in their work roles. Nowadays, the participants continue to favor a traditional approach, valuing the human workforce for their operational system, particularly in handling inquiries. As corroborating evidence, the following observations are provided by important informants:

TA1: “Wala pa naman. Since lahat naman ng mga inquiries nila or booking nila is decision nila.” (Nothing has come up yet since all their inquiries or bookings are their decisions, and nothing has been reinforced.)

TA2: “Wala pero possible may nagrereply talaga.” (Nothing, but there may be someone replying on the page)

TA3: “Hindi pa. Hindi pa. Kasi as of now, gumagamit kami ng system, system based.” (Not yet. Because as of now, we use a system, system based.)

Q2.1. ADOPTED AI TOOLS 

Table 11. Coding Statement and Theme

The integration of AI is becoming increasingly prevalent across various sectors. Organizations are recognizing AI’s potential to increase productivity, improve decision-making, etc. However, according to the participants, they are gradually adopting AI tools while maintaining a preference for traditional methods. To support this, key informants have provided the following observations:

TA1: “ChatGPT lang kasi we use it as a for making itineraries for traveling kung saan pwede mapakita yung dapat na puntahan ng tourist when it comes sa need talaga nila.” (ChatGPT is the one we use to make itineraries for traveling, which can show what the tourists should go to when it comes to what they really need.)

TA2: “Well, since, as I mentioned, we are using a system, and I do believe that our system is actually part of some of our system access or yung functions was actually using AI. So, yan. Actually, yan yung system namin, I believe na pasok siya sa AI. Not literally 100% ahhh.” (Well, as I mentioned, we are using a system, and I believe that some of our system’s functions are actually using AI. With that, I believe that our system incorporates AI, though not 100%.)

TA3: “Hindi pa. Hindi pa. Kasi as of now, gumagamit kami ng system, system based. So, i-input lang namin sa system, lalabas na dun yung pinaka itinerary. Tapos lalabas din dun yung pinaka-available tourist destination, yung date nung alIs, date nung haba kung gano’ng katagal yung tour nila. Lalabas din dun sa system namin yung mga available na prices from lowest to highest rates.” (Not yet. Not yet. Because as of now, we use a system system-based approach. So, we just input the details into the system, and it generates the complete itinerary. It also shows the available tourist destinations, the departure date, the duration of the tour, and the available prices, from the lowest to the highest rates. Not yet. Not yet. Because as of now, we use a system system-based approach. So, we just input the details into the system, and it generates the complete itinerary. It also shows the available tourist destinations, the departure date, the duration of the tour, and the available prices, from the lowest to the highest rates.)

TA4: “Hindi eh ang pinaka-communication talaga na, personal account ko, yung ano, yung messenger account ko, tapos, ah, yung ano ni Lakbay, yung page ni Lakbay and email.” (No. The only communication tools that we are using are my personal account and the Fb page of this travel agency as well as email but AI tools, nothing.)

Q3. PRIMARY REASON 

Table 12. Coding Statement and Theme

In the fast-paced world of travel, agencies are progressively turning to AI tools as a strategic response to the evolving demands of the industry. As stated by the Participants, the fundamental objective for this transition is to work with AI efficiently. It facilitates their work by providing immediate ideas for captions, marketing campaigns, etc. Furthermore, the AI will eliminate the need for manual communication with airlines, hotels, shipping businesses, and other linked industries related to the tourist’s travel about the detailed information. In AI, the information will be presented in the form of a package with the available seats, accommodations, rates, rooms, airfare, and so on.

TA1: “Ayun nga, sa sinabi ko last time na we are using it sa mga itineraries kunyari may specific na gusto yung client namin na mapuntahan. For me, satisfied naman since it really big help sa akin.” (As I said last time that we are using it in the itineraries because there is something specific that our client wants to go to. Then it is like we are making a process of how the ways should really be where they start to end. I am satisfied since it is really a big help to my work.)

TA2: “Yes. Actually, napapadali niya lahat talaga. Sa marketing campaign, nohh, isa yan. Ang AI kasi may times na mahirap mag-compose ng mga marketing campaign posters, ideas. Si AI saglit lang yan. Tell me AI kung ano yung kailangan kong i-ano. Sasagutin lang ni AI yan. Eh ngayon si AI, saglit lang siya. So, actually, nakakatulong si AI sa akin. Pagdating sa marketing. Marketing Ideas.” (Yes, it really makes everything easier. One example is in marketing campaigns. AI can quickly compose marketing campaign posters and generate ideas, which can sometimes be challenging. You can just ask AI what you need, and it will provide an answer. Before, we used to have lengthy discussions about the best approach. Now, AI can do it in no time. So, AI actually helps me a lot when it comes to marketing and generating marketing ideas.)

