AI in travel is a balancing act
Within the travel sector, the positive impact of AI is palpable – AI-powered search engines have been known to increase hotel bookings by up to 33 per cent. With 71 per cent of consumers expecting personalised travel experiences – something that has gained huge traction since 2021, AI’s role in customising travel services is now accelerating this growth. That said, the adoption of AI must be approached with careful balance.
Impact of AI on the travel experience
Over the last two years, OTAs, travel platforms and businesses have rapidly integrated AI into their service offerings. Often, AI presents itself as a customer-facing planning tool – a critical feature given that 64 per cent of Gen Z and millennials find vacation planning time-consuming.
Behind the scenes, AI leverages data to provide travellers with the best deals and experiences, tailored to their preferences. This has been successful, with more than half of Gen Z and millennials agreeing that AI has helped them save both time and money. In fact, close to six in 10 of them feel that AI introduced them to more interesting itineraries.
Beyond planning, AI-powered tools empower travel retailers to track elements like miles, loyalty points, and other benefits, thereby boosting operational efficiency. At azgo, for instance, we use AI to expedite cashback validation, allowing users to enjoy their rewards more quickly.
Studies suggest that AI could boost tourism businesses’ revenue by 10 per cent and reduce costs by 15 per cent. For emerging travel players, these improvements and efficiencies could significantly benefit both their operations and customer satisfaction.
Not every travel experience needs AI
Despite AI’s advantages, certain elements of the travel experience should not – and often cannot – be replaced by technology, particularly when it comes to customer service. While AI-driven chatbots can handle basic support needs with AI-generated responses, they cannot replicate the human connection that customers seek during stressful situations. Research shows that 30 per cent of consumers will take their business to a different brand, abandon their purchase, or tell their friends and family about their poor experience, after an unsatisfactory experience with a chatbot.
When travel retailers rely solely on AI for customer service, they risk damaging the customer experience and relationship that are crucial for long-term loyalty and purchasing decisions. At azgo, our team of travel veterans has observed this pain point first-hand, leading us to adopt a strategy where AI is used primarily for backend processes and generating automated messages while human touch is prioritised during customer service operating hours.
Balancing innovation with personalisation
As an industry, it is more important than ever to be mindful of how we can meet our customers’ needs. While AI can unlock smarter decisions and boost efficiencies, travel remains a deeply personal experience. Therefore, it is essential that we maintain a balance – leveraging AI where it adds value while preserving the human element that makes travel truly memorable.
Kuramathi Maldives welcomes new two new managers
Kuramathi Maldives has made two new appointments: Bert Goebel as general manager, and Tom Osborne as sustainability manager.
With nearly 30 years of experience in the luxury hotel, resort, and cruise ship industries, Goebel brings a wealth of expertise and perspective to lead Kuramathi’s team. His extensive experience spans several countries and continents, where he has held influential roles at Sandals Resorts at different Caribbean Islands, and Oceania Cruise Lines in the US. Prior to joining Kuramathi Maldives, he was vice president of global hotel operations at Scenic Group in Zurich.
In his new role, Osborne will lead the resort’s sustainability initiatives, spearheading initiatives to reduce staff food waste and minimise single-use plastics through reusable bottles. His responsibilities include ensuring compliance with Travelife standards, collaborating with the engineering team to optimise energy use, and managing significant projects such as a new coral restoration programme on the resort’s house reef and the construction of a new facility for the Maldives Coral Institute.
Before joining Kuramathi Maldives, he worked for organisations in Costa Rica, Saudi Arabia, and Kenya, where he gained valuable insights into marine conservation. His education background in marine biology equips him with the expertise needed to address broader sustainability challenges and drive impactful environmental programmes at the resort.
Accor announces two global brand presidents
Accor has appointed two seasoned executives to helm its Premium, Midscale & Economy (PM&E) brands.
Benoît Racle joins Accor as the global brand president for Accor’s Premium brands, bringing with him over two decades of experience in hospitality, brand management, global operations, marketing and commercial ventures. Having honed his skills with Starwood and W, Racle will oversee the strategic direction and growth of the group’s premium brands in his new role.
