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1、+The Promise of Travel in the Age of AISeptember 2023The work is independent,reflects the views of the authors,and has not been commissioned by any business,government,or other institution.Cover Illustration:Taylor SlatteryAbout SkiftAbout McKinsey&CompanyMcKinsey is a global management consulting f

2、irm committed to helping organizations accelerate sustainable and inclusive growth.We work with clients across the private,public,and social sectors to solve complex problems and create positive change for all their stakeholders.We combine bold strategies and transformative technologies to help orga

3、nizations innovate more sustainably,achieve lasting gains in performance,and build workforces that will thrive for this generation and the next.Skift is the largest industry intelligence platform providing media,insights,and marketing to key sectors of travel.Skift deciphers and defines trends for g

4、lobal CEOs and CMOs across the travel industry through a combination of news,research,conferences,and marketing services.The Promise of Travel in the Age of AI2SKIFT+MCKINSEY&COMPANYTable of contentsExecutive summaryIntroductionChapter 1.Know your customers like you know your friendsChapter 2.Design

5、 your products to surprise and delightChapter 3.Empower your workforce to follow through on promises madeConclusionChecklist471117232829The report draws on joint research carried out between McKinsey&Company and Skift Research,including executive interviews.The authors wish to thank the following tr

6、avel executives who generously shared their perspectives with us:Ella Alkalay Schreiber(GM of Fintech,Hopper),Andres Barry(President,JetBlue Travel Products),Claire Bennett(Global CCO,IHG),Jason Birnbaum(CIO,United Airlines),Alix Boulnois(CDO,Accor),Rob Francis(CTO,Booking Holdings),Christiaan Hen(C

7、CO,Assaia),Harsha LAcqua(CEO,Saira Hospitality),Schubert Lou(COO,T),Doron Meyassed(CEO,Plum Guide),Markus Mueller(Founder and Managing Director,GauVendi),Rajesh Naidu(SVP and Chief Architect,Expedia),Albert Ng(Co-founder and CEO,Misapplied Sciences),Casper Overbeek(Head of Customer Experience,citize

8、nM),Eric Phillips(SVP and CDO,Delta Air Lines),Nikhil Ravishankar(CDO,Air New Zealand),Ilan Twig(Co-founder and CTO,Navan),and Luca Zambello(CEO,Jurny).We also acknowledge McKinseys Marisa Ancona,Danielle Bozarth,Melissa Lukasiewicz,Elena Patel,Alessandra Powell,Darren Rivas,Ellen Scully,and Jules S

9、eeley for their contri-butions to this report.Additionally,we would like to thank Skifts Jane Alexander,Rafat Ali,Varsha Arora,Jeunesse Jackson,Carolyn Kremins,Jeremy Kressmann,and Brian Quinn.We would also like to thank Skifts Melissa Carter and Taylor Slattery,and McKinseys Crystal Ball,Kamila Cie

10、slak,Maggie Coffey,Jackie Fermo,Natalia Quesada,Alice Shol-to-Douglas,and Corinne Teschner for their creative,editorial,external relations and communications support.AcknowledgementsThe Promise of Travel in the Age of AI3SKIFT+MCKINSEY&COMPANYExecutive summaryEvery generation has its own“golden age”

11、of travel that is often defined by the widespread adoption of new technologyfrom 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,wi

12、th 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 vir

13、tual 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 i

14、nteractions 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 1 Based on data from U.S.Census Bureau and Statista.See State of travel 2023,Skift Research,July 21,2023.in person,making it a

15、n inherently human-centric experience.The industry currently has an opportunityand perhaps even a dutyto 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 travelers experience is often far different.

16、Operators inconsistently deliver on base-line 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

17、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

18、ecosystem of service providers has emerged that makes new technologies accessible to companies of all sizes.According to McKinsey Digital estimates,by holisti-cally addressing digital and analytics,including AI,throughout the organization,companies across industries see a 15 to 25 percent potential

19、EBIT improvement.This is an opportune time The Promise of Travel in the Age of AI5SKIFT+MCKINSEY&COMPANYfor 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 an

20、d operations.This report is intended to inspire travel companies to reimagine their businesses,raise the industrys aspirations,and unlock long-term stability and growthall necessary to keep the magic of travel alive.It is not a step-by-step guide to digital trans-formation.It offers use cases and su

21、ccess stories that detail how technologies are being used,and presents examples and insights drawn from interviews with executives at 17 companies across five types of travel businesses.Know your customers like you know your friendsAs customers turn to digital technology for inspiration on where and

22、 how to travel,they leave behind a trail of data for compa-nies to capture.Not only can this data be difficult to process,but internal data may not necessarily paint the full picture.To complete their understanding,companies may turn to third-party sources.Robust marketing technologies can then help

23、 distinguish the“signal”from the“noise”in the data to better predict customer behavior.Having gained a clear and comprehensive understanding,companies can create customer segments to guide how they interact with and serve different customers.Depending on the data available and the analytical capabil

24、ities at hand,segmen-tation can range from grouping customers into segments based on a single macro characteristic(e.g.,business versus leisure)to individual“segments of one,”known as hyper-segmentation.Drilling down to segments of one can enable hyper-personal-ization,which is broadly defined as th

25、e ability to uniquely tailor touchpoints to an individual customers needs,preferences,and behaviors.At its core,hyper-personalization is not only about increasing conversion rates,but about providing the customer with an end-to-end experience adapted to their specific context.Considering the level o

26、f personalization that is becoming the norm in many aspects of daily life,companies are adopting an ongoing test-and-learn approach to ensure their offers and actions resonate with customers rising expectations.If operations go wrong,hyper-personalization reassures customers that they are at the for

27、efront of the companys mind and instills confidence that a thoughtful recovery plan is in place(e.g.,sharing real-time status updates in moments of disruption with tailored solutions or even proactive compensation).Design your products to surprise and delightRecent advances are pushing the boundarie

28、s of what tech-nology can accomplish.While the pace of adoption may feel unsettling,it provides an impetus for travel companies to reimagine their service design and delivery using AI and digi-tizationminimizing traveler friction and delivering on their promises.Historically,capabilities such as lan

29、guage,creativity,and aesthetic judgmentonce considered uniquely humancould not be scaled through technology.AI,particularly GenAI,offers a new way to deliver these capabilities.For example,online travel agencies have started to integrate GenAI into mobile apps to make the discovery and booking proce

30、sses easier and provide customers with personalized recommendations.However,AI remains only part of the answer.Across travel sectors,digitization continues to help companies deliver against commitments made to customers.Hotels,for instance,use digitization to speed up routine processes like check-in

31、,while freeing up staff to provide better face-to-face interactions.Many of these assets and tools rely on common,existing systems and capabilities making them widely attainable.Using a combi-nation of AI and digitization,travel companies can provide a delightful and frictionless end-to-end travel e

32、xperience for their customers.Empower your workforce to follow through on promises madeAn engaged and productive workforce allows the delivery of experiences and products that satisfy customers.Two areas stand out as opportunities to improve operational performance and increase workforce satisfactio

33、n through technology:augmenting frontline capacity and upskilling existing talent.Often,technology and automation are perceived as negative forces that eliminate jobs.However,as the travel industry is The Promise of Travel in the Age of AI6SKIFT+MCKINSEY&COMPANYfacing an ongoing labor shortage,a ref