TA3: “Mas madali siyang gamitin. Kisa imano-mano mo, konta ka ng hotel, konta ka sa airlines, konta ka sa shipping companies. Sa system, all in na yun. Ando na lahat.Mas mabilis siyang igamitin.” (It is easier to use. If you do it manually, you need to deal with the hotel, the airlines, and the shipping companies separately. In the system, everything is all in. It is all ready and integrated. You can book airlines, parks, holidays, and hotels. It is a complete package. It is faster and more convenient to use.)

Q4. ASPECTS OF CUSTOMER SERVICE IMPROVED BY AI 

Table 13. Coding Statement and Theme

Various aspects of customer service would improve with the integration of artificial intelligence. One of which is personalization. Artificial intelligence, with its machine learning capabilities, allows it to analyze customers’ individual preferences. Consequently, AI can help travel agencies personalize the content shown to their target clients based on their preferences. Lastly, there is an automated quotation, which helps travelers obtain the quotation or the price of a tour package from travel agencies. However, some of the participants stated that this question is not applicable to them because they have not yet incorporated AI tools in their operations. They mentioned that humans currently handle all aspects of customer services in their business. As of now, the participants stated several factors are stopping them from integrating artificial intelligence, such as some of their client base not being completely informed about the usage of artificial intelligence, including older adults. They are planning to fully incorporate artificial intelligence in the future if given the chance, and it all depends on their circumstances. The following claims are offered as proof, as expressed by the primary informants:

TA3: “Well, pagdating sa ganyan, personalization. Sa personalization ng tools ng mga client namin.” (Well, regarding the aspect of improvement and personalization, AI will be helpful in personalizing for our clients.)

TA4: “Sa customer service, mas madaling silang nabibigyan ng quotations pag nagpapakot sila ng mga gusto nilang travel o yung mga tour nila.” (In customer service, it is easier for them to be given quotations when they talk about the travel they want or their tours.)

TA1: “For me, hindi naman naging ganun ka-improve kasi we only use it for making itineraries And then, some of captions for posting to make it more fun para presentable din sa mga clients na bibisit sa Facebook page na rin.” (For me, it did not improve that much because we only use it for making itineraries. And then, some captions for posting to make it more fun so that it is also presentable to clients who will visit the Facebook page as well.)

TA2: “Hindi naman totally lahat ng mga tinatanong ay nasasagot. Kasi kapag AI is computer nalang siya eh.” (Your question, even if it’s not exactly the one you asked, might only get a specific kind of answer. Unlike when it is an actual person or live chat, where your questions will be answered specifically.)

These results can also be supported by the study of Duc (2024), which was titled “Building a travel booking website with AI support for tourists.” According to the survey, there is a need for travel agencies to incorporate AI into their online website. Travelers today seek personalized experiences and efficient solutions that AI can provide. Firstly, personalized recommendations can be provided by artificial intelligence on these websites, as the AI algorithms analyze the traveler’s data and suggest tailored travel options. Secondly, artificial intelligence algorithms analyze market trends to provide competitive pricing and alert users about potential savings. In conclusion, there is a need for travel agencies to incorporate artificial intelligence grounded by the evolving demands and desires of travelers for a more efficient and personalized booking experience.

Q5. INFLUENCES OF AI IN BOOKING DECISION 

Table 14. Coding Statement and Theme

The presence of artificial intelligence in the operations of travel agencies will have a significant influence on clients’ decisions to book a trip with them. According to the participants, the presence of AI tools will influence clients’ decisions to book through their travel agency, as it can provide them with a sense of convenience. Integrating an AI system into their operations would make the booking process much easier for travelers, including communicating with them, securing bookings, and handling payments. In addition, it helps travelers by providing them with various travel suggestions. Artificial intelligence makes decision-making easier for travelers by providing them with accurate information about their destinations, their distances from each other, and the best transportation options. This ensures that travelers receive reliable and comprehensive recommendations that enhance their booking experiences. However, Some participants stated that the presence of AI tools does not influence clients’ decisions to book through their travel agency. They believe that regardless of whether an agency uses an AI or not, its reputation and popularity are the key factors. The more reputable an agency is, the more it will attract clients, while a less popular one will struggle to gain bookings, irrespective of AI presence. The following claims are supported by the primary information gathered:

