Friday, May 24, 2024
Generative AI is transforming leisure travel, changing how consumers plan vacations just in time for summer, according to a new report from Oliver Wyman.
Generative artificial intelligence (AI) is revolutionizing the leisure travel industry, changing how consumers plan their vacations just in time for summer. According to a new report by Oliver Wyman, a subsidiary of Marsh McLennan, this transformation is well underway.
The report, titled “Why Generative AI Is a Game Changer for Leisure Travel,” reveals that 41% of surveyed Americans and Canadians have used generative AI for trip inspiration or itinerary planning, up from 34% in August 2023. Oliver Wyman’s analysis suggests that online travel agencies (OTAs) could boost their share of the US online travel market by up to 17 percentage points by 2029 if travel suppliers continue to lag in adopting generative AI. This shift could potentially bring OTAs an additional $2 billion in commissions from suppliers.
Key insights from the report include:
Satisfied Travelers – A notable 82% of travelers who have used generative AI tools are likely to use them again for future travel planning. These tools are particularly popular with younger travelers, with 59% of those under 45 years old utilizing AI for travel planning, while 31% of those 45 and older are also adopting these technologies. Over three-quarters of users are satisfied with the travel recommendations provided by AI, leading to high booking conversion rates.
Activities and Extras – Among the more than 90% of recent users who booked trips suggested by generative AI, many also booked specific activities (44%) and dining options (43%) recommended by the tools.
Loyalty – Loyalty members of travel brands show a strong preference for generative AI, with 45% of elite loyalty members recently using AI for trip planning. Additionally, generative AI is popular among cruise travelers, with 54% of those who have taken at least one cruise since 2022 using AI for their travel planning.
This report underscores the growing influence of generative AI in the travel industry and its potential to reshape how consumers plan and book their vacations.
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Friday, May 24, 2024
Friday, May 24, 2024
Friday, May 24, 2024