Jean-Yves Minet has been appointed global brand president for Accor’s Midscale & Economy brands. With over 25 years of executive and operational experience in brand building, Minet forged his career in the beauty industry. Joining Accor, he will focus on driving brand growth by leading the brand vision, positioning, and operating models of Accor’s economy and midscale brands.
Bali seeks new hotel development curbs in the crowded south
The Bali government is seeking the approval of the central government in Jakarta to temporarily halt the construction of new hotels and villas in its southern region, in a move to curb overdevelopment ills.
The planned moratorium on such developments will target the Sarbagita region, encompassing Denpasar, Badung, Gianyar, and Tabanan, the island’s acting governor Sang Made Mahendra Jaya told local media.
However, Sang Made did not specify how long the suspension will be for.
The local press said tourism and creative economy minister Sandiaga Uno has acknowledged the proposal, which would be reviewed by both his ministry and president Joko Widodo.
Sandiaga emphasised that the moratorium has the support of academics and tourism stakeholders, and indicated that the central government might solely manage future building permits in Bali while local authorities play a consultative role.
Tourism New Zealand’s campaign with Klook targets Malaysian Muslims
Tourism New Zealand (TNZ) has partnered with experience provider Klook to launch the Jalan-Jalan Muslim-friendly NZ campaign, aimed at attracting Malaysian Muslim travellers to New Zealand.
Translated to English, the campaign reads as ‘explore Muslim-friendly New Zealand’, and is an initiative that marks a significant step in enhancing the travel experience for Malaysian Muslim travellers in New Zealand.
Running from September 6 to 22, the campaign allows travellers to conveniently book experiences in New Zealand through Klook, which include halal and Muslim-friendly food options.
Gregg Wafelbakker, TNZ’s general manager for Asia, noted the importance of Malaysia as a visitor market for New Zealand: “Arrivals from Malaysia to New Zealand have been growing, with over 30,000 visitors for the year ending June 2024, a 31.6 per cent year-on-year increase.”
TNZ’s research shows that Malaysian visitors are drawn to New Zealand’s stunning landscapes, friendly locals, wildlife experiences, and self-drive holidays.
Speaking at the campaign’s launch in Kuala Lumpur, Wafelbakker stated: “We are committed to providing an inclusive and welcoming environment where Muslim visitors can enjoy our beautiful landscapes and unique experiences with ease. This collaboration demonstrates our dedication to understanding and meeting the needs of this important market.”
TNZ hopes the campaign will drive traffic from Malaysia, particularly during off-peak seasons like spring, winter, and autumn, which align with key Malaysian travel periods such as Hari Raya in 2025 and school holidays in May, September, and October. Wafelbakker noted that while New Zealand is a year-round destination, the off-peak seasons offer fewer crowds and exceptional experiences like whale watching, stargazing, and outdoor adventures.
Klook’s general manager for Singapore, Indonesia, and Malaysia, Sarah Wan, said: “New Zealand is a destination rich in natural beauty and cultural experiences, and we’re excited to make it more accessible to Muslim travellers from Malaysia. This partnership reflects our shared commitment to providing seamless, enjoyable travel experiences that cater to the diverse needs of our customers.”
Singapore Tourism Board, GD World Cruises to offer customised cruise routes and packages
The Singapore Tourism Board (STB) and GD World Cruises, a brand under ICE Holidays, have joined forces to offer more convenient and diverse travel options for visitors from Malaysia through the latter’s exclusive packages and selected cruise routes.
The partnership aims to offer consumers attractive and competitive prices so as to curate an ideal fly-cruise-stay experience.
STB and GD World Cruises have launched a series of new travel products, including selected cruise itineraries departing from Singapore on Resorts World Cruises and Royal Caribbean’s Anthem of the Seas, fly-cruise-stay packages, and customised cruise experiences that cater to key audience segments such as families.
Packages will include cruise cabins, flight tickets, hotel accommodation, and transfer services in Singapore.
“Singapore offers great value for both time and money, as families from Malaysia can maximise their precious moments together with peace of mind,” said Terrence Voon, STB’s executive director of Southeast Asia.
