Just in time for the summer travel season, the “Why Generative AI Is a Game Changer for Leisure Travel” report found that 41% of American and Canadian respondents surveyed previously utilized generative AI to plan their itineraries or inspire trips. This marks an increase of 7% from August 2023. The management consulting firm Oliver Wyman conducted the research and compiled the report.
The study also showed that online travel agencies, or OTAs, in the United States could see an incremental $2B+ in supplier commissions.
“Consumers are avoiding two major pain points when using generative AI for travel planning—information overload and the time spent navigating multiple sources for inspiration and planning for travel that meets their needs,” said Lawrence Burka, a principal in Oliver Wyman’s Transportation and Services and Pricing, Sales, and Marketing practices. “However, travel brands have been relatively slow in developing customer-facing generative AI tools. This presents a missed opportunity for travel brands to enhance customer loyalty, incentivize direct bookings, and offer personalized recommendations to expand itineraries.”
Other key findings in the report show that 82% of travelers who have utilized generative AI tools are likely to keep using them when making travel plans. Younger travel consumers are also more likely to use generative AI tools, with 59% of travelers under 45 years old harnessing the tools for planning their trips. Thirty-one percent of travelers who are 45 years and older also use generative AI to plan their travels. What’s more, over 75% of consumers who use generative AI are satisfied and happy with the recommendations the tools provide. Conversion rates are also high for AI-suggested travel options. In addition, travel brand loyalty members are particularly fond of generative AI, and 45% of elite loyalty club members use it to plan trips. Generative AI is also popular among cruise travelers. Fifty-four percent of cruise travelers who’ve taken a cruise since 2022 have used generative AI to plan their trips.
Approximately 2,100 Canadians and U.S. consumers participated in the survey held this past March. One criterion for participating was having booked a lodging stay or roundtrip flight for leisure purposes since the beginning of 2023 or a cruise since the beginning of 2022.
Download the report here:
https://www.oliverwyman.com/content/dam/oliver-wyman/v2/publications/2024/may/generative-ai-impact-on-leisure-and-travel-report.pdf
Read More on Trends, Updates, and Industry Leaders
Read more on Loyalty360:
What if AI Was the Key to a Personalized Digital Experience?
Transforming Email Marketing with AI-Powered Product Recommendations
Is Your Generative AI Making Things Up? 4 Ways To Keep It Honest