Travel is getting (even more) personal
Travel is, and always has been, a personal experience – from the initial ‘dreaming’ phases of travel inspiration through to how each customer navigates their booking journey, and the experiences they purchase. However, there is an increasing shift industry-wide towards hyper-personalization, with a rising number of travelers expecting bespoke, tailor-made trips, with predictions that personalized travel will grow at a significant 17% per year from now until 2032.
While the idea of tailored experiences isn't exactly new, especially in the hospitality sector, it’s really ramping up. The market for personalized travel is expected to hit around US$620.71 million by 2032!
A lot of this shift is thanks to technology. It’s changing how we travel and book our trips, and AI is at the forefront of this transformation. In fact, around 60% of businesses globally are using AI to improve customer service and boost efficiency.
So, what are some key examples of how hyper-personalization is used effectively, and how does this benefit travel advisors?
AI and Machine Learning: These tools analyze traveler data to pick up on patterns and preferences, helping companies gauge what they might want even before travelers know themselves.
Chatbots: on-the-go personal travel assistants providing real-time help and tailored support.
Location-Based Services: What kind of traveler doesn’t have their phone on them nowadays? Apps can send relevant deals or suggestions based on where they are at that moment.
Virtual Tours: Let travelers check out what a destination or hotel has to offer, pre-booking, with virtual experiences.
Big Data: This involves collecting and analysing large amounts of customer information to glean insights on behavior and preferences.
CRM Systems: These systems centralize data and gather information from multiple channels to give a more complete picture of who the traveler is.
Hyper-personalization is the next big step. It’s all about brands using advanced analytics, AI, and automation to meet travelers’ specific needs.
At a recent MarketHub summit, Paul Anthony, our Senior VP for Global Sourcing, mentioned that hyper-personalization is like the 'holy grail' in travel, in that it aims to create that perfect ‘one-to-me' experience rather than a ‘one size fits all’ approach. It’s all about making your customers’ journey seamless and tailored to what they really want, pre- and post-booking.
AI tools help companies dig deeper into customer profiles - both for those they want to attract and those who are already booking trips. This knowledge empowers travel companies to enhance your experience with more personalized touches.
Smart Recommendations
Technology is set to increasingly alter the way that travelers book their experiences, and how they’re recommended places to visit. In-house trained AI models are already delivering personalized recommendations to travelers, influencing how and where they spend their time in-destination. Companies like SmartGuide offer personalized itineraries for over 100,000 places!
Tailored Travel Experiences
Insights, our powerful tool which offers market-specific recommendations, and Google Travel curates itineraries based on traveller preferences, while startups like Bigfoot’s LightFoot chatbot even handle intuitive interactions based on natural language processing.
'Personalized flying’ is also an expected rising trend, where airlines pair algorithm-driven entertainment with hyper-personalized in-flight systems.
Predictive Analytics – Looking Ahead
On the tech side, tools like temporal fusion transformers (TFTs) are making waves within predictive analytics and at HBX Group, our parent company.
A complex attention-based architecture specifically designed for time series forecasting, a temporal fusion transformer captures temporal based patterns across multiple time sequences. This allows for: multi-horizon forecasting, interpretable predictions, and probabilistic forecasting.
What does this mean for you? The use of TFTs allows us to predict bookings, revenue, and market trends with precision. We can forecast sales opportunities to a high level of accuracy, maximizing your potential thanks to the power of predictive analytics. Basically, it's like having a crystal ball for the travel market!
Hyper-Personalization in Hospitality
When it comes to hotels, many are stepping up their game. They’re moving beyond standard offerings and are now introducing increasingly bespoke value-added experiences.
Such instances are seen in the demand for ‘micro-hospitality', where travelers are free to curate their own private getaway at a pared-down price, to the 48% of luxury travelers wanting exclusive experiences, and the growth of ‘experience agents’ who deliver bespoke guest experiences during their stay.
However, there is potential for improvement in connectivity between hotels and travel bookers. Fernando Vives, Chief Commercial Officer & Management Board Member at Minor Hotels Europe & Americas, also mentioned at our recent HBX Group MarketHub that while travelers can choose rooms based on preferences at check-in, partnering with a TravelTech specialist, like Bedsonline and therefore our parent company HBX Group, could further streamline data flow and enhance the current personalisation opportunities within this sector.
For example, while guests can and have been able to select a room during check-in, the industry can offer even more personalized experiences and cater to the unique circumstances of each guest, to uplift every experience and thus the emotional connection to that brand or hotel during their stay.
There are many practical ways machine learning is changing the game in travel, especially when it comes to pricing, demand forecasting, and making operations smoother.
