6 ways AI can help travel CX take flight

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AI is everywhere and should be shaping the way travel brands craft and execute their business strategies – but that’s easier said than done. With so many rapid advancements in AI and the myriad benefits it can bring to the travel industry, it’s important to implement AI solutions in a deliberate and thoughtful way.

Resist the urge to adopt AI simply for AI’s sake. Even the best automation tools won’t fix a broken customer experience, so be sure to focus AI investments where they will eliminate customer pain points, reduce associate frustration, and generate the best ROI for your brand.

Here are just some of the benefits AI can bring to the travel customer experience.

1. More-personalized recommendations

Customers want their travel experiences to feel personalized, as if they’re catered just to them. AI can help.

AI algorithms can comb though huge volumes of data to analyze user preferences, past behaviors and search patterns to provide personalized recommendations for accommodations, activities, and destinations.

Brands can embrace this level of personalization to enhance consumers’ overall vacation planning experience by offering tailored suggestions that align with individual preferences. This makes travelers feel like you truly understand their needs, which makes them more likely to purchase and increases retention and loyalty.

2. Faster resolutions with chatbots and voice assistants  

AI-powered chatbots and virtual assistants help customers and associates alike by providing a 24/7 solution that can solve common, simple customer inquiries quickly. Use them to answer questions, provide real-time transformation on bookings, and offer travel tips.

In addition, a growing number of brands are starting to integrate voice-activated AI technology to allow travelers to search and book vacations. Virtual assistants like Amazon’s Alexa or Google Assistant lets consumers use voice commands to find information about destinations, hotels, and activities, which makes the vacation planning process more convenient. 

3. Insights-driven dynamic pricing models  

One of AI’s greatest benefits is its ability to analyze large amounts of data and identify trends and patterns that can inform business decisions. This can help with dynamic pricing and discount models.

AI-driven pricing models analyze data such as demand patterns, historical booking trends, and market conditions to optimize pricing strategies. With these insights in hand, travel brands can strategically offer dynamic pricing and discounts, ensuring prices align with demand and market fluctuations.

4. Improved demand forecasting

AI’s analytic capabilities can also help predict demand, ensuring brands are better prepared to meet customer needs and aren’t caught by surprise.

Using predictive analytics, AI can analyze historical data, user behavior, and market trends to provide accurate demand forecasts. Vacation providers can use this information to optimize inventory, manage capacity, and offer promotions during peak booking periods.

5. Better upsell and cross-sell opportunities  

AI-powered recommendation engines can suggest additional services and experiences to enhance vacation itineraries. These recommendations can include local tours, dining options, and activities, enriching the overall vacation experience for travelers.
Use AI to uncover upsell and cross-sell opportunities and identify which travelers would benefit from them. Customers will benefit from a more personalized experience (and a better trip) and your brand will benefit from increased revenue.

6. Improved customer sentiment analysis

AI can quickly and easily analyze customer reviews and feedback to gauge sentiment and identify areas for improvement. Use these insights to guide decisions that will enhance services, address customer concerns, and maintain high levels of customer satisfaction.

When customer sentiment and the customer journey are guiding your strategy, your CX will improve and your operation will become more efficient, helping you realize ROI on AI investments faster.

The right partner is key

AI is here to stay and will keep evolving the way we work and live. The sooner travel brands embrace it the easier it will be to evolve along the way. It’s time to stop treating AI as a buzzword and to really get serious about implementing it in a thoughtful way.

An expert partner can help you examine your customer journey, determine where AI can improve it, and test and implement the best solutions to meet your brand’s unique needs and goals.