The year 2024 is anticipated to be marked by the continued influence of generative artificial intelligence (AI) in the travel industry. Christine Wang, managing director of Lufthansa Innovation Hub GmbH, suggests that while generative AI companies secured significant venture funding, the verticalized travel startups in the space faced challenges in raising substantial capital.
The refinement of impactful implementations, such as itinerary planning for online travel agencies (OTAs), AI travel assistants, and hospitality customer support, is expected in 2024. Additionally, the battle against fake reviews is evolving, with travel review platforms needing to innovate to counter the new threats posed by generative AI.
Amit Saberwal, CEO at RedDoorz, predicts a growing demand for AI integration and digital advancements, especially among independent hotel owners. Personalization and localization using scalable AI for customer engagement are expected to play a crucial role in meeting the evolving needs of the market.
Ivan Saprov, CEO of Voyagu, highlights the advancement of ChatGPT technology, foreseeing improved integration with fintech products. This includes features such as dynamic changes to travel dates, personalized booking advice, and flexible payment options. Both OTAs and travel providers are actively addressing pricing concerns and seeking ways to enhance personalization through advanced ChatGPT interactions.
Modernized travel processes
Spencer Hanlon, global head of travel payments at Nium, expects a surge in demand for modern payment solutions in emerging markets, particularly in the Asia-Pacific region. As long-haul travel rebounds, challenges related to processing increasing volumes on legacy systems and processes are anticipated.
Kevin King, COO for Shiji Group, notes an increased receptivity towards digital self-service options among hotel guests, signaling a broader acceptance of change catalyzed by recent disruptions. This trend presents an opportunity for agile hotel industry leaders to accelerate digital transformation initiatives.
Dana Dunne, CEO of eDreams ODIGEO, emphasizes the fusion of accessible information and AI in broadening travel choices. Social media platforms like TikTok are influencing travel preferences by inspiring exploration of diverse global destinations.
Sustainability takes center stage
Kenneth Purcell, CEO at iSeatz, predicts continued strong demand for travel in 2024, with a renewed emphasis on sustainable travel. A survey conducted by iSeatz reveals that 71% of consumers intend to travel more in 2024 than in 2023, with 54% considering sustainability more important in their travel and loyalty decisions over the past three years.
Johnny Thorsen, VP of business development for content distribution at Spotnana, anticipates a shift from soft focus to concrete actions in sustainable travel. Travel buyers are expected to introduce internal carbon tax models at scale, influencing decisions toward environmentally friendly options.
Charlie Sultan, president of Concur Travel, foresees a combination of costs and benefits from industry trends in 2024. Corporate initiatives focusing on sustainability and diversity are expected to extend to travel programs, placing higher-purpose responsibilities on various departments.
Personalized travel experiences
Nils Chrestin, CFO at GetYourGuide, predicts a shift towards trusted digital platforms for discovering locations, driven by content from influencers and verified customer reviews. Consumers will increasingly seek personalized travel options for a less fragmented and more flexible planning process.
Colin Smyth, VP and GM at Flywire expects a rise in demand for personalized, immersive vacations as consumers prioritize unique experiences over conventional ones. The survey conducted by Flywire indicates an 89% increase in demand for experiential travel, especially in Australia and Italy.
Kristin Dorsett, CPO at Viator, notes the sustained growth in outdoor and active experiences, with trends like nature tours, biking, and hiking surpassing average growth rates. The continuation of this trend into 2024 is anticipated.
Distribution trends
Cara Whitehill, founder of Unlock Advisors, predicts a significant shift in travel distribution dynamics, with technology and commercial innovations favoring suppliers and buyers over traditional intermediaries. Transparency in pricing and service capabilities is expected to challenge intermediaries to prove their value.
Dane Molter, VP of Product at Navan, anticipates continued evolution in airline incentive models, with New Distribution Capability (NDC) influencing programs and contracts. The NDC-style distribution wave is also predicted to impact hotels, leading to distribution changes in 2024.
Other industry predictions
Charlene Leiss, president of Flight Center Travel Group Americas, expects the momentum of business travel resurgence to continue in 2024, especially among small and medium-sized enterprises. The ‘bleisure’ travel trend, combining business and leisure travel, is predicted to grow.
Mia Morrisset, principal at Inovia Capital, foresees increased financing rounds to strengthen growth and efficiency in travel and hospitality technology companies. Market consolidation through mergers and acquisitions, innovation, and personalization will be key areas of focus.
Kei Shibata, co-founder and CEO of Venture Republic Group, predicts India will replace China as the hottest outbound travel market, while Japan will become the hottest international destination.
Margot Schmorak, CEO and co-founder of Hostfully anticipates more innovation in travel experiences tailored to women, including family-friendly travel planning and amenities addressing the unique needs of female travelers.
Source: https://www.cryptopolitan.com/travel-industry-outlook-2024-ai-dominance/