TA4: “Siguro. Kasi kay system pa lang, convenient na eh. What if pa kay AI, diba? If kay AI yan, baka mas madali ba? Baka hindi na nga kailangan. Andito pa kami. Kasi minsan, sarado kami. Nagbubook kami through online na lang eh. Kunyari, close kami ngayon. May mga customers na mag-reach sa page. Doon na lang namin sila na-accommodate. Like, kung magkapa-book sila ng aeroplano, barco. Doon na lang namin binubook. Then, online payment. Then, online din yung send ng itineraries.” (Maybe. It is convenient because it’s just a system. What if with AI, right? If it is AI, maybe it is easier? Maybe it’s not necessary. We’re still here. Because sometimes, we are closed. We only book online. Apparently, we are closed now. There are customers who reach our page. We just accommodate them there. If they can book an airplane or boat, we just book it for them. Then, online payment. Itineraries are also sent online.)

TA3: “Yeah, yeah, yeah. Actually, katulad ng sabi ko, ang AI kasi ngayon, connected siya sa lahat na ng system. So, in a way of decision-making pagdating sa client, madali namin siyang nailalatag. AI can suggest kung ano yung mga tourist spots. Na before you can search sa Google, pero hindi siya complete. Si AI pwede niyang ibigay yan, even yung ilang kilometers lang from your hotel. So, after that, ano yung sasakyan mo, yung mga ganun binibigay niya. Complete siya. So pag-dating sa decision, ah okay. Si AI ibibigay niya lang sa’yo talaga yung right distance ng mga tourist spots pagdating sa hotel or sa gusto mo pang puntahan. So, they can easily decide.” (Yeah, as I mentioned, artificial intelligence is now being incorporated into our systems. So, in terms of decision-making for the travelers, our business can easily lay things out. Before the emergence of artificial intelligence, the traditional way was to provide travelers with only their flight details, tour and package information. They cannot get additional information about the place. Therefore, the travelers would search on the internet using Google. However, information from Google Search is not always reliable and can be incomplete. For instance, it might suggest a tourist spot that seems close by, but in reality, it is 100 kilometers away from the hotel. With the emergence of AI, travelers can now obtain accurate information, including the exact distance of tourist attractions from their hotel. AI can also suggest the best transportation options. Thus, artificial intelligence helps tourists to make decisions more easily and efficiently by giving suggestions.)

TA1: “Hindi naman ganon ka-big deal for clients. Kung kunyari, we’re making itineraries for them. But may mga certain destination pa rin sila na kailangan mapuntahan. Which is hindi naman din na nabibigay ng AI or chatgpt.” (It is not a big deal for clients. In fact, we are making itineraries for them. But they still have certain destinations that need to be reached. Which is also not provided by AI or chatgpt.)

TA2: “Hindi. Bakit? Kasi, minsan ano eh, kung gaano kasikat yung isang agency, mas dinudumog siya eh. Hindi siya, for example, inano siya ng AI, inano siya ng computer na ganito siya, ganun. Hindi. Kadalasan, kahit i-influence siya ng computer, kung hindi sikat yung isang agency, hindi rin naman siya papasukin.” (No. Why? Because sometimes, the more notional there is in an agency, the more it sells. For instance, regardless of whether it’s being promoted by AI or the computer presents it to them in some way, it doesn’t matter. A lot of the time, even when the agency is computer-influenced, if the agency isn’t a pop, people still won’t go for it.)

These results can also be supported by the study of Duc (2024), which was titled “Building a travel booking website with AI support for tourists.” Duc (2024) stated that artificial intelligence influences tourists’ decision to book through travel agencies, as it provides recommendations and a sense of convenience. Personalizing recommendations offered by AI builds trust by showing travelers that AI understands their needs, presenting them with various options aligned with their preferences, and influencing their booking decisions. Furthermore, artificial intelligence enhances convenience by simplifying each step, from searching and filtering options to making payments and managing itineraries. This sense of convenience makes booking less hassle for travelers and further encourages them to proceed with their reservations.

