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.