Today’s travel agencies are feeling the need to adapt to the ever-growing influence of the latest technologies in order to enhance their services and achieve better results. The travel industry landscape has rapidly changed, and now advanced booking systems and AI-driven customer service are not just exciting new tools, but yet another standard to meet.
We’ve contacted a travel agency software development company to learn more about the ways modern travel agencies utilize the latest technologies in their daily work. Let’s see how these solutions are reshaping travelers’ journeys.
Artificial intelligence
It is obvious just how increasingly important AI becomes each day, and the travel industry is also affected by it. Travel companies have already found multiple ways to utilize the technology, and will only find more in the future.
Currently, one of the most promising ways to use AI is dynamic pricing. This tool uses machine learning to maximize travel businesses’ profits by offering the right price to the right customer at the right time. Dynamic pricing relies on real-time customer behavior data to ensure competitive rates and improved revenue management.
For another example, AI-based travel itinerary generators are on the rise. This technology aims to provide customers with personalized travel plans based on their preferences, and while it is still evolving, it clearly has the potential to help them save time and money. It can also easen the workload of travel agents, enabling them to focus on different tasks.
Automation
Automation tools are always welcome by any business, and they are currently on the rise in the travel industry due to the recent pandemic. COVID-19 and multiple travel restrictions forced travel companies to find new ways to work efficiently and in a cost-saving manner, and that is where automation tools shine. Automation has become an integral part of the industry, and travel agencies rely on its capabilities for email marketing and e-signatures in their daily operations.
In addition to streamlining communication and documentation processes, automation tools also enhance customer experience — quick and reliable responses and confirmations are always welcome. As an added benefit, automation frees up agencies’ staff to focus on more complex tasks, leaving repetitive manual labor in the past.
Chatbots
Chatbot technology isn’t exactly new, but it has never been as advanced as it is now. Chatbots of the past were nothing more than simple tools capable of only answering a few pre-determined general questions. Their modern versions are imbued with the power of natural language processing and generative AI, and can provide much more helpful and human-like responses.
AI-powered chatbots can help with anything travelers need: from booking flights to finding the most suitable hotel. They can also offer real-time information based on user preferences, location and context — all in a matter of seconds.
Needless to say, advanced chatbots are extremely beneficial for travel agencies, since they reduce operational costs while increasing efficiency and customer satisfaction. But even that is not the full extent of their capabilities — chatbots can also provide lots of data on customer behavior, enabling agencies to optimize their marketing strategies and services in general.
For example, just recently Expedia has debuted its AI assistant Romie, designed to help travelers with planning, shopping, and booking, acting as travel agent, concierge and personal assistant. The company promises that it will also learn progressively, memorizing customer preferences and offering exactly what they need.
Contactless payments
Contactless payments are one of the core gestures for any travel agency software in 2024, and their importance cannot be overestimated. While initially the desperate need for this technology emerged during COVID-19, it has now become a standard for the industry.
Enabling travelers to pay on-the-go, using mobile devices or contactless cards provides an unparalleled experience, significantly enhancing convenience. Contactless payments are quick, easy, secure, and reliable, and all of these features make them irreplaceable for modern travel companies.
Contactless payments also enhance agencies’ financial management, allowing them to track transactions in real-time and simplify the reconciliation process. Contactless payment options offer a seamless and efficient payment experience that builds customer trust and loyalty.
Mobile apps
According to Statista, global revenue from travel apps is going to increase up to 60% in the next three years, and that alone tells just how crucial modern mobile applications are for travel businesses. Think of any industry giant, and you’ll soon find that they rely heavily on their app. Airbnb, Booking.com, and Expedia continue to invest heavily in their travel application development, and it seems like they are making the right call.
Modern apps are a perfect travel companion that is always kept in a traveler’s pocket and can be easily accessed to resolve any issue regarding their journey. Apps allow for full access to travel information and services at all times, even without the need for internet connection, and they also provide personalized experience by providing filters, preferences and location-based services.
On top of that, mobile apps’ unique features like push notifications and loyalty programs are effective at enhancing customer engagement and loyalty. Tailored recommendations and exclusive deals create a more engaging experience.
From a business perspective, an app is a direct communication channel that helps agencies to stay connected with their customers at all times, which encourages repeat bookings as a result.
Personalization
Personalization is key for any modern travel agency. It is now expected from any travel business, and travelers are so accustomed to tailored experiences that they won’t settle for anything else.
This is where advanced data analytics and machine learning come into play. Understanding unique travelers’ needs and offering personalized services can make travelers feel valued and understood, and that is key for increasing their loyalty to your company.
Another benefit of personalization is the fact that it streamlines the booking process by making it more intuitive and efficient for customers, ensuring that they won’t have to deal with any obstacles in the process. And don’t even get us started on how efficient personalized marketing campaigns are for agencies’ conversion rates.
Conclusion
Technology is shifting the way the travel industry functions, and travel agencies that embrace AI-driven personalization, contactless payments, and other new solutions, are already increasing their efficiency and improving customer satisfaction. Enhancing and evolving with technology is key for any company that wants to meet the evolving traveler demands.