Q5.1. CHANGE CUSTOMER’S TRAVEL PREFERENCES OR BEHAVIORS

Table 15. Coding Statement and Theme

Artificial intelligence tools have a real impact on tourists’ travel preferences and behaviors. According to the researcher participant, the purpose of the travel agency is to assist the traveler in their travel, and they earn because of that. On the other hand, some of the answers from AI may not always reflect what the tourist wants to hear or may expect. The following statements from key informants support the evidence:

TA3: “Malaki talaga ang impact ng AI pagdating sa ganyang aspect.” (AI tools really have a major impact on travel preferences and behaviors.)

TA1: “Hindi naman. Since we all talk na ng personal, like talk, wala namang ginagamit ng AI.” (Not really. Since we all talk in person, like face-to-face conversations, we don’t use any AI`.)

TA2: “Minsan talaga, yung tulad na sinabi ko, hindi kasi nila makukuha yung pinaka-answer.” ( Sometimes they will not get the exact answer they are looking for.)

According to Stylos, N. (2019) in his study entitled Technological Evolution and Tourist Decision Making: A Perspective Article. Technological advancements significantly shape tourist decision-making. Traditional frameworks fall short as they predate digital tech. The study introduces a new framework that considers AI’s growing influence, highlighting how AI-powered tools like chatbots and virtual assistants aid tourists in making informed decisions. Meanwhile, according to Kennedy (2023) in the paper entitled The Human Touch: Why AI Will not Replace Travel Agents for Family Vacations. Travel agents have expertise and insider knowledge that AI cannot match. Their firsthand experience with decisions and tours allows them to give insights and recommendations that go beyond AI capabilities.

Q6. AI ENHANCES OVERALL TRAVEL DECISIONS AND BEHAVIOR 

Table 16. Coding Statement and Theme

Artificial Intelligence tools enhance travel decisions and behavior based on the response; they believe that there is a possibility that AI can enhance the overall travel decisions and behavior of travelers. Because just a simple click or type can give you multiple options to choose from.  However, when the problems are encountered inconveniently, the blame will still fall on the travel agency. Presented here are the statements from key informants, serving as evidence:

TA4: “Kaya siguro, may influence din ni AI yung talagang decision, decision making ng client. Kasi marami siyang options na ibigay sa’yo. Saglit lang yan. I- type mo lang yan, lahat, lalabas na ni AI eh.” (So maybe, AI also has an influence on the actual decision, decision making of the client. Because he has many options to give you. That’s just a moment. Just type that, everything, AI will appear.)

TA1: “May mga problems sila when it comes sa immigration. Sa amin pa rin naman yung knowledge naman nang gagaling kasi ayun nga, kami yung agent. ”(We provide advice to our clients, as we do have clients who encounter problems with immigration. We possess the knowledge to assist them because we are the agents.)

According to Oliver Wyman’s survey, written by Hornick et al. (2023), entitled Generative AI’s Influence on Leisure Traveler Behaviors. Generative AI has rapidly gained popularity among leisure travelers, benefits online travel agencies (OTA’s), and new industry players with their own AI tools. Travel suppliers without generative AI must recognize travelers’ enthusiasm and develop their own AI strategies for customer interactions during booking. On the other hand, state in some articles by the American Society of Travel Advisors (ASTA) that they still also highly value the travel agents’ personal touch, expertise, and the ability to offer tailored experiences and unique insights that AI cannot replicate.

Q6.1. OVERALL CUSTOMER SATISFACTION RATE 

Table 17. Coding Statement and Theme

Customer service satisfaction in travel agencies Based on the participant’s responses, the overall satisfaction within their agency is reportedly higher, and the clients apparently feel satisfied. Additionally, one respondent took the neutral side, stating that there may be a balanced perspective with both positive and negative sides. The following insights from key informants are offered as supporting evidence:

TA1: “I would say na neutral lang. Since hindi naman ganda important yung, ayun nga, kung itong pinag-uusapan natin sa about ai Right? Kasi it’s more on what clients needs na pwede natin ipakita or mashare or mabigyan namin silang knowledge about it.” (I would say just neutral. Since it’s not really important, that’s right, if we’re talking about ai Right? Because it’s more on what clients need that we can show or share or give them knowledge about it.)

