Amidst the hubbub of modern life, vacation time is increasingly precious. But to make the most of our rare days away, we often devote significant time — up to two full working days — to research, plan and book trips. According to a recent survey of U.S. consumers, travel planning has become a major stressor, particularly for younger generations. About one-quarter of millennials rate trip planning as more frustrating than filing their taxes or waiting at the doctor’s office, while just over 20% of millennials and Gen Z combined feel they spend too much time on the planning and booking phases of travel.

Before the advent of third-party online booking sites or the endless scroll of social media inspiration, consumers relied on travel agents to create tailored trips. While this model is making a modest comeback, AI-aided travel planning offers travel brands — especially those with loyalty programs — an opportunity to provide a similar level of customized service. From personalized offers and detailed trip itineraries to real-time support via chatbots, AI can transform the travel experience, enabling brands to engage with customers throughout their journey and expand their market share.

AI Travel Tools: Consumer Perspectives

This summer, arrivia asked 1,087 U.S. consumers 18 and up about their views on AI travel tools. The report, Beyond the Hype: The Rise of AI-Aided Travel Planning, found that almost half were open to adopting this technology, with 33% of adults saying they already use AI for planning or booking.

Unsurprisingly, Gen Z leads the charge at 63%, indicating a strong opportunity for brands to target younger generations. The main benefits users identified are value and convenience: Just under 60% said AI allowed them to save time and 56% used it to find the best deals.

Personalized travel experiences are also a highly desirable component of AI-powered travel tools. According to thesurvey, 90% of respondents consider personalization important during trip planning — a need that AI-powered loyalty programs, are uniquely positioned to fill.

Why? Because these member-based programs have access to vast amounts of first-party data, such as purchase history, family status, accommodation preferences, and typical vacation times. By integrating this data with third-party online activity as well as offline sources, such as customer service calls, providers can build AI models that anticipate and meet individual preferences, an advantage that non-loyalty-based tools struggle to achieve.

Loyalty members willing to share their data however expect enhanced value in return. In the arrivia survey, 52% of consumers believe AI tools could improve their experience by alerting them to exclusive deals and promotions available through their loyalty programs. Additionally, 46% desire instant support and travel updates, such as flight changes and loyalty points status, while 41% would embrace AI capabilities that streamline booking by automatically applying their loyalty points and benefits.

The Loyalty Advantage of AI

Though AI trip planning tools are still in their infancy, loyalty providers who want to understand how impactful this technology can be need only to look at how other industries have used it to grow their own loyalty programs and improve customer engagement.

Starbucks for instance grew its loyalty program to a record 34.3 million active U.S. members in the first quarter of 2024 thanks in part to its proprietary AI platform Deep Brew. This platform analyzes customer data and preferences to provide personalized content such as customized menu recommendations targeted offers and rewards, resulting in more frequent visits to the company’s cafés.

Marriott also leverages AI in a variety of ways, recently testing natural language processing to enhance its Bonvoy members’ experience on their ‘Homes & Villas’ portal. This helps users find ideal vacation rentals by focusing on experiences they’re most passionate about and uncovering destinations they might have overlooked in traditional searches.

Transparency and Trust in AI Services

Despite AI’s potential to broadly improve the customer experience, some consumers remain cautious. A Pew Center survey found that 80% of Americans familiar with AI believe that companies may use the technology in unintended ways, even though 62% acknowledge its potential to make life easier.

To build consumer confidence, loyalty providers must lead with transparency — communicating clearly about how AI collects and uses data, adhering to local data protection rules, employing robust security measures and making AI features opt-in.

As AI continues to embed itself into the travel industry, marketers have an opportunity to innovate loyalty programs and increase customer engagement through personalized, data-driven approaches. The key to successfully leveraging AI lies in transparency, ethical data use, and providing customers with agency and control over their own experience.

When these principles are met, AI can help foster a deeper connection between brands and travelers, setting the stage for lasting customer relationships.

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