How AI is changing the face of travel industry
AI-driven innovations have personalized and enhanced the vacation experience, replacing rigid itineraries with more immersive journeys. Recent advancements in AI and analytics have revolutionized trip planning and execution, with online travel agencies leading the way in providing customers with unparalleled information and flexibility.
AI at the helm of change
AI can bring together diverse markets and connect travellers with the perfect experiences. We’re seeing seamless integration across the travel value chain, from user behavioural analysis for personalized recommendations to biometric systems and hotel facial recognition. Online virtual assistants can answer user queries, offer flight recommendations, book tickets, and even provide detailed itineraries for a trip to a specific geography on a budget in real time. OTAs (Online travel aggregators) are retaining users through intelligent use of data. AI can understand people’s travel histories and recommend highly curated plans tailored to their needs. Hotels can personalize guest experiences with tailor-made plans and menus, anticipating preferences to build lasting loyalty. Perhaps most impressively, AI-powered tools such as augmented reality and virtual reality can allow people to sample their destinations before booking and explore their destinations better with guided tours and assistance.
Making Travel Planning a Delight
Users enjoy exploring destinations through vibrant imagery and personalized recommendations, researching unique experiences, and comparing accommodations. To assist users in this journey, OTAs offer multiple itineraries for users to explore, various booking and travel options, and content from multiple sources to learn more about these destinations, all of these in a personalized and intuitive interface.
Corporate travel getting smarter
Corporate travel management today revolves around providing options while ensuring policy compliance. With the integration of AI, this dynamic is set to transform. Picture a scenario where a traveller needs to meet a client in another city: an AI travel assistant can understand these needs, the traveller’s preferences, and company policies.
The Future looks exciting
As we overcome further challenges, the scope for innovation will extend. Barriers will continue to diminish, and ease of experience will evolve to be even more seamless. OTAs could find ways to integrate richer AR/VR experiences that put users at the heart of their prospective journeys.
53% consumers have no trust in influencer content at all
53% consumers have no trust in influencer content at all, reveals a recent iCubeWire survey, conducted with a sample size of 1000 people. While 23% of the consumers stated that they moderately trust it, 24% admitted that they do believe in the content posted by the influencers. “The survey results serve as a wake-up call for the influencer marketing industry. It’s essential for influencers and brands to understand the importance of authenticity in order to foster a loyal and trusting audience,” Sahil Chopra, CEO and founder, iCubeWire, commented. The survey also revealed that 37% participants believe that influencer recommendations are never genuine and 36% consumers responded that influencer content never affects their purchasing decisions. From what is understood, influencer content is placed at a questionable stance with 41% respondents stating influencers have never influenced their voting decisions while 30% said they have never felt hurt by influencer content.
UPI top choice to make digital payments, 90% consumers favour digital transactions
With digital adoption fast gaining currency, India is likely to see retail digital payments double to $ 7 TR by 2030 from current levels, a study by Kearney and Amazon Pay said. In the report ‘How Urban India Pays’, Kearney-Amazon Pay said strong adoption of digital payments in online purchases has potentially led to a permanent shift in consumer behaviours, fueling offline adoption as well. While 90% of the respondents of the survey preferred digital payments when making online purchases, affluent consumers lead the way with the highest Degree of Digital Payment Usage (DDPU), tending to use various modes of digital payment for 80% of their transactions. “Millennials and Gen X are leading in the adoption of all types of digital payment instruments,” it said. However, it added, the movement transcends age barriers, as even Boomers (60 years and above) are rapidly embracing cards and digital wallets. In terms of gender parity, the report said, both men and women are leveraging digital payments. Digital payments have penetrated small towns, with respondents in these areas highlighting that 65% of their transactions are digital, while respondents in larger cities cited this ratio to be 75%. In terms of modes of digital payment, the report said that UPI reigns supreme with 53% of consumers preferring it for online purchases. Digital wallets and cards (debit, credit and prepaid) are preferred by 30% of consumers. “In line with India’s digital journey, retail digital payments have grown dramatically over the past five years – from $ 300 BN in FY18 to $ 3.6 TR in FY24. By FY30, they are likely to double to $ 7 TR,” the report said. Now in offline purchases, cash is still predominant with 25% of consumers preferring UPI and 20% inclined towards digital wallets and cards.