TA2: “So sa akin siguro mga 7 or 8. Kasi lahat naman yung client ko nagbibigay ng feedback.”(I think the overall rate of customer satisfaction for our business is 7/10 or 8/10)

TA3: “yung satisfaction nila siguro, mga 80 to 85. Wala naman siguro nakaka-perfect na agency ng 100% na satisfaction eh. (Their satisfaction is around 80% to 85%. No agency can claim 100% satisfaction.)

According to Dr. Kunal Gaurav et al. (2019), .in their study titled “Factors Influencing Customer Satisfaction at Tours and Travel Agencies in India,” Satisfaction reflects a customer’s overall attitude towards a service provider and their emotional response to the gap between expectation and reality. It involves feelings like acceptance, happiness, relief, excitement, and delight. Various factors influence customer satisfaction.

SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS

This chapter presents all the conclusions and recommendations of the researchers based on the presentation, discussion, and analysis of data done in the previous chapter.

The study explored the effects of artificial intelligence on tourist booking behavior and decision-making based on the view of both the tourists and travel agencies. The researchers utilized a mixed-method research design employing both the quantitative and qualitative approaches to gathering information. Key respondents for the study were the tourists and travelers who inquired and booked through travel agencies and the travel agencies themselves within the bounds of San Jose Del Monte City, Bulacan. There were eighty (80) respondents and four (4) participants in the study.

Summary of Findings

Based on the findings, the demographic profile of the tourist respondents includes age group, gender, income level, and employment status. Firstly, the results indicated that 61.3 % out of 100% tourists fall within the 18-25 age group and as supported by the study entitled “Airline Chatbots as Communication Tool Towards Consumer Satisfaction on Pre-flight Assistance Services” by Garcia, Landicho, Magbalita, Maligaya, Vertucio, Gamoso, & Peralta (2023), generation Z, grew up immersed in the digital age, the internet, and various media platforms. This upbringing often results in stereotypes of them being tech addicts. Consequently, they are the kind of people who incorporate online sites and digital tools into their daily lives, with the majority of them being female, with 70% of responses. This signifies that most females prefer using online assistance for travel.

Women tend to travel more adventurously, seeking out unique and new destinations, which leads them to ask for online and digital assistance. Furthermore, the lower middle class emerged as the leading group in terms of income level, with a percentage of 62.5%. The data highlights that the lower middle class is embracing AI due to its affordability and accessibility, which is proved by Garcia’s (2022) study entitled “Travel and the Middle Class.” AI technologies make travel more feasible amidst inflation and rising costs by offering economical trip planning options such as price comparisons and personalized itineraries. Additionally, as traditional travel services become more expensive, AI provides affordable alternatives that help this demographic overcome travel barriers, such as high airfare and limited transportation options. This pattern is part of a larger trend where AI makes travel resources more accessible to people on a tight budget. Lastly, in the context of employment status, the majority of the respondents who shared their insights are unemployed, with a percentage of 48.8%, given that this group of tourists consists of students, housewives, and retired professionals.

The assessment of tourists regarding their experiences with artificial intelligence tools provided by travel agencies, particularly chatbots and virtual travel assistants.

Firstly, the findings showed that most of the tourists agree that chatbots greatly contribute to travel agencies in ensuring good quality travel services (Mean=3.99, SD=0.6895). Specifically, researchers noted that most of the tourists considered this computer program that simulates human conversations with the tourists to be easy to use for travel-related inquiries (Mean=4.07, SD=0.7946), which makes them more convenient (Mean=4.04, SD=0.8278). These findings are further supported by the study titled “Airline Chatbots as Communication Tool Towards Consumer Satisfaction on Pre-flight Assistance Services” by Garcia et al. (2023). This study underscores the benefits of chatbots, noting that their user-friendly conversational patterns facilitate ease of access for travel-related inquiries and information retrieval.

On the other hand, the result shows that most of the tourists agree that the virtual travel assistance provided by the travel agencies greatly contributes to and helps them in planning and arranging their travels (Mean=4.05, SD=0.6913). Specifically, it was noted that tourists improved the level of their satisfaction related to the travel services of these agencies due to the provision of virtual travel assistants (Mean=4.16, SD=0.7483). Relatedly, the emergence of virtual travel assistance also enhances the overall travel experience of the tourists (Mean=4.10, SD=0.7454), and they have trust in the information being provided by this platform (Mean=4.08, SD=0.7061). This positive perception can be further supported by Ling et al. (2023). According to their study, virtual travel assistants with strong conversational capabilities can provide personalized travel recommendations and real-time assistance catering to the needs of the tourists. This increases the likelihood of tourists booking through travel agencies that integrate this artificial intelligence tool.