34、raming is necessary.New tools and technologies are not meant to replace the human touch,but to enhance and scale itallowing staff to focus on tasks and decisions that require their thought and intervention.In the travel industry today,complex decisions still rely on human expertise and intuition;whe

35、re automation is used,the technology is often outdated(including greenscreens or rudimentary interfaces).This approach leads to inconsistent“best-guess”decisions that perpetuate a reliance on specialized knowledge.Given the steep learning curve involved in devel-oping this expertise,new frontline st

36、aff can struggle to catch up.Instead,advanced simulation modeling and new deci-sion-making tools such as digital twins,connected to real-time data sources,allow companies to conduct rapid“what-if”anal-yses and provide live guidance and feedback to the frontline.Technology can also make it easier to

37、bring new hires up to speed while upskilling the existing workforce.For instance,virtual reality(VR)and augmented reality(AR)are used to simulate multiple realistic scenarios,quickly preparing frontline employees to hit the ground running,and provide personalized coaching based on performance.Travel

38、 is ripe for innovationWe believe this is a moment of optimism for the industry.Between reclaiming its historical share of GDP,benefitting from the ongoing corporate travel recovery,and catering to consumer demand for unique experiences,the stage is set for travels accelerated growth.Looking ahead,t

39、ravel is forecasted to grow an average of 5.8 percent a year up to 2032more than double the expected growth rate of the overall economy(at 2.7 percent a year).2This does not mean that travel companies can simply sit back and reap the benefits.Companies that choose not to use existing and new technol

40、ogies to reset how they interact with customers,deliver products and services,and empower their workforce could watch the industry move without themno matter if they are a travel supplier,a distributor,a large global brand,or a growing startup.Fortunately,there are a growing number of avenuesbuild,b

41、uy,or partnerto help companies get started.The only wrong move is no move.2“Travel&Tourism sector expected to create nearly 126 million new jobs within the next decade,”World Travel&Tourism Council,April 21,2023.The Promise of Travel in the Age of AI7SKIFT+MCKINSEY&COMPANYIntroductioninteract with c

42、ustomers,develop and deliver products and services,and manage people and operations.Bridging the gap between promises made and promises kept.The ultimate goal of travel companies is to provide excep-tional service and deliver the customers dream of a perfect trip.However,the customer experience is o

43、ften very differentinstead of ease,excitement,and delight,travel frequently induces stress and anxiety.Too many operators fall short of meeting baseline expecta-tions of timing and quality:flight delays and cancellations,hotel check-in delays,lost luggagethe list goes on.Negative headlines reflect h

44、ow deeply these disappointments are felt.In the first half of 2023,nearly 80 percent of American travelers Every generation has its own“golden age”of travel.Travel meant something different to your parents and grandparents than it does to youand it will mean something different to the next generatio

45、n,too.In the 1950s,jet engines launched travelers into a world where the journey from New York to London lasted less than a day.In the 1970s,airline deregulation brought travel to the masses,with new routes serving all corners of the world.And in the 1990s,the dot-com era empowered customers to craf

46、t their dream itineraries online.What will define the next age of travel?Digital technology,machine learning(ML),and artificial intelligence(AI),including generative AI(GenAI),are equipping the industry to reimagine what it means to plan,book,and experience travel.This surge of innovation sets the s

47、tage for companies to rethink how they This report is intended to inspire travel companies to reimagine their businesses,unlock long-term stability and growth,and raise the industrys aspirationsit is not a step-by-step guide to digital transformation.It offers use cases and success stories that deta

48、il how technologies are being used,drawing from interviews with executives at 17 companies across five types of travel businesses.The Promise of Travel in the Age of AI8SKIFT+MCKINSEY&COMPANYexperienced at least one travel-related problem.3 In another 2023 survey,fewer than half of US travelers said

49、 that their last international leisure trip lived up to expectations.4Digitally enabled travel gives companies the opportunity to close the persistent gap between promise and reality.Using established and new technologies,companies can raise the bar for the entire industry and reset how customers th

50、ink and feel about travel.Digital-first is not a fad.According to Skift Research,people have increased time spent on digital devices by 70 percent since 2013.5 This trend accelerated during the COVID-19 pandemic,when online interactions frequently replaced in-person contact and consumers became more

51、 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.3 Lane Gillespie,“Survey:77%of travelers plagued by travel problems amid booming season;more than half saw higher prices,”Bankrate,July 10,202

52、3.4 Marie Haaland,“When a trip doesnt go as planned,most people stay calm and flexible,survey finds,”SWNS Digital,April 13,2023.5 Based on data from U.S.Census Bureau and Statista.See State of travel 2023,Skift Research,July 21,2023.The industry currently has an opportunityand perhaps even a dutyto

53、define what this looks like in the digital age.The easing of pandemic-related travel restrictions established 2021 as the year of“revenge travel.”Leisure travelers were eager to get back to the sky,water,and roadso much so,they were often willing to overlook customer-service issues and inconvenience

54、s.6 But that window of acceptance has passed;customers have a new set of expectations and tolerance is wearing thin.The days of travelers excusing delays,standing in endless queues,and waiting on hold for agents are numbered.The travel industry can inspire and aspire.Despite these frus-trations,the

55、desire to travel remains.According to McKinseys ConsumerWise Sentiment Survey,over 30 percent intend to“splurge”on expenses in the coming year with travel behind only restaurants and groceries for home(Exhibit 1).7To maintain this favored position among consumers,and keep the desire to travel alive,

56、travel companies can focus on delivering exceptional customer experiences.However,many companies face the challenge of aging legacy systems 6 Rebooting the customer experience to bring back the magic of travel,a joint report from McKinsey and Skift Research,September 2021.7 McKinsey ConsumerWise Glo

57、bal Sentiment Data,August 2023,n=4,000.EXHIBIT 1 CONSUMERS WANT TO SPLURGE ON TRAVEL?Source:McKinsey ConsumerWise Global Sentiment Data,August 2023,n=4,000 The Promise of Travel in the Age of AI9SKIFT+MCKINSEY&COMPANYto overcome,and AI and other new technologies are often viewed as abstract and chal

58、lenging to implement.Not only does this hinder progress but workarounds and superficial fixes are often prioritized in IT budgets.The result is a mountain of work for small,marginal improvements that are hardly felt by consumers and employees.This stands in contrast to the travel sectors strong trac

59、k record of innovation.After all,this is the industry that pioneered modern revenue management,network-optimization tools,simula-tion training,and global distribution systems.Fortunately,the industry can turn to its innovative history to find the inspiration to“pick the baton back up”and lead on emb

60、racing a digitally enabled future(Exhibit 2).Advanced technology is for everyone,big and small.Larger companies may have more resources to invest in technology and develop in-house digital tools and capabilities.However,a robust ecosystem of products and services has emerged that makes new technolog

61、ies accessible to companies of all sizes.Travel companies can pursue a combination of build,buy,and partner strategies to develop their digital and analytics capabilities,setting them on a course for profitable growth.According to McKinsey Digital estimates,by holistically addressing digital and ana

