Generative AI is Changing the Game for Summer Travel Planning, Says New Report
Generative artificial intelligence (AI) is revolutionizing the way consumers approach vacation planning just in time for summer, according to a recent report from consulting firm Oliver Wyman. The report, titled Why Generative AI Is a Game Changer for Leisure Travel, highlights the growing popularity of AI technology in the leisure travel sector. A significant 41% of Americans and Canadians surveyed have already utilized generative AI for trip inspiration or itinerary planning, marking a notable increase from 34% in August 2023.
One key finding from the report is the potential impact on online travel agencies (OTAs) in the US market. If travel suppliers continue to lack investment in generative AI capabilities, OTAs could see a significant boost in their booking share by up to 17 percentage points by 2029. This shift could translate to over $2 billion in additional commissions for OTAs from suppliers.
Lawrence Burka, a principal at Oliver Wyman, emphasizes the benefits of generative AI for consumers, noting that it helps alleviate information overload and streamlines the planning process by providing personalized recommendations. Despite the clear advantages for consumers, many travel brands have been slow to develop customer-facing generative AI tools, missing out on opportunities to enhance customer loyalty and drive direct bookings.
The survey conducted by Oliver Wyman included nearly 2,100 consumers in the United States and Canada, focusing on individuals who had booked leisure travel since 2023. The findings shed light on the increasing adoption of generative AI in the travel industry and the implications for both consumers and businesses.
Oliver Wyman is a global leader in management consulting, offering specialized expertise in strategy, operations, risk management, and organization transformation. With a team of over 7,000 professionals worldwide, the firm collaborates with clients to optimize their business operations and seize new opportunities for growth.
As generative AI continues to reshape the landscape of summer travel planning, consumers can expect more personalized recommendations and streamlined booking processes. With the potential for significant growth in the online travel market, both travel brands and consumers stand to benefit from the evolving capabilities of AI technology in leisure travel.
