A New Type of Travel Agency: AI Meets Human Expertise


Read Time

3 min


Share Article

Over the last two decades, OTAs and direct-supplier ticketing websites have revolutionized the industry and forced many brick-and-mortar travel agencies to reinvent themselves, find their niche, or close their doors altogether.

Many of the travel agencies that remain standing serve a wealthy clientele. When Travel + Leisure wrote about the importance of travel agents in May 2015, they cited trips like a 32-person, two week, six city trip across India as an example that highlights a travel agent’s indispensability.2 While one may appreciate the services provided to make this trip possible, it is not a relatable scenario to most travelers. Yet, according to IBIS World, the travel agency industry is growing once again and showing signs of a broad turn to experts to help plan travel.3

We see four trends that will increase demand for travel agents in the near future:

  1. OTAs that serve endless choices, not solutions
  2. The possibility for better, more personalized recommendations powered by big data and artificial intelligence (AI)
  3. A new generation of travelers who have come of age on mobile devices
  4. The ongoing premium placed on ‘authenticity’

When it comes to booking, our study showed 79% of individuals want customization and ease. The majority (56%) of those surveyed have used a travel agent in the past, citing deals, time savings, and expert advice as the best reasons to use a travel agent. Of those who had not used an agent, 30% didn’t do so because they enjoyed the planning process and 25% found it to be too expensive. Another 21% said, “I trust myself more.”

Screen Shot 2017-01-25 at 11.59.15 AMScreen Shot 2017-01-25 at 11.59.42 AM

Importantly, frequent travelers value an agent’s expertise and ability to save time, whereas infrequent ones value an agent’s ability to save money and stress. While 85% of individuals are willing to have another party help plan their trip, agencies need to help consumers understand more clearly how they offer personalization that demonstrates desirable ROI.

Traditional travel agents should also be warned of new services like Lola, which fuse a chat interface, AI and human expertise to generate trips.

Lola offers a glimpse at the future of travel agencies – personal, immediate and delivered through a chat interface. The brand deliberately avoids the data tables that plague almost all other booking experiences. It is the only travel experience we know of that is built for an audience who has come of age conversing through mobile intermediaries.

Screen Shot 2017-01-25 at 12.00.46 PM

Key Takeaways:

  • A combination of AI and human expertise is about to disrupt the travel agency industry.
  • Travelers are receptive to planning assistance for an agent provided there is demonstrable ROI (time saved, money saved, expertise, or personalization).

Learn more about how our travel marketing agency can help elevate your brand.

Let's start something great