Consider the last time you set out to plan your next holiday. Did you find it easy to make a quick decision on where to go, which airline and hotel to choose, which experiences to pick or restaurants to dine at? Chances are you didn’t. And you’re not alone.
The travel planning process is fragmented and can be very time-consuming, with travelers juggling multiple apps, ads and websites to piece together their itineraries. A recent Accenture study titled “The Travel Industry’s New Trip” highlights that almost 7 in 10 (68%) travelers visit up to 10 different websites to plan their trips.
That’s a lot of time and effort and could result in lost revenue. Two thirds (66%) of respondents told Accenture they are dissatisfied with current planning options and 61% find navigation on applications and sites complex. More than half (56%) say that the lack of options for customization or filtering content adds to the time required to make a decision and, in some cases, leads them walking away completely.
As consumers turn their attention to the upcoming holiday season, gifting travel is top of mind for six in 10 consumers who are considering buying experiences such as a vacation package or weekend getaway, according to Accenture’s Annual Holiday Shopping Survey. However, complex booking systems and concern over making the right decision is putting people off and could lead to travel companies missing out on a festive boost to their top line.
Enter generative AI
This is where gen AI can help. Gen AI presents a $28 billion opportunityto transform the travel industry and can help address many of these pain points directly.
In fact, another Accenture study “The Empowered Consumer,” reveals that over half of consumers are open to using conversational AI solutions. Just look at the pilot program Marriott’s Renaissance hotels is running with the introduction of RENAI, that acts as a local insider who can advise on all the best restaurants, secret spots, and can’t miss attractions. Guests no longer have to wait until check-in to meet RENAI — they can connect before they even leave the home. It’s a great way to create an enhanced experience that starts at the point of planning
Booking, can be the most complicated stage of a journey. It is also an area that stands to benefit significantly from gen AI. When operating through a single interface like a superapp, which combines and groups different services into one application, gen AI can help provide a more simplified, centralized view of options such as payment, offers, rewards, and itineraries.
It means that instead of juggling multiple tabs, travelers can interact with a single platform that understands their preferences and history. With gen AI, travel planning is not only simplified but can play a key role in creating an exciting prelude to actual journey, making the entire process as enjoyable as the trip itself.
Here are five ways gen AI can make a difference and enhance the travel experience:
Personalization: Gen AI can offer a more personalized and integrated booking experience, suggesting tailored options based on individual preferences in the moment. By analyzing individual preferences and travel histories, gen AI can help generate tailored itineraries that cater to the specific desires of each traveler, that could be boutique hotels that are close to five-star restaurants, or family-friendly options that would appeal to teenagers. For instance, KAYAK launched a suite of AI products using gen AI to make travel planning faster, easier and more intuitive. The Ask KAYAK is a tool used to personalize travelers’ search experiences. Instead of using traditional filters, travelers can simply type in preferences like their favorite airline, departure time, or budget, and receive tailored options. For example, a query like “Airline X, nonstop, morning departure, under $500” provides relevant results, streamlining the entire process.
Simplified Booking: The booking process can be streamlined by gen AI, for example, generating real-time information and advice to help make the decision-making process easier. Saudia Airlines is a good example. It launched Travel Companion, an AI-powered virtual assistant designed to enhance customer experiences. This platform, a key component of Saudia’s broader strategy to innovate travel experience, simplifies the booking process and other travel services such as flight planning and destination exploration.
Gen AI can also help in improved decision making. More than half (56%) of travelers say that a lack of filtering options hinders decision-making. Gen AI can help reduce ease the “decision making workload”, by providing smarter, context-aware filters to improve the user experience.
Streamlined Operations: Globally, just under three-quarters (73%) of travel leaders are focused on adopting gen AI for cost savings and drive greater productivity. Through gen AI, they can automate mundane tasks, allowing companies to focus on improving customer service and operational efficiency by freeing up people to areas of the business where personal touch and interaction is key e.g. customer service.
Travel ‘Superapp’: Almost all (97%) travelers express a desire for a travel superapp that consolidates all aspects of travel planning and management. Gen AI can be pivotal in developing such platforms, offering a seamless, all-in-one solution.
The time to embrace gen AI is now
The potential of gen AI in the travel industry is immense. By embracing this technology, travel companies can offer seamless, personalized, and convenient experiences that meet the modern traveler’s expectations. As we look to the future, the travel industry has the opportunity to redefine customer experiences, boost sales, earn loyalty and unlock new value for organizations.
The travel industry stands at a crossroads. Early-mover advantage is crucial for travel companies to truly reap the benefits of this exciting new technology.
