How Generative AI Can Act as Your Personal 'Travel Influencer'
We’re about to hit peak travel season, and many people have booked some form of summer vacation – whether that’s within their home country or adventures overseas. Despite macroeconomic pressures, demand for international and domestic U.S. travel continues to be strong, with IATA (International Air Transit Association), data from March 2024 reporting that North American carriers witnessed a 14.5% year on year increase in demand for international travel. Cumulatively, North America is expected to record 2.2 billion passengers (i.e. domestic and international) or 104% of the 2019 levels in 2024.
Some of us may be hyper organized, having booked this year’s trip not long after returning from last year’s, and others may like, or need, to stay flexible and book in the months and weeks leading up. In today’s digital age, we have the option of doing it all ourselves online – which can be a burden for some, and a boon for others. What we do know, is that travelers are faced with an overwhelming amount of information both online and offline when it comes to planning their trips which can make the experience less than enjoyable.
From countless options for flights, hotels, and activities to an endless stream of advertisements, competing claims and recommendations from and for different brands, the process of making travel decisions has become increasingly complex. 75% of respondents in Accenture’s Consumer Pulse 2024 research said they feel bombarded by advertisements and 73% are overwhelmed by too many options.
Looking specifically at hotel bookings, our research has revealed the impact of this ‘information overload’, with 70% feeling that they check too many sources to understand the available accommodation options and 77% wish they could identify the available options that suit their needs more quickly and easily. From identifying and comparing potential destinations, to deciding on budget and setting travel dates and then researching potential hotels and resorts, comparing them, selecting preferences, confirming availability, then checking loyalty benefits and then paying – there’s a lot that can go wrong in between each stage. To further illustrate the problem, the research also found that consumers feel that booking a hotel can be harder than buying a car.
Most poignant is the fact that a staggering 73% of our respondents said that they’d given up and walked away from making a hotel booking in the last three months – a concerning data point that could have a significant impact on hard earned loyalty and revenue.
Overall, uncertain times, squeezed wallets and too much marketing noise is making decision making challenging for customers and impacting hotel brands’ bottom lines – so how do we tackle this?
Gen AI – Your New ‘Travel Influencer’ and Creative Partner
Fortunately, there is a solution that could help cut through the noise and streamline the experience, while thwarting the threat to revenue and loyalty - Generative AI (Gen AI).
Imagine you are searching for a hotel in a new city. Instead of being overwhelmed by countless options and conflicting reviews, Gen AI can act as your personal travel influencer, providing bespoke recommendations based on your preferences, budget, and location. It can consider factors such as your previous travel history, loyalty program status, and even real-time data on local events and attractions. This level of personalization and convenience empowers travelers to make informed decisions quickly and confidently. Additionally, AI driven agents can save time, reduce errors and create more efficient and tailored plans – but the data incorporated and the user experience will ultimately be the differentiator.
According to Accenture's research, 60% are open to using Gen AI advisors to help them find and book a stay and 65% are open to using Gen AI agents that can take on a more proactive role in managing their trip. These statistics highlight the desire for a more streamlined and personalized travel experience, which Gen AI can deliver.
One example of a company that has recognized the value of Gen AI is Marriott International. Part of a pilot program at its Renaissance hotels, RENAI is like a local insider who knows all the best restaurants, secret spots, and can’t-miss attractions at a destination. In a fusion of new tech and traditional hospitality, hotel associates who know their cities well helped to train RENAI. Guests no longer have to wait until check-in to meet RENAI — they can connect before they leave home.
Another way Gen AI can add value is by acting as a creative partner for hotel marketers. By leveraging the technology’s capabilities in design, research, and content creation, companies can deliver more targeted and intuitive marketing campaigns. For example, it can analyze customer data to identify specific interests and preferences, allowing marketers to tailor their messaging and offers accordingly. This not only saves time and effort for both the company and the customer but also enhances the overall travel experience.
Transforming Travel – the Rise of Gen AI
In this evolving landscape, Gen AI holds the key to unlocking the vast potential of the travel industry, ensuring that it not only meets but exceeds the expectations of modern travelers.
As its adoption increases and evolves, the travel world is poised to enhance customer engagement, foster loyalty and boost sales. It also will go beyond just the booking component, enriching the entire end to end experience to help travelers feel more confident, informed and engaged.
As the future of travel brightens with these advancements however, it is crucial for businesses to maintain a sharp focus on what sets them apart. As Gen AI becomes commonplace, distinguishing one brand from another will be vital to avoid a homogenization of travel experiences.
ABOUT THE AUTHOR
As the Global Travel Industry Sector Lead for Accenture, Emily Weiss is responsible for driving the growth of Accenture's Travel business across Hospitality, Aviation, and Travel Services through the delivery of transformational industry solutions.