The use of personalisation within travel apps can increase customer satisfaction, foster engagement and strengthen brand loyalty, a new report outlines.
GlobalData’s Travel Apps report details that there has been a marked increase in the expectation for personalised services and products among consumers in the travel and tourism industry. Indeed, such has become the importance of personalised offerings to consumers that GlobalData believes it is supplanting brand loyalty in terms of importance – although, well implemented, it can help to build brand loyalty.
Smarter leaders trust GlobalData
Referencing GlobalData’s Consumer Survey Q4 2024, the report indicates that nearly a third (32%) of global respondents consider personalisation ‘essential’ for their purchases to be ‘tailored to their interests’ while 44% view it as a ‘nice to have’ feature.
“Companies must tailor their offerings to accommodate varying preferences across different ages and genders, not only to ensure relevance and suitability but also to promote inclusivity,” the report explains.
AI for travel app personalisation
The report goes on to note that artificial intelligence (AI) is now being used to improve personalisation in travel apps, such as for recommending accommodation or activities based on users’ past searches.
“A primary application of artificial intelligence in travel apps is algorithms analysing user interactions to discern consumer trends,” it says. “This analysis facilitates the delivery of tailored experiences, such as the automatic recommendation of hotels that align with a user’s preferences. This technology is increasingly harnessed in travel apps to generate personalised search outcomes or to suggest content areas of greater relevance.”
In addition to helping to deliver more tailored results and content, though, AI-powered personalisation is also being employed to help tailor price-points. This, the report says, “has the potential to stimulate higher-value bookings, particularly if the recommendations are perceived as valuable.”
It adds: “The use of artificial intelligence in travel planning transcends mere personal suggestions; it extends to cost optimisation. Travel apps employ machine learning (ML) algorithms – a subset of AI that learns from various data types – to make precise predictions. This results in the analysis of historical pricing data, the anticipation of future price fluctuations and the provision of advice on the optimal times to book flights, accommodations and activities. Consequently, users benefit from not only personalised recommendations but also informed, cost-effective travel planning decisions.”
Fundamentally, the report states that the growing role of AI and ML in travel apps has significantly enhanced the level of personalisation available to travellers. This, in turn, has a “substantial” impact on business performance, it says.
“Travel companies that integrate AI-driven recommendations into their platforms often experience higher conversion rates and improved customer retention,” according to the report. “By offering users exactly what they are looking for – even before they actively seek it – apps can increase engagement and drive revenue through targeted upselling. Moreover, dynamic pricing models can be adjusted based on an individual’s likelihood of making a purchase, ensuring a competitive but profitable pricing strategy.”