86% prioritize quality when shopping groceries online
Product quality has emerged as the paramount criterion for 86% of online grocery buyers in India when selecting platforms, according to a study by LocalCircles. The nationwide study, based on over 70,000 responses from 227 districts across India, revealed that value for money and delivery time are also significant factors, with 73% of respondents citing these as important criteria. The study also indicates a significant shift in purchasing patterns, with the percentage of consumers buying groceries as needed rather than on a scheduled basis surging from 23% in 2023 to 57% in 2024. In terms of platform performance, a ratings pilot conducted in Noida over a six-month period showed Amazon Fresh leading in quality, value, and service. Meanwhile, BigBasket excelled in selection and exclusivity, while quick grocery platforms such as Zepto, Blinkit, and Instamart showed improvements in service and selection ratings while maintaining their 30-minute delivery promise. Further, the study highlights evolving customer service expectations, with 60% of consumers preferring automated refunds without physical inspections or lengthy phone interactions for unsatisfactory purchases. “Quick commerce platforms are under immense pressure to deliver not just speed but also quality. Implementing stringent quality checks while maintaining rapid delivery times is a delicate balancing act,” an analyst said.
Marketers embrace CTV, Retail Media as emerging mediums of advertising
As marketers look beyond the traditional formats of advertising, connected TV (CTV) and retail media are emerging as new mediums to reach consumers. As per an EY-FICCI report, India has around 20-25 MN CTV households. According to an ET report, in FY23 retail media spend for Amazon and Flipkart together was at Rs 30,000 crore. JioAds aims to go beyond what Google and Meta offer. Its goal is to drive value for brands and the entire ecosystem, including both advertisers and publishers. Since Jio operates across various sectors, including retail, e-commerce, telecommunications, and content, it has a comprehensive view of user behaviour throughout the day. By analyzing this behaviour, it can deliver targeted advertising to consumers based on their activities and locations. Jio’s approach to advertisers is not about securing specific placements on particular websites but about understanding the audience they want to reach and connecting with them at the right moments. Today’s marketers seek retail media solutions that address the entire consumer funnel, not just the final sale. While driving conversions remains crucial, Flipkart now offers integrated strategies to help brands connect with consumers at every stage. For instance, it recently collaborated with Samsung to promote their Galaxy AI phone. It developed a comprehensive 360-degree solution that spanned the entire app experience. Samsung was featured as a sponsor for its second-largest event in May, gaining visibility across the app, from the homepage to product pages to search. Additionally, it extended their reach beyond Flipkart by partnering with Meta and Criteo, leveraging its consumer insights to target audiences elsewhere. This holistic approach resulted in a threefold increase in search volumes during the campaign. HRX brand uses retail media, The apparel brand started with homepage placement to build awareness, moved to the category page to enter the audience’s consideration set, and finally to the product page for conversions. This strategy allowed it to correlate impressions with SKU-level sales, showing direct results from clicks. It also mirrored data cards to target potential customers. For instance, someone who previously bought the lowest level of Nike was likely to be its audience. This first-party data, provided by its platform partner Myntra, was crucial. Retail marketing now constitutes 60-70% of HRX’s budget because it delivers incremental revenue by targeting users who have already shown purchase intent. By focusing on sports buyers and leveraging first-party data, it achieved higher conversion rates and incremental revenue. Currently marketers allocate budgets for CTV from its digital spends. Marketers shouldn’t view CTV purely as a digital buy; it needs a mix of both digital and TV broadcast strategies. CTV encompasses various platforms, including OTT and Free Ad-Supported Streaming TV (FAST). FAST, for example, follows a format similar to broadcast channels.
LinkedIn Rolls Out Sponsored Newsletters
LinkedIn is expanding its sponsored articles ad option to sponsored newsletters as well, providing another way for brands to generate leads from their LinkedIn content. And with LinkedIn newsletters seeing significant growth in the app, it could be a valuable consideration to help get your branding in front of more people within your sector. LinkedIn launched sponsored articles back in January, which enables brands to both promote and gate their posted content in the app. Sponsored newsletters are essentially the same thing, with newsletters created by a company page also able to be boosted in order to attract more sign-ups.