Generative AI Revolutionizes Summer Travel Planning, New Oliver Wyman Report Says
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