Before boarding the cruise, visitors can explore Singapore’s landmarks and attractions around Marina Bay – from the Singapore Flyer and Gardens by the Bay to Marina Bay Sands’ SkyPark Observation Deck – and beyond.
ICE Holidays managing director, Mita Lim, added: “By joining forces with STB and GD World Cruises, we can now offer our customers a truly unique and unforgettable travel experience. The fly-cruise-stay packages perfectly cater to the needs of multigenerational families, providing them with the convenience, comfort, and rich experiences that modern travellers seek. We look forward to bringing these exclusive offerings to the Malaysian market.”
Cebu Pacific celebrates 10 years of flying to Australia
Cebu Pacific is celebrating the airline’s 10th anniversary of flying to/from Australia with prices from as low as A$199 (US$132) one-way all-in from Melbourne to Manila and from A$209 one-way all-in from Sydney to Manila.
The airline launched its Australian services in September 2014 and currently offers five flights a week to Sydney and three flights a week to Melbourne.
To boost capacity on the Australia-Philippines route, Cebu Pacific will move to daily services to Sydney from December 1, and increase to four services a week to Melbourne from November 23.
Travellers can take advantage of Cebu Pacific’s extensive domestic network to fly to 35 destinations once they arrive in Manila.
For more information, visit Cebu Pacific.
Affluent travellers drive nearly half of all spend on experiences: Arival
A new report from Arival, The Affluent Experiences Traveler, showed that high-net-worth travellers – with an annual income of US$150,000 or more – are the driving force behind the tours, activities, and attractions market, generating 50% of total traveller spend on day tours, and more than 40% of all spend on activities and attraction tickets.
The report uncovers the unique preferences and behaviours of this high-value traveller segment, which is increasingly placing experiences first in their travel planning and priorities. It highlights how hotels, destinations, airlines and travel agencies, as well as travel experiences companies, must pay close attention to this critical and growing segment of traveller population.
The report is part of the 2024 US Experiences Traveler study that surveyed travellers across various income levels to understand their behaviours and preferences when it comes to booking and experiencing tours, activities, and attractions.
The report unveiled the following key findings.
Affluent travellers account for a disproportionate share of bookings and spending in the experiences sector. While representing only 21% of all travellers, they are a third of bookings and 46% of total spending on tours and activities.
Young affluent travellers aged 18-44 are especially impactful, spending 50% more on activities than other travellers. Moreover, experiences play a crucial role in destination selection for the majority of affluent travellers across all age groups, with 77% of older affluent travellers and 74% of younger affluent travellers saying that available activities and experiences were a primary reason for choosing their holiday destination.
Affluent travellers are more likely to plan and book experiences in advance – often before booking other elements of their trips. 59% of younger affluent travellers and 27% of older affluent travellers plan and book experiences more than four weeks in advance, compared to 22% of middle-income travellers and 28% of lower-income travellers.
As for flights and accommodation, older affluent travellers (77%) prefer to plan and book these more than four weeks in advance, whereas younger affluent travellers (70%) wait to do this less than a week from the date.
Younger affluent travellers are particularly engaged in the experiences market and account for 67% of bookings and 70% of spending among affluent travellers. Furthermore, sustainability and personal values are key factors in experience selection for affluent travellers. 87% of younger affluent travellers prioritise brands and products that align with their values, compared with 56% in other income groups; 81% of young affluent travellers also say that sustainability influences their experience choices, compared with 44% of other travellers.
The Affluent Experiences Traveler report also highlights the growing importance of social media and online reviews in the decision-making process for affluent travellers. Younger affluent travellers, in particular, rely heavily on platforms like YouTube, Instagram, and TikTok for research and inspiration.
Douglas Quinby, CEO and co-founder of Arival, commented: “Creators and sellers of tours, activities and attractions must have a clear strategy to meet the expectations of an increasingly important affluent traveller, who is accounting for a greater share of overall travel and experiences demand. Every travel organisation – from accommodation and transportation to destinations and travel sellers of all shapes and sizes – must start thinking experiences first. Their most important customers already are.”