62、lytics,including AI,throughout the organization,companies across industries see a potential 15 to 25 percent EBIT improvement.This is an opportune time for EXHIBIT 2 THE INDUSTRY HAS AN OPPORTUNITY TO REIMAGINE THE FUTURE:DIGITALLY ENABLED TRAVEL1525%potential EBITimprovement for companies across in

63、dustries from holistically addressing digital and analytics,including AI,across functions,according to McKinsey Digital estimatesThe Promise of Travel in the Age of AI10SKIFT+MCKINSEY&COMPANYthe travel industry to embrace technology and start setting the pace for value creation.Historically,travel s

64、tartups have been underfunded relative to the industrys size.Now venture investment in the sector is rising.In fact,in 2021,investment set an all-time high of almost$11 billionindicating that investor appetite has not only returned to pre-COVID-19 levels,but rather surpassed it.8 This investment off

65、ers an opportunity for travel companies big and small to innovate their technology and win back the magic of travel.Chapter One explores how companies apply advanced data science to better understand and serve customers.Chapter Two delves into how digital and analytics tools can improve products and

66、 services,while Chapter Three examines how new technologies augment workforce capabilities and unlock operational capacity.8 Giuseppe Genovese,Evgeni Kochman,Vik Krishnan,and Nina Wittkamp,“Travel startups:Disruption from within?”,McKinsey,March 2023.The Promise of Travel in the Age of AI11SKIFT+MCK

67、INSEY&COMPANYChapter 1.Know your customers like you know your friendsTravelers are increasingly turning to digital technologysocial media,web searches,reviews,online travel agencies(OTAs)and morefor inspiration and information.This engagement creates a vast amount of data for travel companies to cap

68、ture and analyze for rich and precise customer insights.This granular data allows for extensive personalizationfrom discovery and planning,to custom offers,to anticipating the customers requests while on their trips.Even when things do not go as planned,personalization reassures customers that the o

69、perator is alert to their needs and that a thoughtful recovery plan is in place.Digital is everywhereand its changing travelPersonalized,digital-first experiences are now the norm.Since the start of the COVID-19 pandemic,digital technology has become increasingly ingrained in consumers daily lives.T

70、his has influenced consumer perspectives on where and how to travel,particularly with the rise of hybrid work.First-generation OTAs defined the past decade of travel marketing.While these OTAs created new opportunities to discover hidden gems,initial success often depended on customers entering the

71、right combination of keywords.Todays landscape looks entirely different,with travel companies,search engines,AI-powered chatbots,and social media apps able to predict what consumers will like and deliver targeted sugges-tions.And this content is influentialthree-quarters of trav-elers agree that the

72、yve been“inspired to travel to a specific destination by social media,”while 48 percent want to travel to destinations that will allow them to“show off on social media.”9 Technology has also created new ways to access travel.Hybrid work environments empower travelers to book blended trips that combi

73、ne business and leisure.Nine in ten people would like to add leisure time to their next business trip.10 Indeed,Marriott noted in its February 2023 earnings report that average business trip length of stay is up 20 percent from 2019.119 2023 Global travel trends report,American Express Travel,March

74、2023.10 Libby Zay,“How bleisure is changing the travel industry,”Navan,February 14,2023.11“Fourth Quarter 2022 Earnings Conference Call Transcript,”Marriott International,February 14,2023.The Promise of Travel in the Age of AI12SKIFT+MCKINSEY&COMPANYDont get lost in the noiseOver the past two decade

75、s,the variety and volume of customer data that travel companies can capture has increased dramati-cally;new tools and technologies such as AI-powered assistants are only accelerating this trend.Companies can aggregate inter-nally captured data with data from third-party sources to create a full pict

76、ure of the customercombining and distilling commer-cial,operational,financial,and behavioral inputs(Exhibit 3).With AI,consumers are typing in a lot more information about themselves.Now you have a lot more datavery rich information about the consumerthan you did before.Rob Francis,Chief Technology

77、Officer,Booking HoldingsWhile this is critical to understanding customer behavior,the sheer amount of information generated can be challenging to process.The industry is reckoning with an important fact:some data points are more useful than others.For example,hotel brands collect important feedback

78、on everything from booking-system failures to long check-in queues to subpar room cleanliness.They also capture less vital information such as browsing data collected when customers“window shop”for the presidential suite,or complaints customers have made about the weather.This poses an interesting c

79、hallenge:how to distinguish the signal from the noise?Marketing technology(MarTech)isolates customer buying factors that are within companies control and determines which data is indicative of customer behavior through sentiment analyses and ML-powered decision engines.Drill down to“segments of one”

80、MarTech stacks allow companies to analyze these troves of data and create customer segments.Segmentation,or the act of grouping“like”customers together,guides how compa-nies interact with and serve different customers.Depending on the data available and the analytics capabilities at hand,segmentatio

81、n ranges from macro(grouped on one macro characteristic like business versus leisure)to hyper(individual“segments of one”).At the broadest level,macro-segmentation groups customers according to a handful of high-level descrip-tive statistics(for example,average spending power or travel frequency).Ma

82、cro-segmentation doesnt require advanced analytics and can be managed using basic dashboard tools.Many companies rely on this approach.However,its broad strokes often miss meaningful patterns and difficult-to-detect relationships,resulting in confirmation bias,causation-cor-relation confusion,and a

83、disconnect between behavior and value creation.EXHIBIT 3 DATA FROM INTERNAL AND EXTERNAL SOURCES COMPLETES THE CUSTOMER PICTUREThe Promise of Travel in the Age of AI13SKIFT+MCKINSEY&COMPANYCompanies with a strong data and MarTech foundation are able to venture down the segmentation pyramid,implement

84、ing more granular and powerful approaches as they go.Advanced macro-segmentation groups customers more precisely using AI and ML models,while micro-segmentation breaks things down further into even more granular clusters.At the far end of the scale,hyper-segmentation takes into account multiple char

85、acteristics about an individual,creating a comprehensive view of a“segment of one.”From this level of detail,companies have the ability to re-aggregate customer groups based on any variable(and so move back up the segmentation pyramid)giving them the flexibility to deploy different segmentations str

86、ategically(Exhibit 4).EXHIBIT 4 HYPER-SEGMENTATION DRILLS DOWN TO A“SEGMENT OF ONE”When we run our ad campaigns,we have multiple versions that speak to different demographics of guests.For our Gen Z audience,we have launched more partnerships with festivals like Lollapalooza in Chicago and Berlin an

87、d Wilderness Festival in the UK,which they love.Its about knowing them as a cohort and winning their hearts and minds.Claire Bennett,Global Chief Customer Officer,IHG Hotels&Resorts?The Promise of Travel in the Age of AI14SKIFT+MCKINSEY&COMPANYPersonalized travel from start to finishOnce travel comp

88、anies have collected relevant data,created customer segments,and identified value drivers using their MarTech stacks,they can take action.This involves deciding how and when to personalize customers experiences.Hyper-segmentation enables hyper-personalization:the ability to tailor the travelers jour

89、ney to their needs,preferences,and behaviors.This can take many shapes:personalized offers based on their last trip,optimized room type based on prior hotel feedback and other data,or tailored recourse for any disruptions.It comes down to whether I can create curated trip packages for you,based on w

90、hat we know about you or the preferences that you indicate,and then pull this content together and share it with you in a timely manner.Knowing your preferences,can I send you proactive notifications and draw you in?Rajesh Naidu,SVP&Chief Architect,ExpediaHyper-personalization is not just about incr

