Generative AI Transforms Summer Travel Planning, Says New Oliver Wyman Report
Generative artificial intelligence (AI) is revolutionizing leisure travel, changing how consumers plan vacations just in time for summer, according to a new report from consulting firm Oliver Wyman.
The report, titled Why Generative AI Is a Game Changer for Leisure Travel, reveals that 41% of Americans and Canadians surveyed have used generative AI for trip inspiration or itinerary planning, up from 34% in August 2023. Oliver Wyman's analysis suggests that online travel agencies (OTAs) could increase their share of the US online travel market by up to 17 percentage points by 2029 if travel suppliers continue to neglect investment in generative AI capabilities. This shift could potentially result in OTAs gaining over $2 billion in additional commissions from suppliers.
"Consumers are sidestepping two major pain points when using generative AI for travel planning—information overload and the time spent navigating multiple sources for inspiration and planning," 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 represents a missed opportunity for these brands to enhance customer loyalty, incentivize direct bookings, and offer personalized recommendations."
Key findings from the report include:
Satisfied Travelers – Among travelers who used generative AI tools, 82% are likely to use them again for future travel plans. Generative AI is particularly popular with younger travelers, with 59% of those under 45 years old using these tools for travel planning. Notably, 31% of travelers aged 45 and older are also utilizing generative AI. Additionally, over three-quarters of consumers are satisfied with the travel recommendations provided by generative AI tools, with high conversion rates for booking the AI-suggested trip options.
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 preference for generative AI, with 45% of elite loyalty members using it recently to plan trips. The survey also indicates that generative AI is popular among cruise travelers, with 54% of respondents who had taken at least one cruise since 2022 using generative AI for travel planning.
