HOW TO DRIVE CHANGE IN THE TRAVEL INDUSTRY
The essential features for travel companies to adopt will include the responsible use of AI (personalisation, chatbots, virtual assistants), dynamic packages (mixing and matching flights, hotels, and activities), flexible options (easy cancellations and rescheduling), loyalty, exclusive deals and bundled offers.
Artificial Intelligence and Machine Learning:
- Personalisation: AI and machine learning will enable travel companies to offer highly personalised travel recommendations based on user preferences, past behaviours, and real-time data. AI / machine learning is nothing new to the travel industry, its application in dynamic pricing has been in the industry for more than a decade.
- Chatbots and Virtual Assistants: Enhanced AI-powered chatbots will provide instant customer support, handle bookings, and offer travel advice. Historically the travel industry has not seen a huge uptake in bookings from voice technology, Chatbots and personal assistants. Why? Because traveler’s want to see faces, pictures, they want to visualize the experience and this could be changing in the near future with AI.
- Importance of data: Application of AI in travel is complex as there needs to be confidence in the underlying data and LLM’s (Large Language Models). The underlying databases need to be clean and trustable to prevent any “Hallucinations”.
Blockchain Technology:
- Secure Transactions: Blockchain can provide more secure and transparent transactions, reducing the risk of fraud.
- Loyalty Programs: Blockchain can simplify the management and redemption of loyalty points across different partners and programs.
Augmented Reality (AR) and Virtual Reality (VR):
- Virtual Tours: AR and VR can offer immersive virtual tours of destinations, hotels, and attractions, helping travelers make informed decisions.
- Enhanced Planning: These technologies can be used for planning itineraries and visualising travel experiences before booking.
Mobile and Voice Technology:
- Mobile Optimisation: With the increasing use of smartphones, travel companies will continue to enhance their mobile platforms for a seamless booking experience.
- Voice Search and Booking: Integration with voice assistants like Alexa, Google Assistant, and Siri will enable voice-activated searches and bookings.
Sustainability and Eco-Friendly Travel:
- Green Options: Travel companies will offer more eco-friendly travel options, highlighting sustainable hotels, airlines, and activities.
- Carbon Footprint Tracking: Travelers will be able to track and offset their carbon footprints through Travel companies platforms.
Dynamic Packaging and Customisation:
- Tailored Packages: Travel companies will provide more dynamic packaging options, allowing travelers to customise their trips by mixing and matching flights, hotels, and activities.
- Flexible Booking: Flexible booking options, including easy cancellations and rescheduling, will become more prevalent to meet changing traveller needs.
Data Privacy and Security:
- Enhanced Security Measures: As data breaches become a growing concern, travel companies will invest in stronger security measures to protect customer information.
- Compliance with Regulations: Adhering to global data privacy regulations, such as GDPR, will be crucial for maintaining customer trust.
Integration with Travel Ecosystem:
- Partnerships and Collaborations: Travel companies will increasingly collaborate with airlines, hotels, car rental companies, and local experience providers to offer seamless and comprehensive travel solutions.
- Super-Apps: The development of super-apps that integrate various travel services into a single platform could become more common.
Expansion into Emerging Markets:
- Local Adaptations: Travel companies will expand their presence in emerging markets, tailoring their offerings to local cultures and preferences.
- Affordable Travel Options: Focus on providing affordable travel options to cater to the growing middle class in these regions.
Customer-Centric Innovations:
- Enhanced User Experience: Continuous improvements in user interface (UI) and user experience (UX) design to make the booking process as intuitive and pleasant as possible.
- Real-Time Assistance: Offering real-time assistance through various channels to address any issues or queries promptly.
GETTING STRONGER TOGETHER BY ADAPTING TO CHANGE
With the adoption of personalised booking experiences and itineraries comes the need for travel companies to evolve their ancillary strategies and recommendation technology. We’ve primarily used one product to illustrate the possibilities.
Relevant offers:
Ancillary offers should be based on logical relevance as a minimum and address specific or evolving needs of travellers, e.g.:
- Offering cancellation protection for customers booking longer in advance.
- Offering checked-in luggage insurance or recovery services only if checked-in luggage is selected or available.
- Offering lounge access for travellers with long layovers or routes with frequent delays.
- Offering missed connection solutions for bookings with short connecting time between different airlines.
Offering eSIMs to travellers travelling to countries outside their network or where roaming charges are expensive.
Profile-based offers:
Ancillary offers should show comprehension of purchasing behaviour and business vs leisure traveller booking patterns to adapt ancillaries, e.g.:
- Offering lounge access and eSIM for business travellers to continue their work wherever they are.
- Offering additional cancellation protection for events being attended or additional gadget protection for business traveller laptops.
- Offering comprehensive protection for families.
Responsive marketing:
The way ancillaries are presented to travellers should adapt to improve traveller understanding, highlight their needs and distinguish from other offers.
Packaged and discounted offers:
Ancillary offers should generate the highest yield possible without being detrimental to user experience and booking conversion, e.g.
- Reducing overlap and cannibalisation of similar ancillaries and removing ineffective offers.
- Bundling complementary ancillaries to reduce friction and decision-making, as well as increase yield.
- Discounting offers to traveller profiles with historical underperformance.