91、easing conversion rates.Its about providing the customer with a thoughtfully designed experience that accounts for their circumstances and adapts in real time(Exhibit 5).Accor,for example,is investing heavily in this space.Using an AI-powered customer-relationship management(CRM)suite,Accor draws on

92、 internal customer data to personalize the communication that goes out to each guest.Alix Boulnois,Chief Digital Officer,says,“We have more than 400 attributes in the system that enable us to do a much deeper segmentation.”She confirms that the company is seeing“massive uplift”and notes that“the rev

93、enues from our emails have been multiplied by three,just through this change.”Hyper-personalization,though,is not always the right solution.Different situations call for different levels of personalization depending on capabilities,context,cost,and potential benefit.For example,companies may not hav

94、e the required data,or the customer may exhibit new behavior.As Accors Boulnois says,“the same customer can have different needs depending on why theyre traveling,who theyre traveling with,and so on.The recommendation per customer is not static.”JetBlue Travel Products calls this“contextual personal

95、iza-tion.”If,for example,a customer who regularly flies from Fort Lauderdale to New York for business rebooks that route,JetBlue will hyper-personalize the experience.However,if the same EXHIBIT 5 HYPER-PERSONALIZATION HAS USE CASES THROUGHOUT THE TRAVEL JOURNEYAI IN ACTIONNavan puts AI into action

96、to drive hyper-personalizationNavan is a corporate travel and expense-manage-ment solution that uses data to segment its customers and personalize their experience.According to Ilan Twig,CTO and co-founder,in a typical flight or hotel search a customer might see over 500 travel options,“but you real

97、ly dont need 500.You need ten.”Navan seeks to reduce the number of results presented and make selection more efficient.Two customers who search for identical itineraries will receive highly personalized search results based on their profiles.Twig says that in around 40 percent of cases,the customer

98、books the top result.Twig believes that the next frontier of personaliza-tion is related to long-term memory:if a customer has previously interacted with Navans virtual travel agent,Ava,that conversation will be“remembered”when they plan their next vacation,even if months or years have passed.Ava mi

99、ght ask,“Should I take your husband and two children into account for this trip?”and will know that the kids are now five and nine years old.Navan also aims to make complex,multi-city book-ings seamless in the near future.Right now,according to Twig,“when it comes to multi-city,oftentimes it ends up

100、 with an agent.Thats the reality.”Twig believes that personalization,AI,and data-mining can circumvent that need.The Promise of Travel in the Age of AI15SKIFT+MCKINSEY&COMPANYcustomer suddenly books a first-time trip to Salt Lake City in winter,the company will look at similar travelers(same demo-gr

101、aphic,destination,time of travel)when determining how to proceed.Andres Barry,President of JetBlue Travel Products,says the aim is to balance“not just knowing you as an individual,but knowing what people who look and act like you do in the same situation.”Depending on my trip context,I can perceive

102、a hotel experience differently.For some trips,the hotel might be just a commodity;but if Im coming for an annual vacation,then a hotel is one of my biggest touchpoints.Understanding real-time booking behaviors is key to making sense of trip context and gaining a competitive edge.Markus Mueller,Found

103、er and Managing Director,GauVendiThe power of personalization extends beyond planning and booking.It provides an opportunity to deepen connections with customers throughout the travel journey,starting with timely,clear,and accurate communication via the customers preferred channel.This is especially

104、 true during delays and disruptions when thoughtful,personalized recovery plans have the potential to build lasting customer trust.The beauty of data-driven personalization lies in its ability to develop an ongoing conversation with customers by delivering the right message at the right time.We shou

105、ld stop calling ourselves airlines and call ourselves disruption-management businesses.I think the best airline in the world is going to be the one that manages disruption on behalf of its customers most seamlessly.Nikhil Ravishankar,Chief Digital Officer,Air New ZealandAI IN ACTIONMisapplied Scienc

106、es offers hyper-personalization to Delta flyers with Parallel RealityTM Technology Luggage in one hand,coffee in the other,anxiously monitoring a list of 100 flights while navigating a busy airport before the gates closethis is the experience Misapplied Sciences is looking to improve with its Parall

107、el Reality technology.By personalizing informa-tion on airport displays that is typically generalized for tens of thousands of passengers,the company aims to make the journey seamless.The Parallel Reality display shows personalized content,including depar-ture information,loyalty status,and distance

108、 to gate,to up to 100 viewers simultaneously.In partnership with Delta Air Lines,Misapplied Sciences debuted Parallel Reality at Detroit Metro-politan Wayne County Airport in summer 2022.To date,hundreds of thousands of passengers have opted in to use it.Unlike typical first adopters,these early use

109、rs are not particularly tech-savvy:they range from curious children to wary seniors as well as frequent flyers.Albert Ng,co-founder and CEO of Misapplied Sciences,shared that 89 percent of passengers“smiled when they went through the Parallel Reality experience.”The companys vision is not just a sin

110、gle displaybut rather“curb-to-gate personalization.”This will include greeting and updating passengers with tailored signage in their preferred language.From lounge recommendations to rideshare pickup direc-tions,Parallel Reality has potential to improve the full airport experience.Ng believes this

111、is just the beginningthis technology can be extended to other travel sectors including alternative transportation hubs,rideshare,and hotels.The Promise of Travel in the Age of AI16SKIFT+MCKINSEY&COMPANYBut theres a big difference between a conversation and a sales pitch.If companies only use persona

112、lization for marketing and transactional notifications,they miss an opportunity to build customer goodwill and run the risk of being ignored.Hopper,a mobile-only OTA,deploys targeted communication that is the opposite of transactional.The company alerts customers to the best time to book a flight or

113、 hotelwith 60 percent of its price alerts advising travelers to wait and buy later.Telling customers not to buy may be an unusual sales strategy,but these data-driven,personalized messages aim to build trust and keep Hopper top-of-mind for when customers do book their trip.Dont assume!Use data to te

114、st and learn what customers wantCustomer behavior is ever changing,and todays strategies wont stay fresh for long and require frequent pulse checks,iteration,and adjustment.Feedback,A/B testing,and time to action are critical.While many companies use these testing methodologies,only a few embed a co

115、ntinuous test-and-learn approach into all aspects of their organizationsmaximizing opportunities to gain knowledge and act on their findings.Hopper,for example,developed airline fintech products that allow customers to cancel a flight for any reason.When expanding into the hotel segment,the company

116、assumed it would establish a similar product offering cancelation prior to check-in.However,through customer testing and feedback,Hopper found that guests also wanted the flexibility to cancel at or after check-ina small but important variation.When the customer cancels,Hopper pays the customer a re

117、fund for the price of the hotel,but also makes sure that the hotel receives payment as well.Through A/B testing,Hopper has identified an alternative approach to keep both customers and suppliers satisfied.New technology and advanced analytics enable companies to sift through an abundance of data to

118、build a granular under-standing of their customers and craft bespoke experiences that satisfy evolving expectations.Chapter Two explores how some companies are using AI and digitization to reimagine the design and delivery of travel products to create a frictionless end-to-end experience.The Promise