In regard to the result, the research findings show that most tourists believe that AI tools used by travel agencies can enhance their travel decision-making and overall experience (Mean=3.94, SD=0.7223). They particularly appreciate how AI helps them discover travel suggestions (Mean=4.24, SD=0.7670). These findings highlight the positive impact of AI on improving travel planning for tourists.

As stated in Olivers Wyman’s 2023 survey by Hornick et al., titled “Generative AI’s influence on leisure travel behaviors,” generative AI has quickly gained traction among leisure travelers, as it provides them with personalized travel suggestions. This development benefits online travel agencies (OTA’s) and needs to recognize travelers’ enthusiasm and develop AI strategies for customer interaction while booking. Furthermore, based on the qualitative part of the study, travelers are still looking for the assistance of travel agents to address their problems.

The relationship between chatbots, virtual travel assistants, and artificial intelligence was tested, and how they affect tourists’ behavior and decision-making was explored. Firstly, the result of the test of the relationship between chatbots and tourists’ behavior and decision-making shows that the test has a p-value of .000, which is less than the value of 0.05. Therefore, the null hypothesis is rejected, indicating a significant relationship between the chatbots and tourists’ behavior and decision-making. Secondly, the result of the test of the relationship between virtual travel assistants and tourists’ behavior and decision-making shows that the test has a p-value of .000, which is less than the value of 0.05. Therefore, the null hypothesis is rejected, indicating a significant relationship between the virtual travel assistants and tourists’ behavior and decision-making. Lastly, the result of the test of the relationship between artificial intelligence overall and tourist behavior and decision-making shows that with the p-value of .000, which is less than the value of 0.05, therefore the null hypothesis is rejected, indicating a significant relationship between the virtual travel assistants and tourists’ behavior and decision-making. Furthermore, the computed correlation values were 0.709, 0.509, and 0.695, respectively, with a verbal interpretation of significant strong positive correlation, significant moderate positive correlation, and strong positive correlation.

Based on the participants’ responses, question number one resulted in four themes related to the experiences and insights of travel agencies while assisting their customers. Meanwhile, question number two resulted in only one theme, indicating that, up until now, the travel agencies in San Jose Del Monte City, Bulacan, have yet to interact with AI tools while booking trips because they use the system. A follow-up question on this topic revealed three themes about whether travel agencies have adopted AI tools. Furthermore, only one theme emerged from question number three, which focused on the primary reason for adopting AI and the level of satisfaction with the AI tools used by travel agencies. Additionally, question number four resulted in three themes related to customer service improvements due to AI adoption. Question number five produced two themes regarding the belief that AI tools influence clients’ decisions to book through travel agencies. A follow-up question to this yielded two themes on whether AI tools change travel preferences or behaviors. Finally, the last question resulted in two themes suggesting that travel agencies believe AI tools can enhance overall travel decisions and behaviors. The follow-up question regarding overall customer satisfaction also resulted in one theme. These findings highlight the varying degrees of AI adoption and its perceived impact on travel agency operations, customer service, and client decision-making in San Jose Del Monte, Bulacan.

In general, according to the article entitled “What AI Means for Travel—now and in the Future,” written by Cosmas and Krishan (2023). Examines the transformative impact of artificial intelligence and digital technologies on the travel industry. It emphasizes the importance of travel companies enhancing customer experiences, customizing their services, and using AI to boost operational efficiency. The report article discussed AI tools, including personalized itineraries and digital assistants, as key examples. The author claims that adapting these AI tools is essential for businesses to take advantage of the projected growth in the travel sector and to meet the changing demands of customers. It also serves as a guide for companies to thrive in the digital era.

Conclusions

The findings highlight that a significant portion of tourists have grown up in the digital age, surrounded by the internet world and various media platforms, which has led to their adeptness in using digital tools and AI advancements. Moreover, since they are accustomed to using digital tools and websites, they integrate these AI technologies into their daily life, especially while making decisions and organizing trips. This pattern emphasizes how crucial it is for travel firms to include AI and digital tools in order to accommodate Gen Z travelers’ preferences and behaviors and match their expectations as a tech-savvy generation. In addition to that, women are more likely to engage in AI-related activities when planning or enjoying their travels since Females dominate the demographic. This may indicate a higher preference or inclination of women to engage with AI-related tools in their travel planning or experiences. AI solutions can make travel planning easier and more pleasurable by offering real-time updates, personalized recommendations, and smooth booking procedures. For female travelers, who can place a higher value on comfort, safety, and unique experiences, AI’s capacity to provide tailored travel solutions and cater to individual demands can be very alluring.

