You don't need me to remind you that points and miles can be used for fancy flights and posh hotel stays.
08.12.2023 - 17:57 / skift.com / Sebastian Ebel / Selene Brophy
Travel platforms have traditionally prompted users to search with specific queries for flights or hotels. But AI is driving a shift towards conversational search methods, and tour operator TUI is trying to stay ahead of the curve.
TUI has been testing how to move from static search forms to online chats focusing on customers’ desired travel experiences, like diving or nightlife, to tailor unique trip itineraries.
“People look first where they can dive best before they decide on a country or a hotel,” said CEO Sebastian Ebel during an investor call Wednesday. “Experiences are the main driver for decisions. It is the new lifestyle and global trend.”
For more details on TUI’s ideas, Skift interviewed TUI Group chief information officer Pieter Jordaan, who said TUI was “investing millions of euros” into generative AI applications.
TUI has been testing a way of engaging with customers where travelers using its app start by sharing what their desired experience is for a trip, and the chatbot works backward to determine travel and accommodation.
“Travel is almost a byproduct of the experience they want,” Jordaan said. “I think the travel industry needs to change how they help the customer.”
TUI has been testing an AI planning tool for selected app users in the UK only. About 80,000 people have engaged with TUI’s generative AI chatbot since its launch in July, Jordaan said.
About 12% of those clicked to view travel experiences suggested by the chatbot. The conversion rate to book travel products, however, has remained about the same as the company’s long-standing search recommendations, including web or mobile booking.
The sample size is small compared to the 19 million customers TUI served this year.
TUI is working with several generative artificial intelligence service providers, not just one, to modernize its travel search, booking, and customer engagement.
Jordaan said Open AI’s Enterprise ChatGPT and Amazon Web Services’ Bedrock are “a big accelerator” for enterprise-level AI development, allowing TUI to use its vast customer data safely and securely.
Jordaan sees TUI’s generative AI approach as agnostic, taking elements from various providers. Open AI and Microsoft’s Copilot, Google’s Bard, now enhanced by Gemini, and AWS all offer different opportunities to exploit with “tool suites and ecosystems,” according to Jordaan.
“We want to solve business problems, not solve technology problems. We don’t need to do training [of LLMs, or large language models]; we need to innovate in a secure way for our customers,” said Jordaan.
He said the tour operator has already implemented AI innovation with its translation services, copywriting and SEO enhancements, communication posts, and to generate faster
You don't need me to remind you that points and miles can be used for fancy flights and posh hotel stays.
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