For example, Google’s DeepMind is helping airlines optimize flight paths to reduce contrails, while intercity rail and bus companies are using AI to boost fuel efficiency. In baggage handling, AI-powered image recognition is making the process a breeze, significantly cutting down on delays and the hassle of lost luggage.
From an operations standpoint, AI chatbots are a real lifesaver for human service teams, available 24/7 to tackle simpler queries and freeing up staff to focus on the more complex issues. These chatbots help improve the customer experience by providing instant assistance right when it’s needed.
At Bedsonline, we have our very own AI chatbot, Olivia, which is designed to offer quick and smart answers to your questions about our products and services. Our virtual assistant is on hand to offer increased support with technical queries, from making bookings to using our comprehensive self-service tools, as well as in-destination support even during emergencies.
Olivia uses the ‘eight building blocks of conversational AI’ to ensure intelligent and contextually accurate support, streamlining operations and reducing stress throughout the entire travel booking journey.
At HBX Group’s MarketHub, Rebby John, Senior Director of Sales Engineering at Salesloft, pointed out that customers are likely to spend 67% more when they have a great sales experience. While Ali Ozbay, VP of Marketing & Communications at All Inclusive Collection and Rixos Hotels, highlighted how travelers nowadays want exclusive and personalised experiences, moving away from that old one-size-fits-all approach.
Hyper-personalization has an impact right from the 'dreaming' phase of a customer's journey, and targeted ads can help a business resonate with specific audiences to build that all-important connection and cater to their individual needs.
Businesses can also craft unique online experiences for different client types by leveraging smart data platforms to create personalized offers based on real-time customer behavior. This ensures that travelers receive tailored messages, boosting the chances of closing the deal!
Connecting supply and demand is just half the battle; you also need to make sure you reach the right audience at the perfect moment with the right product! Intelligent campaigns help you do just that.
At Bedsonline, we use advanced algorithms that predict which properties and conditions will suit your customers best, while our dedicated experts keep an eye on how well they perform. This aspect of hyper-personalization is super important for travel businesses, as with AI-driven strategies, you get promotions that are relevant to your audience, giving you an edge in this competitive space.
By tapping into strategic growth opportunities through our intelligent recommendation tool, Insights, we can open exciting new possibilities for offering travelers relevant, enticing trips and experiences.
These recommendations are data-driven and specifically tailored to your market's needs, based on:
This helps ensure you're always adopting that ‘right product, right place, right time’ approach in your travel marketing, making each communication resonate more with your audience.
Research shows that a staggering 92% of shoppers are open to sharing their personal information in exchange for discounts, and trust and transparency in how that data is used. Once collected, this important customer data can be used creatively to significantly boost customer satisfaction and brand reputation.
A great example is British Airways and Virgin Atlantic, who decided to remove 'ladies and gentlemen' from announcements, using customer and data insights to drive inclusivity; Virgin Atlantic also offers gender-neutral options during booking.
Creative, data-driven decisions like these make a huge difference to the strength of customer relationships and enhance brand loyalty through acceptance and visibility. Customers can feel valued through thoughtful marketing strategies, like personalized promotions and considerate emails regarding promotional exclusions.
Here are some important factors to consider when creating personalized offers for your clients:
As AI gets more involved in the travel scene, businesses can use it with big data to boost customer loyalty. Travel experience providers will be able to leverage customer data on loyalty programs, credit card perks, and insurance coverage to create personalised travel experiences.
Travel agencies can reap the rewards from interconnected platforms like Bedsonline, ensuring competitive offerings and frictionless booking experiences as a result of data-driven, intelligent campaigns, tools and travel booking platforms, alongside an expansive portfolio.
Using AI to create and price new trip itineraries while making online bookings easier is also key. It turns out that about 80% of travelers prefer to book their trips online, 56% want to sort out activities and experiences in advance, and 60% of travelers focus on booking with one brand or credit card to get the most loyalty points.
This emphasises the importance of offering comprehensive travel experiences for end travelers, and highlights the opportunities available when using intelligent tools and solutions to personalize these booking experiences in order to capture demand!
Overall, AI offers valuable chances to leverage data, analytics and business intelligence from various sources, to anticipate demand, and tailor offerings accordingly.
Companies that address this delicate balance, offering reliable, personalized, and secure travel experiences, will be the ones who shape the industry and benefit from it.
However, if you’re interested in exploring how we at Bedsonline offer intelligent, data-driven growth opportunities for agencies thanks to our powerful booking tools, expert destination teams, intelligent campaigns and booking opportunities, and more, then explore why travel businesses across the industry benefit from a partner like us here!
