By Mike Barron, Expedia Cruises

The travel industry today is not the travel industry of the past.

It has undergone significant changes in recent years, adapting to new consumer behaviors and rapid advancements in technology. With more travelers wanting to create destination bucket lists and adopting a “why not now” mentality, the demand for one-of-a-kind and memorable travel experiences has skyrocketed. This shift highlights a larger cultural trend where people value experiences over material possessions, pushing them to seek out adventures and explore new places they might have never considered before.

As the industry continues to evolve and to help ensure the longevity of our franchisees, it’s become essential to integrate cutting-edge technologies into the day-to-day services, specifically artificial intelligence (AI). Travel agencies are increasingly recognizing the importance of leveraging AI to help them meet the growing needs of modern travelers, who demand personalized services, seamless operations, and consistent customer support. Here’s how AI is reshaping the landscape of the travel industry.

More Personalized Travel Experiences

One of the most significant benefits that AI brings to the travel industry is its ability to create highly personalized experiences through the collection of consumer data. By understanding each traveler’s preferences, habits, and past behaviors, AI can create tailored itineraries and suggest vacation spots that align with the person’s interests.

For instance, if the person is a “foodie” and frequent restaurant-goer, AI can create an itinerary that surrounds and includes food-related experiences such as a food tasting, cooking demonstration, or a private tour of a food/beverage facility. This personalization not only makes each vacation unique, but also increases customer satisfaction and loyalty for the brand.

Today, travelers expect companies to understand their needs and provide tailored answers if a problem arises or a recommendation is needed. While travel agents have thorough industry knowledge, AI further enables them to provide a more personalized service rather than a generic approach. Having a resource that identifies and focuses on personalized details can help create memorable trips for vacation-goers, and potentially make repeat customers — which is vital for franchisees.

AI can also be leveraged to adjust itineraries in real time. If a person’s plans change or they wish to experience something different, this technology can provide customized solutions quickly and seamlessly. What might have been a stressful last-minute accommodation can seem effortless by having AI at your fingertips.

Increased Operational Efficiencies

AI is critical for increasing operational efficiencies within any travel brand. From the booking process to managing reservations and customer service, AI streamlines various operational processes that are central for running a successful travel agency franchise.

By automating repetitive tasks — such as data entry, payment processing, and itinerary management — franchisees can significantly reduce costs, improve accuracy, and ensure smooth operations.

Additionally, AI is a great tool for resource allocation so franchisees can make sure they’re using their assets efficiently. For example, AI can predict peak travel seasons through booking trends and make appropriate recommendations to accommodate the expected increase in demand. This improved operational strategy can help cut costs and free up time to focus on strategic growth and innovation, which are vital to running a sustainable franchise.

A Revolutionary Approach to Customer Service

AI-powered tools such as chatbots and virtual assistants are transforming customer service for franchisees within the travel industry. While human interaction remains invaluable, especially during emergencies or complicated customer requests, AI provides support around the clock. These systems can answer queries, manage bookings, and resolve issues in real time, creating an overall smooth and efficient experience for the customer.

With advancements in natural language processing and machine learning, AI systems can handle complex interactions. They are able to learn from past conversations, which enables them to provide swift and accurate responses to customer queries.

This immediate solution is especially valuable for travel agency franchises, where people often need quick answers to last-minute problems or unexpected changes in plans. In using various machine learning tools, customers can feel more supported throughout their vacation.

Direct Access to Data-Driven Insights

From booking trends and customer feedback to social media engagement, the travel industry generates an immense amount of data every day. AI enables travel franchisees to use this data and uncover valuable insights that can play a role in strategic decision-making.

By analyzing market trends, customer behavior, and operational performance, franchisees can make smart and quick adjustments to services, marketing efforts, and product offerings. For example, AI analytics may find a growing number of people who are going on wellness retreats, eco-friendly trips, or booking travels around pop culture events such as sports games.

A franchisee can differentiate themselves from competitors in their area by leveraging the insights surrounding a customer’s interests to promote tailored packages. Understanding customer preferences can result in more effective marketing campaigns through targeted promotions and product offerings relevant to the specific traveler.

As people are saying yes more frequently and taking trips that are adventurous or immersive, the industry must adapt to meet the changing expectations from their customers. By providing personalized travel experiences, increasing operational efficiency, modernizing customer service, and having access to data-driven insights, AI enables us to be able to fully understand and service the modern traveler.

Mike Barron is the senior director of franchise operations at Expedia Cruises, a full-service leisure travel agency franchise. For more information about IFA franchisor member Expedia Cruises, please visit franchise.org/franchise-opportunities/expedia-cruiseshipcenters.