2024 Vision: Tech trends that will revolutionize travel and hospitality

Before you know it, artificial intelligence could
significantly influence your success. 

AI-influenced revenue in the travel industry has risen
from 9% in 2018 to 21% in 2021. In 2024, this number is expected to rise to 32%. In other
words, within the next year, nearly one-third of your annual revenue could come
from artificial intelligence.  

AI isn’t the only tech trend that should be on your radar for 2024. Travel
and hospitality are poised to undergo a major change as technology modernizes
the entire industry. To stay competitive, you’ll need to be prepared.

In this article, we’ll explore the top tech trends that are set to redefine
travel and hospitality in 2024, focusing on personalization’s growing
influence, AI’s unstoppable rise and how conversational commerce will unlock
new opportunities for businesses like yours. 

Trend 1: Personalization will be expected everywhere 

For modern travelers, tailored experiences are no longer a luxury but a
necessity. 80%
of consumers demand personalized experiences from retailers, and the tourism industry
is no exception. From pre-booking to post-stay interactions, customers expect
every touchpoint to align with their preferences. 

This wasn’t always the case. While personalized
touchpoints were appreciated pre-pandemic, it wasn’t a necessity for travelers. Now
that global
tourism is back to pre-pandemic levels, you must leverage personalization to stand out and provide an impactful
experience that appeals to customers on a psychological level and intensifies
brand loyalty.

Personalization is made easy with AI, which can customize just about anything. Whether you’re creating web and
email content, recommending products or setting up targeted ads, AI
personalization identifies the small details that make customers feel valued and
understood, so you can use that data to increase revenue and decrease
churn.

AI personalization also paves the way for holistic
personalization. By taking into account every single customer touchpoint, holistic
personalization allows customers to experience seamless, unified and highly
personalized service across any channel. Every client is guaranteed a unique
interaction.

Best of all, you don’t have to wait until a customer makes a purchase to
start personalizing their experience. Every interaction with your brand is an
opportunity to gather valuable data that enables detailed
personalization. For example, by tracking the types of vacations a visitor browses during
a website visit, you can suggest similar vacation packages within the same
browsing session, potentially leading to a booking.

Trend 2: AI is here to stay

Artificial intelligence, particularly generative
AI, is powering a revolution for travel and hospitality companies. Generative
AI uses training data to create new content, like images and text. It can even
build visually stunning virtual experiences, such as personalized travel
itineraries that streamline the booking process. 

Generative AI has the power to contribute
$4.4 trillion to the global economy. Not to mention, one-third
of travelers say that they are open to using a generative tool like ChatGPT to plan
a getaway. Finding ways to use this technology now will unlock opportunities
for your business and help you keep up with customer expectations. 

Another user experience game changer is AI-powered
site search. AI-powered site search uses natural language processing (NLP) and machine
learning to read user queries and analyze the intent behind them. Then the
tool delivers highly relevant search results that speak to exactly what your
customer is looking for. 

Powerful AI is not only making the online experience better. It also merges
what happens online and in person to create an even better experience for customers. In the travel and
hospitality industry, this could look like:  

• A loyalty program that rewards customers for online booking and on-site
  spending during the trip 
• Predictive customer service, in which a customer is offered a discount upon
  check-in for a service that was viewed online but not booked 
• A faster check-in process powered by data from a prior online experience 

Finally, audience segmentation becomes more accessible and impactful with
AI. By analyzing vast amounts of data, AI can uncover hidden patterns and
preferences. This helps travel and hospitality companies create personalized
marketing campaigns more likely to result
in a conversion at just the right time. So instead of sending the same message to everyone, you can deliver a
relevant and tailored message on the channels your customers are using the most
and at the time when they’re most likely to read it.

Trend 3: Conversational commerce will be big 

In 2024, conversational commerce is set to transcend its status as a
buzzword, emerging as a potent tool for businesses in the travel and
hospitality sector.  

Conversational
commerce uses NLP to facilitate interactions between customers and businesses. In
the travel industry, this means providing a dynamic customer experience in
which travelers can seamlessly communicate with your travel company using the
same channels they use to chat with friends or family. 

Contrary to popular belief, conversational
commerce extends far beyond chatbots. While chatbots help provide quick responses to common inquiries,
conversational AI can facilitate interactions in many ways: 

• Messaging apps, like Facebook Messenger, are an ideal avenue for customers
  to make bookings, inquire about travel details or seek recommendations.
• SMS messaging is ideal for soliciting feedback and publicizing promotions.
• Voice assistants let you access travel information and make hands-free
  reservations using only your voice — nearly
  20% of voice speaker owners use their devices to research flights and hotels. 

Conversational commerce is highly versatile and empowers businesses to meet
customers where they are, whether they prefer engaging with your business on
WhatsApp, exchanging a few text messages or speaking to a virtual assistant.
This flexibility makes it easy for customers to contact you in a way that is
comfortable for them, boosting the accessibility and convenience of your
customer experience.  

When conversational commerce joins forces with generative AI, remarkable
things happen. The latest wave of e-commerce tools promises to make shopping
experiences more intuitive and engaging than ever before. In 2024, keep an eye
out for conversational
shopping platforms that leverage cutting-edge technology to reimagine how your customers book
their travel plans. 

Innovating travel experiences with technology 

Technology is rapidly transforming the travel and hospitality industry,
empowering businesses to craft personalized and unforgettable experiences for
guests through hyper-personalized touchpoints, AI-powered
tools and conversational commerce. With technology on your side, you can create
seamless interactions with your customers, anticipating their needs, exceeding
their expectations and elevating their travel experience in ways that were
previously believed impossible.