119、 of Travel in the Age of AI17SKIFT+MCKINSEY&COMPANYChapter 2.Design your products to surprise and delightRecent advances are pushing the boundaries of what tech-nology can accomplish.Nothing illustrates this better than the meteoric rise of AI platforms like ChatGPTwhich garnered one million users i

120、n only five days.12While the pace of adoption may be unsettling to some,its prompting travel companies to reimagine service design and delivery.Unlike other consumer-facing industries where inter-actions end at the point of sale,travel encompasses customer experiences before,during,and after booking

121、.This presents both a challenge and an opportunity.The challenge:there are many points at which travel companies can fall short of delivering the basics,causing a buildup of customer anxiety.The opportunity:new technologies like GenAI and digitization 12 Steve Mollman,“ChatGPT gained 1 million users

122、 in under a week.Heres why the AI chatbot is primed to disrupt search as we know it,”Yahoo News,December 9,2022.can minimize friction and help travel companies deliver on their promises.Consider the following scenario:a family of four looking to book a summer vacation logs into their favorite OTA.A

123、GenAI-enabled assistant recommends personalized itineraries based on the familys travel history,preferences,budget constraints,and dates.After the family chooses an itinerary,the digital assis-tant recommends a custom add-on package which includes a stroller,SUV rental,and a reservation at the airpo

124、rt playground.The family checks in via the airlines mobile app and travels to the airport.They drop off their luggage at a self-service kiosk and proceed to security at a prereserved time.They quickly clear security using biometric recognition and receive a push notification recommending a family-fr

125、iendly lounge based on their departure gate and lounge capacity.After receiving a The Promise of Travel in the Age of AI18SKIFT+MCKINSEY&COMPANYboarding notification,the family follows personalized digital signage to the gate.While boarding,they receive a notification that their bags have been loade

126、d and will be on carousel three approximately ten minutes after landing.On the flight,the kids enjoy recommended shows based on their streaming history while the parents are offered their usual in-flight beverage.Even though the flight lands early,the strollers are waiting for them at the gate and t

127、he luggage is at the carousel.The car-rental company has automatically adjusted their reservation,so the family can make their way to the hotel immediately.They check in on the app and go straight to their room using a digital key.In all,their experience has been seamless and tailored across plannin

128、g,booking,and day-of experiences,enabled by new technology.I think were at the very beginning of the hockey stick.Economically,we are at the start of what is potentially the biggest technology disruption that humanity has ever seen.Luca Zambello,Chief Executive Officer,JurnyScaling new heights with

129、AIIn the past,capabilities such as creativity and aesthetic judg-ment were considered uniquely human and impossible to auto-mate.But AI,in particular GenAI,offers new ways to augment and scale these human powers,with enormous potential bene-fits:according to McKinsey research,generative AI has the p

130、otential to unlock between$2 trillion and$4 trillion in annual value across industries.13 In the travel context,these tools are capable of generating novel,creative solutions that meet and exceed customer expectations throughout the customer journey(Exhibit 6).14$24 trillion annual potential value u

131、nlocked by generative AI across industries,according to McKinsey researchDuring travelers“dreaming”and planning phases,companies use AI to deliver tailored bundles via customers preferred 13“The economic potential of generative AI”,McKinsey,June 14,2023.14 Seth Borko,“Generative AIs impact on travel

132、”,Skift Research,April 12,2023.EXHIBIT 6 GENAI ENABLES NEXT-GENERATION TRAVELThe Promise of Travel in the Age of AI19SKIFT+MCKINSEY&COMPANYchannels,ensuring they fall within budget,are truly customized,and are new to market.OTAs are leading the charge on this.One of the first OTAs to integrate advan

133、ced AI into its mobile app was T with TripGenie,a chatbot that helps customers plan their trips.15 Schubert Lou,COO of T,explains that the application was developed to meet customer demand for more“complex and context-rich”information.Lou highlights three key compo-nents of TripGenie:its language-pr

134、ocessing ability,the accu-racy of the information it provides,and its user interface.With TripGenie,T hopes to infuse its industry knowledge into the chatbots answers to enrich the customers experience.Lou also suggests future interfaces will allow customers to interact with webpages,view images,nav

135、igate to other pages,and make bookings quickly.Similarly,Expedia integrated ChatGPT into its mobile app with the goal of easing the travel planning process and narrowing the breadth of options.Customers can start a conversation in the app and get advice on destinations and activities,including photo

136、s and reviews of hotels to make the experience more engaging.Hotel and activity recommendations from the conver-15 Justin Dawes,“Why T thought it needed a Generative AI chatbot,”Skift,March 3,2023.sation are also saved to a new“trip,”which customers can access at any time.According to Rajesh Naidu,E

137、xpedia SVP and Chief Architect,“Weve spent the last two years re-archi-tecting our entire platform to take advantage of technologies like this GenAI,to be able to jump fast and quickly onboard these capabilities.”AI expedites processes that consume human time and require extensive expertise,and can

138、scale up human capabilities like product knowledge.Plum Guide,a service that curates and lists vacation rental homes,provides a prime example.The companys AI uses pattern recognition to assess rental homes in a way that emulates the decision making of its interior design professionals looking for a

139、specific aesthetic.Essentially,Plum Guide has used AI to bottle its creative taste to provide a boutique product with minimal need for human review.This does not replace interior designers but helps them assess hundreds of homes rapidly while enhancing customer expe-rience and options provided.Addit

140、ionally,Plum Guide uses GenAI based on ChatGPT to generate listing descriptions in a consistent,brand-appropriate tone.“Wed never be able to do anything like this without the ChatGPT framework,”says CEO Doron Meyassed.AI also allows companies to enhance experiences for travelers who are already on t

141、heir trips.Six Flags recently announced a EXHIBIT 7 PLAN YOUR EVENING WITH A VIRTUAL CONCIERGEThe Promise of Travel in the Age of AI20SKIFT+MCKINSEY&COMPANYpartnership with Google Cloud to integrate GenAI chatbots into its mobile app and website.These chatbots offer personalized guidance and recomme

142、ndations to visitors before and during their visits to the park.Omar Jacques Omran,Six Flags Chief Digital Officer,believes this“signifies a monumental leap in our strategic direction,ushering in a new era of technological empowerment for Six Flags.”16 Chatbots,specifically,present significant poten

143、tial for all travel companies.During the journey,future generations of chatbots can serve as virtual concierges that provide personalized recommendations based on real-time availability,constraints,and context(Exhibit 7).Cruises,resorts,and theme parks can use their amenity capacity and foot traffic

144、 data to inform these recommenda-tionsbalancing the need to maximize sales,optimize asset usage,and deliver customer satisfaction.In fact,Skift Research estimates that AI-powered chatbots represent an addressable travel market of more than$1.8 billion.1716“Six Flags to accelerate digital transformat

145、ion in amusement park industry and launch a cutting edge virtual assistant powered by Google Clouds generative AI,”Six Flags press release,August 29,2023.17 Seth Borko,“Generative AIs impact on travel”,Skift Research,April 12,2023.$1.8+billion estimated addressable market for AI-powered chatbots in

146、travel industry,according to Skift ResearchAs technology matures,use cases for GenAI in travel will likely increase.In McKinseys experience,GenAI has the ability to show real impact within three or four weeks as part of experi-mentationunlike any other IT seen before.The innovation that GenAI enable

