Without you even realizing it, artificial intelligence can have a huge impact on your success.
Revenue from the impact of AI in the travel industry increased from 9% in 2018 to 21% in 2021. In 2024, this number is expected to rise to 32%. In other words, within the next year, nearly a third of his annual revenue could come from artificial intelligence.
AI isn’t the only technology trend to watch in 2024. Travel and hospitality is about to undergo major changes as technology modernizes entire industries. Staying competitive requires preparation.
This article explores what travel and hospitality will look like in 2024, with a focus on how the growing influence of personalization, the continued rise of AI, and conversational commerce will open up new opportunities for businesses like yours. Explore the top technology trends that will redefine.
Trend 1: Personalization is expected everywhere
For modern travelers, tailored experiences are no longer a luxury, but a necessity. 80% of consumers want a personalized experience from retailers, and the tourism industry is no exception. From pre-booking to post-stay interactions, customers expect every touchpoint to be tailored to their preferences.
It wasn’t always like that. Personalized touchpoints were highly valued even before the pandemic, but they weren’t a necessity for travelers. As global tourism returns to pre-pandemic levels, you need to leverage personalization to stand out and deliver impactful experiences that appeal to customers on a psychological level and strengthen brand loyalty.
Personalization is made easy with AI, which allows you to customize almost anything. Whether creating web and email content, recommending products, or setting targeted ads, AI personalization identifies the small details that make customers feel valued and understood. So you can use that data to increase revenue and reduce churn.
AI personalization also paves the way for holistic personalization. By considering every customer touchpoint, comprehensive personalization enables customers to experience a seamless, unified, and highly personalized service across all channels. Every client is guaranteed a unique interaction.
Best of all, you don’t have to wait until the customer makes a purchase to start personalizing the experience. Every interaction with a brand is an opportunity to collect valuable data that enables deeper personalization. For example, by tracking the types of vacations a visitor views during her website visit, you can suggest similar vacation packages within the same viewing session, potentially leading to a booking.
Trend 2: AI is here to stay
Artificial intelligence, especially generative AI, is revolutionizing travel and hospitality companies. Generative AI uses training data to create new content, such as images and text. You can also build visually stunning virtual experiences, such as personalized travel itineraries that streamline the booking process.
Generative AI has the power to contribute $4.4 trillion to the global economy. Needless to say, one-third of travelers say they are willing to use generating tools like ChatGPT to plan their vacations. Finding ways to use this technology now will open up opportunities for your business and help you continue to meet customer expectations.
Another big change in user experience is AI-powered site search. AI-powered site search uses natural language processing (NLP) and machine learning to read user queries and analyze the intent behind them. The tool then provides relevant search results that represent exactly what the customer is looking for.
Powerful AI doesn’t just improve your online experience. It also integrates what’s happening online and in-person to create an even better experience for customers. In the travel and hospitality industry, this looks like this:
- A loyalty program that rewards customers for online bookings and local spending during their travels.
- Predictive customer service. Discounts will be provided at check-in for services viewed online but not booked.
- Faster check-in process using data from previous online experiences
Finally, AI makes audience segmentation more accessible and impactful. AI analyzes vast amounts of data to uncover hidden patterns and preferences. This allows travel and hospitality companies to create personalized marketing campaigns that are more likely to lead to conversions at the right time. So instead of sending the same message to everyone, you can deliver relevant, customized messages on the channels your customers use most, at the times they’re most likely to be read.
Trend 3: Conversational commerce is getting bigger
In 2024, conversational commerce will move beyond being a buzzword and emerge as a powerful tool for companies in the travel and hospitality industry.
Conversational commerce uses NLP to facilitate interactions between customers and businesses. In the travel industry, this means providing a dynamic customer experience that allows travelers to seamlessly communicate with travel agents using the same channels they use to chat with friends and family.
Contrary to popular belief, conversational commerce is much more than chatbots. While chatbots can help quickly respond to common inquiries, conversational AI can foster interactions in a variety of ways.
- Messaging apps like Facebook Messenger are an ideal way for customers to make reservations, inquire about travel details, and find recommendations.
- SMS messaging is great for asking for feedback or advertising promotions.
- With voice assistants, you can access travel information and make hands-free reservations using just your voice. Almost 20% of audio speaker owners use their devices for flight and hotel research.
Conversational commerce is so versatile that businesses can help their customers, whether they prefer to engage with their business on WhatsApp, exchange a few text messages, or talk to a virtual assistant. You will be able to respond wherever you are. This flexibility makes it easy for your customers to contact you in a way they feel comfortable with, making the customer experience more accessible and convenient.
Amazing things happen when conversational commerce works with generative AI. A wave of modern e-commerce tools promises to make the shopping experience more intuitive and engaging than ever before. In 2024, look out for conversational shopping platforms that leverage cutting-edge technology to reimagine the way customers book their travel plans.
Innovate your travel experience with technology
Technology is rapidly transforming the travel and hospitality industry, allowing businesses to create personalized and unforgettable experiences for their guests through hyper-personalized touchpoints, AI-powered tools, and conversational commerce. With technology on your side, you can create seamless interactions with customers, anticipate their needs, exceed expectations, and enhance the travel experience in ways never before thought possible.
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