Furthermore, the majority of users are from the lower-middle income bracket, highlighting the affordability and accessibility of AI-based travel tools to this socioeconomic group. In line with this, almost half of the portion is unemployed, which probably includes students, housewives, retired professionals, and individuals with more time to engage with emerging technologies and have other sources of income in their families. The findings emphasize the current appeals of AI travel tools among younger individuals, female users, those with lower middle incomes, and many of whom are unemployed. Moreover, the qualitative findings indicate that travelers still seek help from travel agents to solve their issues.

The research study found that tourists perceive the integration of artificial intelligence within the tourism industry as beneficial. This means that tourists view the adoption of artificial intelligence tools like chatbots and virtual travel assistants as an opportunity for improving and enhancing their travel experiences. To be more specific, tourists perceive chatbots and virtual travel assistants as tools that greatly enhance the quality of travel services being offered by travel agencies. They agreed that the incorporation of AI chatbots into travel agencies gives them a feeling of ease during their travel-related inquiry phase. The convenience it provides when booking often leads to an overall improved travel experience for tourists.

Furthermore, tourists show satisfaction with virtual travel assistants, as they help them in their travel planning, provide reliable and timely information, and help them discover the best deals being offered by travel agencies. Hence, they believe that these tools provide them with valuable opportunities to make their travel planning and booking more convenient, leading to the overall improvement of their travel experiences. Furthermore, the incorporation of artificial intelligence into the services of travel agencies contributes to tourists’ positive booking behavior. It helps them in their decision-making to book a trip from these agencies. Thus, it can be concluded that there is a clear relationship between travel behavior and tourists’ decision-making regarding the use of AI tools.

The findings indicate that the majority of tourists recognize AI tools used by travel agencies, significantly enhancing their travel decision-making and overall experience. These tools are especially valued for their ability to help travelers discover new travel suggestions, thus making the planning process more efficient and enjoyable. This demonstrates the growing importance of AI in the travel industry, highlighting its role in improving traveler satisfaction and shaping future travel behaviors.

The research study investigated the relationship between artificial intelligence, chatbots, and virtual travel assistants and tourists’ behavior and decision-making. It revealed that there is a significant and strong positive correlation between each of these variables. Firstly, chatbots show a significant strong positive relationship with tourists’ behavior and decision-making. This suggests that tourists significantly rely on chatbots for their inquiries and booking decisions. Secondly, virtual travel assistants show a significant moderate positive relationship with tourists’ behavior and decision-making. This suggests that the usage of this AI tool is beneficial for tourists as they plan and arrange their travel. Hence, it enhances their overall experiences and satisfaction. Overall, artificial intelligence has a significant, strong, positive relationship with tourists’ behavior and decision-making. This means that AI tools found in travel agencies help encourage them to book a trip with these agencies.

The research findings provide a comprehensive overview of the current state and impact of AI tools in travel agencies in San Jose Del Monte Bulacan. Some of the travel agencies use a system that is connected to the airlines, highlighting the importance of flexibility and patience in meeting clients’ needs. Also, direct interaction with the AI tools is limited. AI adaptation has enhanced aspects of customer services such as personalization and quick quotations, although some limitations remain for all client inquiries. The influence of AI on booking decisions and changing travel references is seen, with varying perceptions among respondents. Despite this advancement, personnel remain crucial in delivering satisfactory services. Overall, customer satisfaction is high, though achieving the perfect satisfaction rate is challenging due to unforeseen issues, like natural phenomena. The results point to the crucial role of AI in improving travel agency operations while also stressing the importance of maintaining personal interaction and adaptability to address diverse client needs. The human and technology touch is needed for the future success of the travel agencies in the City of San Jose Del Monte Bulacan.

