As airlines and travel companies navigate the complexities of customer journeys, AI agents offer a promising solution to enhance and sustain customer relationships. By maintaining context and responding to customer signals over extended periods, these agents can transform isolated interactions into continuous loyalty and direct revenue streams.
AI-Powered Transformation in the Travel Sector
Research by Skift involving close to 7,000 travellers highlights a changing landscape in trip planning, involving search engines, social media, and AI. Despite over 60% of informed consumers using AI for trip planning, the actual bookings are still confined to fewer channels due to considerations of cost, trust, and payment flexibility.
Airlines face the challenge of maintaining consistent customer interaction through a fragmented buying process. AI agents can enhance service interactions, handling tasks like answering questions, managing bookings, and resolving complaints, by carrying information from previous interactions forward.
Integrating AI Across Airline Functions
Airlines need to strategise on integrating AI across traditionally separate functions like disruption management and customer loyalty. The seamless operation of AI tools across these areas relies on a common understanding of customer context to prevent system silos and enhance service delivery.
Erik Zahnlecker, product manager at Sierra, emphasises that “long-running AI agents” should maintain context over time, thereby supporting continuous traveller engagement and promoting long-term customer relationships.
Navigating the Path After Disruptions
AI’s potential in handling flight disruptions is substantial. When flights are affected by unforeseen events like storms, AI agents can proactively manage customer needs by balancing traveller priorities with airline policies in real-time, aiding in rebooking and other necessary services.
AI’s capability extends to monitoring and following up with customers post-disruption, ensuring issues like claims and seat preferences are efficiently managed, thus fostering a holistic and uninterrupted service experience.
Capitalising on Inter-Trip Opportunities
The period between trips often goes underutilised by airlines but presents a chance for engagement that goes beyond periodic marketing emails. AI agents like Sierra’s Horizon can make use of specific traveller data, such as previous trips or price drops, to personalise communication and entice future travel-related actions.
A separate Skift study indicates that personalised recommendations could positively influence over half of the surveyed travellers in planning future visits shortly after a trip ends.
Driving Revenue with Personalised Offers
AI agents can make informed decisions on upselling and cross-selling before and after booking confirmations, using customer history to customise offers like seat upgrades or additional services. This tailored approach not only boosts ancillary sales but also strengthens loyalty and lifetime customer value.
The commercial impact of such targeted engagement invites parallels with programs like Sierra’s membership plans that have successfully enhanced retention and customer satisfaction metrics.
Maintaining Relevance in Communication
The success of continuous engagement hinges on delivering relevant communication. AI agents that act on customer preferences and trigger events—such as seat availability adjustments—can engage meaningfully without becoming disruptive.
Wider Implications and Adoption Across Travel Industries
Beyond airlines, other sectors like hotels and online travel agencies (OTAs) are poised to adopt AI agents for diverse roles, from reservation management to post-stay engagement. Their effectiveness in maintaining a cohesive service experience will influence the perceived and actual value created across the customer journey.
Strategic Implementation and Scalability
While full-scale implementation could support end-to-end customer journeys, starting small is advisable. Focusing on high-frequency use cases, like handling reservations or cancellations, allows companies to build trust and refine the technology in manageable phases.
Airlines and travel companies with a forward-thinking approach toward AI integration are likely to better harness incremental revenue opportunities by enhancing customer interactions and personalisation.
Reporting based on coverage first published by skift.com.