147、s,from content generation to virtual assistants,has the potential to elevate travel experiences dramatically.However,with these abundant opportunities come multiple risks and considerations,including intellectual property viola-tions,privacy breaches,and social and environmental impact;these require

148、 skillful navigation.18 Companies may also need to be cognizant of customer concerns.Despite evidence that users are beginning to expect the level of service and personalization that AI provides,they may still be hesitant to engage with it:a recent McKinsey survey revealed that,across generations,re

149、spondents were consistently more willing to use a tool offering 18“What every CEO should know about generative AI,”McKinsey,May 12,2023.EXHIBIT 8 CONSUMERS WANT THE CONVENIENCE OF AI BUT ARE LESS WILLING TO USE TOOLS LABELED AS SUCHSource:Monica Anderson et al.,AI and human enhancement:Americans ope

150、nness is tempered by a range of concerns,Pew Research Center,March 17,2022;McKinsey Travel Loyalty Survey,July 2023,n=3,200The Promise of Travel in the Age of AI21SKIFT+MCKINSEY&COMPANY“personalized travel itineraries”than one labeled“AI-powered virtual assistant.”19 And a 2021 Pew Research Center s

151、urvey noted American respondents worries about digital privacy,lack of human connection,and AIs potential to make mistakes(Exhibit 8).20Dont forget about digitalAI is only part of the answer.Across the travel industry,digital innovation continues to help companies deliver on commit-ments made to cus

152、tomers.Many of these assets and tools rely on common,existing systems and capabilities making them more widely attainable.19 McKinsey Travel Loyalty Survey,July 2023,n=3,200.20 Monica Anderson et al.,“AI and human enhancement:Americans openness is tempered by a range of concerns”,Pew Research Center

153、,March 17,2022.A 2022 survey by Hospitality Technology revealed that 73 percent of travelers are“likely or very likely”to return to a hotel that meets their technology expectations.21 Skift Research has identified several such offerings:guest apps and in-room tech,guest messaging,digital check-ins a

154、nd kiosks,and keyless entry.Several simple tools can boost guest satisfaction and reduce friction during the trip(Exhibit 9).The magnitude of these individual tools is amplified when seamlessly integrated together,making it easier for customers to use digital applica-tions throughout their hotel sta

155、y.In a growing number of instances,travel companies have chosen to partner with a third party as a means to minimize friction and deliver seamless experiences across the travel ecosystem.For instance,Lyft partnered with Delta to send push notifications to customers based on their airline flight 21 D

156、aniel J.Connolly,Jungsun Kim,and Robert Firpo-Cappiello,“2022 Customer engagement study:Embracing digital transformation,”Hospitality Technology,August 1,2022.EXHIBIT 9 DELIVER ON THE BASICS WITH DIGITIZATION?citizenM is a global hotel chain and lifestyle brand based in the Netherlands,with 31 hotel

157、s in 18 cities.One of the companys defining characteristics is a highly digitized customer experience,powered by their mobile app.While one might expect that a more digitized experience results in less human connection,Head of Customer Experience,Casper Overbeek,insists that citizenM is a“human-firs

158、t hotel.”He explains that digital in itself is not a goalit is a means to achieve something.citizenMs digital experience removes many traditional points of friction for hotel guests.Rather than waiting in line for a front-desk representative,customers visit a self-service kiosk where they can check

159、in,scan their passport,and select their room.Overbeek stresses that this process allows the hotel ambassadors(their frontline workers)to engage more positively with hotel guests.Instead of looking down at a computer screen to complete the check-in process,ambassadors can ask about the guests day,hel

160、p with luggage,or chat about Impact story:How technology enabled a better human experience at citizenMan upcoming basketball game,connecting more with the guest during check-in.The digital experience continues when the guest approaches their room.A physical hotel key will be replaced by the citizenM

161、 app,allowing the guest to unlock the door with just their phone.Once inside,the temperature,lighting,media,and more,can be adjusted from the app to make the stay as comfortable as possible.The guest can even order food and drink from the app,or scan artwork on the walls to learn more about the arti

162、st.These digital experiences allow for“affordable luxury,”where,according to Overbeek,one can enjoy“a four-star experience at a three-star price.”Each hotel is run efficiently with a small teamall of whom can spend time on what matters most to their customers because the technology handles tasks tha

163、t do not require a human touch.The Promise of Travel in the Age of AI22SKIFT+MCKINSEY&COMPANYinformation to ensure timely rides to and from the airport.According to Zach Greenberger,Lyfts Head of Strategic Busi-ness Development and Global Supply Management,the apps latest features were built to meet

164、 travelers desire for reliable,on-time,and coordinated travel experiences.22Providing delightful travel experiences through technology will be a hallmark of next-gen travel.The final chapter explores how companies can empower their workforces to follow through on the customer promise using digital a

165、nd analytics for more effi-cient decision making and trainingimproving the workforces performance and job satisfaction.22“Lyft and Delta expand partnership to provide smoother experience for travelers with in-app flight status and additional reminders,”Lyft,December 15,2021.When we think about digit

166、al solutions,they are always there to cater to,equip,and accommodate the human connection.Casper Overbeek,Head of CX and Digital,citizenMThe Promise of Travel in the Age of AI23SKIFT+MCKINSEY&COMPANYChapter 3.Empower your workforce to follow through on promises madeAn engaged and productive workforc

167、e is essential to deliver experiences and products that satisfy customersand one of the greatest obstacles that travel companies face is attracting,training,and retaining top talent.During the first year of the COVID-19 pandemic,the global industry lost 62 million jobs;the travel labor market has ye

168、t to fully recover.23Skift Research has found US accommodation providers employ 12 percent fewer workers than they did before the pandemic,and finding suitable staff takes longer.Hospitality positions now take,on average,five to six weeks to fill compared to three to four weeks prepandemic(Exhibit 1

169、0).24 In recent years,employee turnover has increased drastically:93 percent of existing staff were separated(quits,layoffs,and retirements)in the US food-service and accommodations industries in 2022,23 Global economic impact and trends 2021,World Travel&Tourism Council,June 2021.24 Based on data f

170、rom U.S.Bureau of Labor Statistics.See State of travel 2023,Skift Research,July 21,pared to 80 percent in 2019.25 Currently,7 percent of US travel and tourism jobs are vacant,jumping to 11 percent in the European Union.These structural labor hurdles,compounded by high turnover,may persist for the fo

171、reseeable future.However,the industry can help increase workforce capacity by equipping its frontline workforce with the right tools at the right time.In fact,McKinsey Global Institute estimates that up to 30 percent of hours worked by people today could be automated by 2030,largely accel-erated by

172、GenAI.26 This can free up employees to focus on the things they enjoy most and that make the travel industry tick:high-value personal interactions with customers.Serving as true brand ambassadors,employees can follow through on promises made to customers and,in turn,positively impact the bottom line

173、.25 Ibid.26 Generative AI and the future of work in America,McKinsey Global Institute,July 26,2023.EXHIBIT 10 ITS TAKING LONGER FOR FOOD-SERVICE AND ACCOMMODATION EMPLOYERS TO FIND SUITABLE STAFFSource:Skift Research analysis of data from U.S.Bureau of Labor Statistics,data as of May 2023.See State

