Brave New World: AI To Be Part of Agency Channel, Report Sez
by Michele McDonald /Artificial intelligence (AI) will be integrated into the travel agency channel by 2030, according to a new report authored by Frost & Sullivan and commissioned by Amadeus.
Travelers will authorize their travel agents to collect data from a variety of sources, including real-time location, emotional state, health status, live video-feed, social updates, and conversations.
The AI will understand the traveler’s needs and desires in a way that was never before achievable, making 100% conversion rates not only possible, but fairly common.
The basic technologies, such as machine learning and natural language processing, already exist and are improving all the time, the report says.
But consumer needs won’t change that much, although their purchasing habits will.
“The best way to approach new travel experiences is to understand customer needs and see how technological developments can address those needs, rather than how a technology can be used to fit existing products and business processes,” the report said.
The report identified six “traveler tribes” whose members share certain characteristics.
‘Traveler tribes’
Simplicity Searchers will be the group most open to personalized offers aligned to their requirements, especially from a trusted brand or supplier who can provide the perfect package to suit their needs.
They will want providers that are transparent, non-intrusive and understand their needs. Their desire for personalization will overcome their hesitancies over giving up data.
Agents should build strong relationships with them in the post-trip period in order to build up data. This will allow personalized bundles of services to be ready and waiting for the inspiration phase of their next trip, which is the best time to influence this group.
Reward Hunters are the “I deserve this” crowd. They want a trip that’s a cut above the rest, whether it’s a relaxing retreat or an exhilarating experience. No mass-market travel for them!
To achieve this, they will pay for expert advice and concierge services. They also will provide data, but only to trusted sources.
They are less open to the “always connected” phenomenon. Once they are on the plane, they switch off and they stay off.
Even before the trip, they will consider service robots and artificial-intelligence agents “mass market,” so there will be a role for a human concierge to provide a human-touch to the travel experience.
Social Capital Seekers want to be seen having the kinds of travel experiences their peers and network groups are trending and tweeting about. In short, they are snobs.
They will want every single service they use to be personalized as much as possible. They will invest in tools that enable more of their lives to be captured and quantified for their own benefit.
They will think nothing of installing connected home devices to better understand their energy usage or when they need to order more food.
Unlike other groups, they are open to continued contact, so long as it is not overly intrusive. Notifications are an ingrained part of their existence.
Creating a sense of scarcity will attract them. Any product that is limited, rare or expensive will be in demand by this group.
Cultural purists want “authentic experiences” and immersion in another way of life. Never mind “personalized services.” They don’t want their past experiences to influence their future travel.
They will avoid robotic booking methods. Human agents that can provide local knowledge and off-the-beaten-track experiences are going to be in high demand for this group.
Cultural purists will cherish flexibility and spontaneity, so providers should focus on delivering flexible options allowing for flight and service changes as well as reducing the number of decisions the traveler has to make at the booking stage.
It will be futile to offer “local” experiences from a set menu. They don’t like anything that feels corporate or pre-packaged.
Ethical travelers focus on social awareness and will use only travel providers with a good track record of corporate social responsibility. But their values are not homogenous. Some travelers will consider some issues more important than others, and it will be important to understand what issues matter most to each traveler.
Bundling is a compelling proposition for this group. They will consider à la carte offerings, but they will be more interested in bundles tailored to their ethical principles offered at the planning and booking stages.
A bundle that includes an eco-retreat, with a volunteering experience and dining at a rural commune, would appeal to the environmentally conscious traveler, for example.
Obligation meeters are the most diverse group, united only by the need to be in a particular place at a particular time. The dates and locations are not within their control. They are determined by factors such as business travel, family events such as weddings and graduations, and religious observances.
Because their time is not entirely their own, a high degree of customer relationship management data will limit the risk of poorly timed and irrelevant service offerings.
A personalized bundle will be exceptionally valuable to this group if it is done effectively. It will be complicated to offer experiences that enable the traveler to meet the obligation and another set of needs at the same time, but the rewards will be worth it.
For example, a business traveler whose meetings begin on Monday morning may enjoy a weekend baseball game at the destination.
Don’t neglect post-trip communications. One-fourth of travelers consider the best time to plan their next trip is when they arrive home from a journey.