In an era where technology is reshaping industries at an unprecedented pace, Generative AI (GenAI) stands out as a transformative force, particularly in the travel sector. This cutting-edge technology is not just a tool for developers but a strategic asset that can redefine customer experiences, streamline operations, and drive innovation.
Skift conducted a survey of travel executives earlier this year finding that 89% said generative AI will have a “meaningful impact” on their business in the next three years. But how exactly should businesses be looking at implementing GenAI?
At Skift Global Forum 2024, Damien Pfirsch, Head of Rocket Travel by Agoda, shared how GenAI is being leveraged to revolutionize the travel industry, highlighting practical applications and strategic approaches that can serve as a blueprint for businesses looking to harness the full potential of AI.
GenAI Improves the Customer Experience
Pfirsch noted the areas where Rocket Travel by Agoda has implemented GenAI, such as front-end conversion, customer service, and fraud prevention. Utilizing 120 GenAI services, the team saved 250,000 hours of work a year – translating to a 5% increase in efficiency.
All of this work impacts the customer experience. One of the best use cases for GenAI at Rocket Travel by Agoda has been in customer service interactions. By looking at the bottom of the funnel, where customers already made bookings and were now reaching out for help, the team was able to optimize their processes. Based on the data gathered, the team implemented a case summarization tool, which uses GenAI to simplify customer messages into clear action points – reducing agent response times by 30%.
“Today, less than 5% of a booking needs human attention,” Pfirsch noted. “We think that with OpenAI we can significantly decrease that number as well as increase satisfaction.”
As part of Agoda, Rocket Travel by Agoda partners are benefitting from experiments in gen AI to support Agoda.com customers.. Understanding that customers spend a lot of time on property pages and sometimes struggle to find relevant information, the Agoda team developed a Q&A chatbot to guide and answer the customer’s questions, increasing conversions as a result. GenAI is also being used to identify travel trends and create destination guides on Agoda.com more efficiently – 12 times faster than using internal resources.
“We use GenAI to scan the web, interpret the data, and tell us the latest trends that people are searching and booking travel for,” Pfirsch explained. “Based on that, we produce destination guides to capture the customer's intention at the moment they are starting to look for specific events. We’ve seen a significant impact on conversion as a result.”
Starting at the Top: Organizational Culture
Pfirsch noted the areas where Rocket Travel by Agoda has implemented GenAI, such as front-end conversion, customer service, and fraud prevention. Utilizing 120 GenAI services, the team saved 250,000 hours of work a year – translating to a 5% increase in efficiency.
All of this work impacts the customer experience. One of the best use cases for GenAI at Rocket Travel by Agoda has been in customer service interactions. By looking at the bottom of the funnel, where customers already made bookings and were now reaching out for help, the team was able to optimize their processes. Based on the data gathered, the team implemented a case summarization tool, which uses GenAI to simplify customer messages into clear action points – reducing agent response times by 30%.
“Today, less than 5% of a booking needs human attention,” Pfirsch noted. “We think that with OpenAI we can significantly decrease that number as well as increase satisfaction.”
As part of Agoda, Rocket Travel by Agoda partners are benefitting from experiments in gen AI to support Agoda.com customers.. Understanding that customers spend a lot of time on property pages and sometimes struggle to find relevant information, the Agoda team developed a Q&A chatbot to guide and answer the customer’s questions, increasing conversions as a result. GenAI is also being used to identify travel trends and create destination guides on Agoda.com more efficiently – 12 times faster than using internal resources.
“We use GenAI to scan the web, interpret the data, and tell us the latest trends that people are searching and booking travel for,” Pfirsch explained. “Based on that, we produce destination guides to capture the customer's intention at the moment they are starting to look for specific events. We’ve seen a significant impact on conversion as a result.”
For Pfirsch, implementing GenAI is an organizational imperative and skill:
“We are looking at GenAI as an organizational skill, not just something for developers. This is like a new muscle that the entire organization has to develop. Having a long-term 20-year vision is necessary, but you also need to create a step-by-step approach and conduct measurable experiments.”
For organizations looking to start implementing GenAI, Pfirsch advised fostering a culture of curiosity and experimentation.
“It's all about being curious and sharing that curiosity with your organization,” Pfirsch said. “First give them a framework to enable them to iterate and experiment. Encourage them to look for small things that they can improve. You will see that there are a lot of people in your organization that are already playing with AI tools. Make them your champion, empower them with all the latest tools, and it will create wonders.”
Generative AI is set to transform the travel industry and beyond. Organizations looking to harness this potential can start small, focusing on practical, measurable applications to gradually build their AI capabilities. By fostering a culture of curiosity and experimentation, businesses can explore AI's possibilities and position themselves at the forefront of innovation and a more efficient and customer-focused future. Watch the full discussion here.
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