174、of travel 2023,Skift Research,July 21,2023The Promise of Travel in the Age of AI24SKIFT+MCKINSEY&COMPANYBoosted by GenAI,30 percent of hours worked today could be automated by 2030,according to McKinsey Global InstituteTwo promising opportunities to improve workforce and oper-ational performance thr

175、ough technology stand out across the travel industry:augmenting frontline capacity and upskilling talent.We select our students because we believe they have the hospitality gene,the gene of service.Its this gene that motivates our graduates to work with people every day.Our graduates understand the

176、value of technological innovation and automation,but technology often isnt a passion for them.Rather,our graduates value technology that frees up their time to do what they loveengage with guests and serve at the highest level.Harsha LAcqua,CEO,Saira HospitalityMake superheroes of the frontlineOften

177、,technology and automation are perceived as negative forces that eliminate jobs.However,in an industry facing a persistent labor shortage,a reframing is necessary.New tools and technologies are not meant to replace the human touch,but to enhance and scale it,allowing workers to focus on tasks and de

178、cisions that require their thought and intervention.Not only can technology augment frontline capacity,it can also improve workforce satisfaction and operational performance.Today,complex decisions involving a large number of variables rely on expertise and“art”rather than automation and“science”and

179、 are often made using outdated technology(such as greenscreen or rudimentary interfaces).This not only leads to a best-guess approach,risking negative outcomes,but also perpetuates a reliance on specialized knowledge.With all the nuances to AI IN ACTIONAssaia provides the right information at the ri

180、ght time to the frontlineFounded in 2018,Assaia sells AI technology to aid day-of operations for airlines and airports with real-time visibility and historical operational data.According to Chief Customer Officer Christiaan Hen,Assaias long-term goal is to eliminate human-caused delays from the avia

181、tion ecosystem.Many daily operational challenges result from missing,false,or delayed information.Assaia aims to share the right information at the right time with frontline workers,“equipping the people with the right tools to do their job in a better way,”according to Hen.The software analyzes vid

182、eo streams to provide real-time data about what is happening on the airport apron.Using Assaias reports,dashboards,and insights(such as ML-powered predictions of flight departure times),airline staff can respond much faster.For example,it may take a flight crew up to 15 minutes to notice that a cate

183、ring truck has not arrived on schedule;only then would they notify the turnaround coordinator.With Assaias technology,the coordinator would receive an immediate notification,allowing them to resolve the problem right away.This technology can reduce ground delays by four to five minutes on average,ac

184、cording to Hen,saving airlines around$400 to$500 per flight by FAA esti-mates.Reducing delays also helps airports improve gate capacity by maximizing gate utilizationpref-erable to the costly,slow,and difficult process of constructing additional gates.The Promise of Travel in the Age of AI25SKIFT+MC

185、KINSEY&COMPANYconsider when making decisions,such a steep learning curve can be discouraging and distracting for the frontline.Choices made around demand,labor,and asset allocation often involve traditional forecasting models that rely on limited histor-ical variables to account for market shifts.Wh

186、ile these models served the industry well for decades,in todays rapidly changing and increasingly interconnected environment they may no longer be up to the task.Travel companies developing new tools for the frontline are using sophisticated models backed by AI and MLspecifically simulation modelsto

187、 process a multitude of complex inputs.To understand how simulation models work its helpful to imagine a chess engine,which analyzes the state of a chess game and suggests the next best moves.However,unlike chess engines,which analyze a finite number of possible moves over 64 squares,simulation mode

188、ls have the power to reflect the real world,where an infinite number of players,pieces,and boards are in play.Instead of outlining one future scenario,simulation models can run an infinite number of permutations and assign probabilities to different outcomes,helping travel companies plan and employe

189、es make decisions.One specific application of simulation modeling is the use of a digital twin.This is a virtual replica of the physical worlda product,machine,or process that is connected to real-time data sources and can simulate multiple outcomes.Digital twins conduct rapid“what-if”analyses that

190、companies and employees can use to help guide“day-of”decision making.27Assume a hypothetical scenario where you have 100 percent predictability and 100 percent stabilitythen your plan is always the same as what actually happens in practice.If we have real-time accurate data on whats happening right

191、now,we can create much better predictions.Christiaan Hen,Chief Customer Officer,Assaia27“What is digital twin technology?”McKinsey,July 12,2023.The Promise of Travel in the Age of AI26SKIFT+MCKINSEY&COMPANYThe cruise sector,for example,could benefit from digital twins.Customers book well in advance

192、for a specific itinerary,including ports of call and activities.However,many situations(such as storms or unexpected port delays)can arise and force a cruise to deviate from this itinerary.A preplanned diversion may turn out to be suboptimal in shifting conditions.Instead,ships could use on-deck dig

193、ital twins to process real-time data and quickly generate next-best itinerary options,minimizing passenger disruption and frustration.Digital twins can also reduce the decision fatigue and infor-mation overload that staff often experience.For instance,to maintain operations in inclement weather,an a

194、irlines crew scheduler may have to make tens of thousands of decisions over an eight-hour shift.Often these decisions are too complex to be made without automated assistance.With a digital twin,the bulk of rerouting can rapidly be optimized,leaving the crew scheduler free to focus on high-impact dec

195、isions that may involve new or unexpected variables(Exhibit 11).Technologythe new coach on staffAs noted,the travel labor market is extremely tight.As compa-nies look to fill widespread vacancies,they need to filter through a high number of applications.AI-and ML-enabled models help to do this quick

196、ly while eliminating human bias from the recruitment process.28However,finding the right people is only part of the challenge.The next step is bringing new hires up to speed while continu-ously upskilling the existing workforce.Technology is making this easier:industry leaders are using virtual real

197、ity(VR)and augmented reality(AR)to scale training.This technology simu-lates lifelike scenarios based on historical examples to intro-duce frontline employees to multiple situations in a matter of hours,equipping them with the confidence and skills to hit the ground running.28 Patrick Coffee,“AI set

198、 to upend the talent search at ad agencies and brands,”Wall Street Journal,August 8,2023.EXHIBIT 11 A DIGITAL TWIN CAN PROVIDE DECISION COACHINGSource:Monica Anderson et al.,AI and human enhancement:Americans openness is tempered by a range of concerns,Pew Research Center,March 17,2022;McKinsey Trav

199、el Loyalty Survey,July 2023,n=3200An airline crew scheduler could use a digital twin to assess the likelihood of a crew not completing a trip,conduct what-if simulations,decide what actions to take,and receive live feedback from an AI coach.For example,a delay in one flight might place another at ri

200、sk for completion.The crew scheduler can choose to swap crew,use reserve crew,or hold crew.Based on the simulations,the tool might recommend flying the reserve crew to a new location to complete the last leg of the delayed flight.Schedulers can also monitor their ongoing performance based on a dynam

201、ic scorecard and use the AI coach for additional training.The Promise of Travel in the Age of AI27SKIFT+MCKINSEY&COMPANYWe must help our peopleour frontline employees,our customer-service agents,our dispatchersto make more decisions faster,hopefully eliminating the need to make the most mundane deci

202、sions,so they can reserve their expertise for solving really complicated problems.Jason Birnbaum,Chief Information Officer,United AirlinesIn the face of high staff turnover,MGM Resorts partnered with Strivr,a VR-based company,to train new frontline casino workers via VR headsets.29 According to Stri

203、vr,companies have reported a 96 percent reduction in training time and a 10 percent increase in customer satisfaction after running this immersive learning program.30AI coaching systems can supplement VR-based learning by customizing training and performance management to indi-vidual employee needs.