Recommendations

Travel agency owners and agents should generate and exert effort to increase and expand AI adoption in their agency. One strategy is the implementation of data analytics. By leveraging data analytics, travel agencies can acquire a deeper understanding of their customer based on their preferences, behaviors, and interactions. This enables agencies to create experiences that are customized to match the unique requirements and preferences of their clients. Agencies can anticipate clients’ wants and proactively handle possible problems by examining customer feedback and behavior to find trends and patterns. Travel agencies can integrate Predictive Analytics, which anticipates future patterns and behaviors using machine learning, AI algorithms, and historical data, as well as Big Data Analytics, which entails examining vast amounts of data from multiple sources, including website traffic, social media interactions, online reviews, and customer reservations.

This entails addressing and focusing on unique barriers like adaptability since older communities may need help to adapt to new digital tools since they are accustomed to traditional methods of travel planning. Additionally, concerns about data privacy and security can be a significant barrier, as higher-income individuals may be more cautious about sharing personal information online and about reliability and accuracy since they need credible and accurate information quickly. Therefore, any apparent inaccuracy or inefficiency in AI technologies may serve as a strong disincentive. These barriers are encountered by various client demographics, which include the older community, higher-income people, and full-time working individuals. Agencies should generate and provide personalized solutions such as simplified user interfaces that are easy to navigate by older communities, exclusive concierge services for higher income people that provide personalized travel planning, including luxury accommodations, exclusive experiences, and tailored itineraries, and seamless integration with work schedules that provide travel suggestions that accommodate work obligations by integrating with calendar apps and work schedules. Provide individualized travel plans with choices for flexible scheduling, high-speed internet access, and remote work. This addresses the unique requirements of these groups in order to meet their specific desires. By integrating this, they can ensure a more seamless integration of AI, boost client satisfaction, and eventually raise the general efficacy and efficiency of their services.

Based on the conclusions drawn regarding artificial intelligence tools, such as chatbots and virtual travel assistants, travel agencies must continuously monitor and improve these tools. Continuous monitoring ensures that these AI tools are functioning as intended, answering tourists’ inquiries as accurately as possible. To achieve this, travel agencies should utilize the Balance Scorecard (BSC). This performance measurement system assess performance across four key perspectives: Financial, Customer, Internal Processes, and Learning & Growth (Mahboub, 2024). Since the study focuses on the improvement of AI tools, travel agencies should emphasize the Customer Perspective.

Travel agencies can implement regular user feedback surveys. After each interaction with these AI tools, users should be prompted to rate their satisfaction level on a scale of 1 to 5, with five being the highest and one the lowest. In addition, they can use customer feedback forms to pinpoint areas where AI tools may need to catch up. This regular collection of user feedback helps travel agencies identify common issues that travelers encounter, as well as point out areas for improvement. Based on this feedback, travel agencies should develop action plans to implement changes aimed at addressing customer concerns and enhancing satisfaction. Updating AI tools with new information based on user feedback and the latest travel trends can improve their accuracy and relevance. Regular improvement and updating these tools will ensure they remain effective and continue to meet customer needs and demands.

Based on the findings, tourists are still looking for the assistant of the travel agents. Therefore, these agencies should train their staff to work effectively alongside AI tools, blending human support with the technology. This balanced approach will cater to the diverse customer preferences, ensuring comprehensive assistance throughout the travel journey. By integrating AI with personal service, agencies can streamline operations and enhance customer satisfaction and position as innovative in the industry.

In light of these findings, it is recommended that travel agencies integrate artificial intelligence tools in their business operations. Specifically, AI tools can be integrated across various customer support channels, such as websites, mobile apps, and in-person interactions, to provide seamless and consistent experience for clients. To achieve this, AI-powered chatbots should be set up on websites that handle inquiries and guide customers through their booking process. On mobile apps, virtual travel assistants can provide travelers with real-time updates about their bookings. Lastly, in physical locations, AI tools can support travel agency staff by giving them immediate access to customer data and individual preferences based on past interactions, ensuring that when tourists inquire in-person, staff will be informed about the tourists past conversations with AI tools.

Based on the result, the rapid integration of AI technologies is essential for the future success of travel agencies in San Jose Del Monte Bulacan. Further expanding of AI use beyond current use can enhance the customer service interactions and there must be personalized recommendation will come from the travel agency. Investing in flexible AI tools will help agencies adapt and stay competitive. Also encouraging travel agents to learn more about the AI-tools that can help them to understand it more. Balancing AI tools with the help of human agents will enhance the service quality. Frequently checking AI performance and customer feedback will help keep meeting clients’ needs. By focusing on AI growth and adaptation, travel agencies can ensure their long-term success.

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