NEW
YORK, May 24, 2024 /PRNewswire/ -- Generative
artificial intelligence (AI) has rapidly gained traction in leisure
travel transforming the way consumers approach vacation planning
just in time for summer, according to a new report from consulting
firm Oliver Wyman, a business of Marsh McLennan (NYSE: MMC).
The report, titled, Why Generative AI Is a Game Changer for
Leisure Travel found that 41% of Americans and Canadians
surveyed have used generative AI for either trip inspiration or
itinerary planning, an increase from 34% in August 2023. Oliver
Wyman's analysis found that online travel agencies (OTAs)
could increase their booking share of the US online travel market
by up to 17 percentage points by 2029 if travel suppliers continue
to forgo investment in generative AI capabilities. This potential
shift could result in OTAs reaping an incremental $2 billion-plus in commissions from
suppliers.
"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."
Additional key findings from the report include:
- Happy Travelers – For travelers who used generative AI
tools, 82% are likely to use it again to make travel plans in the
future. Generative AI has particularly resonated with younger
travelers, with 59% of those under 45 years old utilizing these
tools for travel planning. However, 31% of travelers 45 years old
and older are also using it. Additionally, over three-quarters of
consumers are happy with the travel recommendations provided by
generative AI tools, with high conversion rates for booking the AI
suggested trip option.
- Amenities and Add Ons – Of the more than 90% of
recent users who booked generative AI-produced travel plans, many
followed through with booking specific activities (44%) and dining
suggestions (43%) recommended by the tool.
- Loyalty -- Loyalty members of travel brands have
shown a strong affinity for generative AI, with 45% of elite
loyalty members using generative AI recently to plan trips. The
survey also revealed that generative AI is popular among those who
take cruises, with 54% of respondents who had taken at least one
cruise since 2022 recently using generative AI for travel
planning.
About the survey
The survey was conducted among
nearly 2,100 consumers in the United
States and Canada in March
of 2024. To qualify for the survey, respondents had to have booked
a roundtrip flight or lodging stay for leisure purposes since the
beginning of 2023, or a cruise for leisure purposes since the
beginning of 2022.
About Oliver Wyman
Oliver Wyman is a global leader in management
consulting. With offices in more than 70 cities across 30
countries, Oliver Wyman combines
deep industry knowledge with specialized expertise in
strategy, operations, risk management, and organization
transformation. The firm has 7,000 professionals around the world
who work with clients to optimize their business, improve
their operations and risk profile, and accelerate their
organizational performance to seize the most attractive
opportunities. Oliver Wyman is a business of Marsh McLennan
[NYSE: MMC]. For more information, visit www.oliverwyman.com.Follow
Oliver Wyman on X @OliverWyman
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SOURCE Oliver Wyman