Plaza Premium Group unveils premium VIP lounge at HKIA
Plaza Premium Group (PPG) has launched a new lounge concept within Plaza Premium First at Hong Kong International Airport (HKIA). Named the Infinity Room, this brand-new premium VIP passenger lounge offers a sanctuary-like space for a selected class of elite travellers.
The recently reopened and renovated Infinity Room is nestled within Plaza Premium First, conveniently located adjacent to Gate 1 at HKIA. The secluded space serves as an extension to the personalised, all-inclusive lounge reserved for invited guests, such as airline partners’ First Class and Business Class travellers.
The lounge also welcomes walk-in guests, who can purchase full access to the first-class service.
Serving a round-the-clock dining experience, the all-day menu at Infinity Room spotlights local-inspired specialities blending Chinese and Western influences. Vegetarian and gluten-free choices are available, as well as a wide beverage selection. Menu options rotate throughout the day.
Guests can expect round-the-clock personalised service, shower room facilities, complimentary 10-minute neck and shoulder massage, buggy service straight to boarding gate, and more.
PPG hopes to expand the Infinity Room concept in other global destinations.
WTTC’s 2024 Economic Impact Trends Report has revealed the US as the world’s most powerful travel and tourism market, contributing US$2.36 trillion to the nation’s economy last year.
Despite the slow return of spending from international travellers, the US keeps pole position, with almost double the economic contribution of its nearest rival.
Following a record-breaking year for travel and tourism, the sector continues to be the backbone to many country economies, while supporting millions of jobs globally.
The latest report from the global tourism body reveals China as the world’s second most powerful market with a GDP contribution of US$1.3 trillion in 2023, underscoring its impressive rebound, despite the late reopening of its borders.
Germany secured the third spot with a US$487.6 billion economic contribution, while Japan, which in 2022 was in fifth place, jumped up to fourth position, contributing US$297 billion.
The UK completes the top five contributing US$295.2 billion.
France retained its sixth position with a contribution of US$264.7 billion, followed closely by Mexico at US$261.6 billion, while India came in eighth, rising from a previous 10th position, with US$231.6 billion. Italy and Spain complete the top 10, contributing US$231.3 billion and US$227.9 billion, respectively.
However, over the next decade, WTTC predicts China will become the biggest travel and tourism market with India moving up to fourth position.
These shifts illustrate the dynamic nature of the global travel and tourism sector, with emerging markets gaining ground and traditional powerhouses maintaining their strongholds.
The report also highlights the countries experiencing the highest annual growth rates in their Travel & Tourism contributions to GDP.
In 2023, China’s sector surged led with an astounding year on year growth of 135.8%, while other Asian countries, such as Hong Kong, Malaysia, and the Philippines recovered soon after the removal of travel restrictions.
According to the report, many key destinations will profit from a surge in international spending this year compared to pre-pandemic levels, with Saudi Arabia, up 91.3% compared to 2019%, Türkiye (+38.2%), Kenya (+33.3%), Colombia (+29.1%) and Egypt (+22.9%) leading the way.
Globally international visitor spending is set to grow by nearly 16% to reach US$1.9 trillion, while domestic tourists are projected to spend more than ever before, reaching US$5.4 trillion, an increase of 10.3% over 2019 levels.
Travel and tourism investment grew 13% in 2023 to reach more than US$1 trillion, with a return to pre-pandemic levels anticipated by 2025.
However, high interest rates around the world could create challenges for future investment. It is therefore crucial that the public and private sectors work together to innovate to ensure the continual strengthening of this vital sector.
The report also highlights the sector’s commitment to sustainability, showcasing the decoupling of growth from greenhouse gas emissions and the increasing opportunities for women, young people, and marginalised communities.
Technological advancements, particularly in artificial intelligence, are expected to further enhance the travel experience and drive future growth.
Julia Simpson, WTTC president & CEO, said: “As we look forward to a record-breaking 2024, it’s clear that travel and tourism is not only back on track, but also set to achieve unprecedented growth.
“We will continue to prioritise sustainability and inclusivity, ensuring that this growth benefits everyone and protects our planet for future generations. The sector’s resilience and potential for innovation continues to drive us forward.”
The WTTC 2024 Economic Impact Trends Report can be viewed here.