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How many leisure travelers will actually use Generative AI tools?

Generative AI is significantly impacting the travel industry that more than one-third of leisure travelers have already used generative AI tools for trip planning.

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📈Top Story

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[Phocuswire] MORE THAN ONE-THIRD OF LEISURE TRAVELERS HAVE USED GENAI TOOLS, REPORT SAYS

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Generative AI is significantly impacting the travel industry, as revealed by a recent survey of travelers in the United States and Canada. The study found that more than one-third of leisure travelers have already used generative AI tools for trip planning, with high satisfaction rates. These AI tools, despite being relatively new to the market, are helping travelers with personalized recommendations, comparative pricing, and integrated booking experiences.

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Travelers are showing a strong trust in AI for travel inspiration, with many willing to make bookings based on its suggestions. The technology is particularly appealing to younger generations who value authentic, informative, and trustworthy content.

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For loyalty program members, GenAI capabilities are increasingly becoming a deciding factor for choosing booking platforms. This trend suggests travel suppliers should consider integrating GenAI into their strategies, especially as direct booking channels risk losing volume to more AI-equipped non-direct channels.

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The integration of generative AI is becoming a crucial factor for customer loyalty, influencing travelers' choices of booking platforms. With increasing adoption and reliance on AI for travel planning, it's anticipated that generative AI will soon become a standard tool in the industry, changing how people envision and organize their trips.

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💡Tech Trends

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[H Trends] 85% Now of Business Travel is Through Small to Medium Businesses

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At the World Travel Market in London, travel leaders discussed post-pandemic trends, noting significant shifts in consumer behavior and the impact of inflation in some markets.

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Patricia Page-Champion, Hilton’s Senior Vice President and Global Commercial Director, revealed that 85% of business travel now comes from small to medium businesses, with a notable increase in 'bleisure' travel, where business trips are combined with leisure.

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This trend is partly driven by the rise in flexible working, with one in four people bringing a loved one on business trips in 2024. Also, customers are increasingly requesting pet-friendly hotels, confirmed connecting rooms, EV charging, and sustainable options, including for events.

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Peter Krueger, Chief Strategy Officer and Chief Executive Officer Holiday Experiences for TUI, highlighted that "experience is the new luxury" in travel, with customers seeking meaningful experiences beyond traditional sun and beach holidays.

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