204、AI coaches use performance data from 29 Grace Dean,“MGM Resorts is letting job seekers try out roles using virtual reality as it looks to reduce employee churn,”Business Insider,December 12,2021;Phil Albinus,“Rising Star goes all in on VR talent marketplace for MGM Resorts,”Human Resource Executive,

205、June 14,2022.30 Strivr,“Nine VR training benefits your organization can take advantage of,”blog entry by Strivr.multiple sources to build a picture of an employees strengths and weaknesses and deliver personalized training recom-mendations at a tailored cadence,allowing for continuous improvement an

206、d ultimately higher job satisfaction.31Take a hotel-reservations call-center supervisor,who can only oversee one employee at a time;often,employee performance must be measured by listening to multiple customer-service calls.An AI program can listen to all these calls at once,simul-taneously evaluati

207、ng employee decisions,communication,and customer satisfaction.The program can then synthesize the information,score the interactions(for example,for empathy displayed and problem resolution),and deliver recommenda-tions to the supervisor.32Advanced technology improves decision making and accelerates

208、 frontline upskilling,allowing for greater job satisfaction and a renewed emphasis on the essence of travelhuman relation-ships.The concluding chapter of this report includes a checklist that will help you evaluate your companys ability to use digital technology to understand your customers,design a

209、nd deliver products,and empower your workforce.31 Jorge Amar,Shreya Majumder,Zachary Surak,and Nicolai von Bismarck,“How AI-driven nudges can transform an operations performance,”McKinsey,February 11,2022.32 Ibid.The Promise of Travel in the Age of AI28SKIFT+MCKINSEY&COMPANYConclusionWe believe this

210、 is a moment of optimism for the industry.If the last three years have taught us anything,its that people want to travel:even when the macroeconomic outlook softened,airline and accommodation bookings remained among the last discretionary expenses that customers were willing to cut.33The historical

211、share of travel as a percentage of GDP,along with continued corporate-travel recovery and an increased consumer propensity for unique experiences,sets the stage for accelerated growth.Looking ahead,travel is predicted to grow an average of 5.8 percent a year up to 2032more than double the expected g

212、rowth rate of the overall economy(at 2.7 percent a year).34This does not mean that travel companies can simply sit back and reap the benefits.The need remains to improve the travel experience for customers and employees.Whether youre a 33 Based on data from U.S.Travel Tracker,Q1 2023,May 2023.See St

213、ate of travel 2023,Skift Research,July 21,2023.34“Travel&Tourism sector expected to create nearly 126 million new jobs within the next decade,”World Travel&Tourism Council,April 21,2023.travel supplier,a distributor,a large global brand,or a growing startup,it is critical to ensure that your custome

214、rs travel expe-riences are seamless and personalized.Powerful new technology can help you achieve this.Digital and analytics tools aid travel companies to alleviate pain points and empower their workforces to close the gap between promises made and promises kept.The sector is ripe for innovation,and

215、 there are a growing number of avenues and industry partners to get you started.The only wrong move is no move.Whether this is your first step or you are well into your new-tech-nology journeyeveryone can take action today.Use the check-list that follows to evaluate your readiness to participate in

216、the next golden age of travel.The Promise of Travel in the Age of AI29SKIFT+MCKINSEY&COMPANYChecklist for the age of AISome travel companies are already successfully deploying digital technology,AI,and ML to reshape how they interact with customers,develop and deliver products and services,and manag

217、e people and operations.Theyve taken the following actionsare you on track?Created a digital wish listas if the company had infinite time and resourcesPrioritized wish list based on potential short-and long-term benefits as well as the companys strategic vision and available resourcesAssessed the sk

218、ills and talent necessary to execute against the prioritized wish listBuilt the right team and identified roadmap to fill remaining gaps Inventoried existing internal customer data Determined which data variables drive customer behavior and predict customer buying decisionsIdentified relevant third-

219、party data and integrated with internal data to build a complete customer picture Considered using a robust MarTech stack to continuously learn and evolve with customers Defined a dynamic segmentation and personalization approach based on customer personas Adopted test-and-learn mindset to continual

220、ly implement and refineMapped the end-to-end customer journey and identified pain points Used analytics to determine which pain points impact customers the mostConsidered new technology(like AI)to enhance and reimagine the customer journeyBrainstormed improvements to current digital offerings that w

221、ould minimize pain points(such as more timely communication)Built a product roadmap based on timing and importance of featuresGeneral considerationsKnow your customers like you know your friendsDesign your products to surprise and delightPlannedDoneNot plannedThe Promise of Travel in the Age of AI30

222、SKIFT+MCKINSEY&COMPANYEmpower your workforce to follow through on promises madePlannedDoneNot plannedDiagnosed top day-to-day employee pain pointsDetermined if digital tools can resolve top pain points(for example,automate repetitive tasks)Provided workforce with real-time visibility into critical a

223、reas of daily operationsUsed simulation models to plan for multiple future-state scenariosBuilt decision-making tools(such as digital twins)to choose optimal solutions for complex problemsDefined opportunities to improve training(using tools such as simulation training,VR,AR)and provide feedback(usi

224、ng smart-AI tool)The Promise of Travel in the Age of AI31SKIFT+MCKINSEY&COMPANYAuthorsMcKinseySusann Almasi is an associate partner in McKinseys Carolinas office.Susann works exten-sively with companies across the travel ecosystem,focusing on leveraging digital and analytics capa-bilities to unlock

225、top-line growth.Alex Cosmas is a partner in McKinseys New York office.Alex leads advanced analytics in the travel and logistics sectors,applying data science to commercial and operational problems.He special-izes in the areas of customer analytics,consumer choice,revenue management,and pricing.Sam C

226、owan is a consultant in McKinseys Minne-apolis office.Sam works extensively with travel and logistics companies and specializes in digital operations and corporate strategy.Ben Ellencweig is a senior partner in McKinseys Stamford office.Ben leads QuantumBlack and AI by McKinsey and spearheads the fi

227、rms growing ecosystem of AI and generative AI partners.He advises clients on harnessing the power of AI to deliver growth and bottom-line impact across sectors.Vik Krishnan is a partner in McKinseys San Fran-cisco office.Vik leads McKinseys Travel practice in North America.He advises companies in th

228、e aviation,travel,and aerospace sectors on oper-ational-performance improvement,digital trans-formation,and growth.Nirva Vassa is a consultant in McKinseys Atlanta office.Nirva has worked with multiple clients across travel and logistics,focusing on operational improvement and customer experience.Sk

229、iftWouter Geerts is Head of Research at Skift and is based in the Netherlands.Wouters research focuses on the hotel sector,short-term rentals,and technology.Seth Borko is a Director of Research at Skift and is based in New York.Seths research focuses on online travel,hotels,and travel economics.Pranavi Agarwal is a Senior Research Analyst at Skift Research and is primarily based in London.As a prior sell-side equity research analyst,Prana-vis research focuses on company financials of the hotel and online travel sectors.+September 2023