AI reshaping consumer behaviour in the travel industry

In a significant revelation at the 2024 Travel Weekly Future of Travel Conference, experts highlighted the transformative impact of artificial intelligence (AI) on consumer behaviour within the travel industry. Google’s industry manager, Ailish O’Brien, presented insights into how AI is reshaping the way individuals search for and plan their holidays online.

O’Brien noted that AI is encouraging consumers to seek more profound and varied travel experiences. Over the past six months, there has been a notable increase in the complexity of queries made on search engines, with longer queries — those exceeding five words — rising by 1.5 times. Compounding this, 15% of daily searches now comprise novel queries not previously encountered, illustrating a shift towards more sophisticated and personalised search habits.

This changing consumer landscape is not the only facet affected by AI. Travel businesses are also leveraging AI to address marketing challenges, enhance consumer experiences, and streamline operations. Travel companies are increasingly adopting AI-driven tools such as travel assistants, which offer dynamic itineraries, and chatbots capable of delivering personalised responses.

O’Brien further illustrated AI’s role in the aviation sector, where it aids in reducing fuel consumption, optimises onboard supplies, and predicts the need for component replacements to prevent malfunctions and flight disruptions. She emphasised that Google’s core offerings in travel have evolved more rapidly in the past year due to AI advancements than they had in the preceding two decades.

Simon Powell, CEO of Inspiretec, echoed these sentiments, stressing the importance for the travel industry to adapt swiftly to AI’s rapidly changing landscape. He underscored that engaging with AI is crucial, lest new players enter the scene and dominate the market. Powell recommended incorporating AI via agency communities to maintain consumer trust and reduce the risk of user disenchantment.

During his presentation, Powell introduced technology designed to integrate AI into travel agency operations. His platform features AI-powered capabilities, such as generating customised itinerary suggestions, summarising calls, managing tasks, and training personnel. He stressed the necessity of training AI systems with secure, industry-specific data to ensure accurate outputs and avoid breaches of regulations like GDPR.

However, Powell also cautioned against relying on generic AI systems, such as OpenAI’s public iterations, warning that their usage without proper oversight could lead to significant challenges. The dialogue at the conference underscored the necessity for the travel industry to balance innovation with responsibility as they integrate AI into their business models.

As the application of AI continues to expand, the travel sector stands at a pivotal juncture, poised for rapid transformation. The discussions at the conference provided a glimpse into a future where AI not only influences consumer behaviour but also redefines industry standards, making it imperative for businesses to strategise and adapt accordingly.

Source: Noah Wire Services