Every generation has its own “golden age” of travel that is often defined by the widespread adoption of new technology—from the jet engine of the 1950s that drastically reduced travel times to the dot-com period of the 1990s that allowed customers to build their dream itineraries online. Now, a new era of digitally enabled travel is upon us, with advances in artificial intelligence (AI), including generative AI (GenAI), and machine learning (ML) transforming the experience. Applications span travel organizations and use cases from AI-enabled trip planning, to individually tailored communication during disruptions, to live simulation models and virtual reality (VR) training to improve frontline decision making.
Technology has influenced the way consumers experience travel, too. According to Skift Research, people have increased time spent on digital devices by 70 percent since 2013.1 This trend accelerated during the COVID-19 pandemic, when online interactions frequently replaced in-person contact and consumers became more accustomed to using digital tools. However, traditional travel is unique in that it can only happen in person, making it an inherently human-centric experience. The industry currently has an opportunity—and perhaps even a duty—to define what this looks like in the digital age.
While most travel companies aim to provide exceptional service and deliver the perfect trip, the average traveler’s experience is often far different. Operators inconsistently deliver on baseline expectations of timing and quality (e.g., itinerary changes, delays, and cancellations), which too often cause customers stress and anxiety. Despite this, people still aspire to travel. Through both established and new technologies, companies have an opportunity to keep this aspiration alive by closing the persistent gap between the promise and reality of travel.
Embracing this opportunity and adopting new technologies may require investment. Larger companies may have more resources to invest in new technologies and develop in-house capabilities, but a robust ecosystem of service providers has emerged that makes new technologies accessible to companies of all sizes. According to McKinsey Digital estimates, by holistically addressing digital and analytics, including AI, throughout the organization, companies across industries see a 15 to 25 percent potential EBIT improvement. This is an opportune time for businesses across the travel industry to start setting the pace for value creation by rethinking how they interact with customers, develop and deliver products and services, and manage people and operations.
Every generation has its own “golden age” of travel that is often defined by the widespread adoption of new technology—from the jet engine of the 1950s that drastically reduced travel times to the dot-com period of the 1990s that allowed customers to build their dream itineraries online. Now, a new era of digitally enabled travel is upon us, with advances in artificial intelligence (AI), including generative AI (GenAI), and machine learning (ML) transforming the experience. Applications span travel organizations and use cases from AI-enabled trip planning, to individually tailored communication during disruptions, to live simulation models and virtual reality (VR) training to improve frontline decision making.
Technology has influenced the way consumers experience travel, too. According to Skift Research, people have increased time spent on digital devices by 70 percent since 2013.1 This trend accelerated during the COVID-19 pandemic, when online interactions frequently replaced in-person contact and consumers became more accustomed to using digital tools. However, traditional travel is unique in that it can only happen in person, making it an inherently human-centric experience. The industry currently has an opportunity—and perhaps even a duty—to define what this looks like in the digital age.
While most travel companies aim to provide exceptional service and deliver the perfect trip, the average traveler’s experience is often far different. Operators inconsistently deliver on baseline expectations of timing and quality (e.g., itinerary changes, delays, and cancellations), which too often cause customers stress and anxiety. Despite this, people still aspire to travel. Through both established and new technologies, companies have an opportunity to keep this aspiration alive by closing the persistent gap between the promise and reality of travel.
Embracing this opportunity and adopting new technologies may require investment. Larger companies may have more resources to invest in new technologies and develop in-house capabilities, but a robust ecosystem of service providers has emerged that makes new technologies accessible to companies of all sizes. According to McKinsey Digital estimates, by holistically addressing digital and analytics, including AI, throughout the organization, companies across industries see a 15 to 25 percent potential EBIT improvement. This is an opportune time for businesses across the travel industry to start setting the pace for value creation by rethinking how they interact with customers, develop and deliver products and services, and manage people and operations.
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