March 19, 2025
Thady Ramos, Travel & Hospitality Lead at Valtech, shares his insights on how brands can leverage technology to offer more personalised and enjoyable travel experiences.
When we go on holiday, we talk with family, friends and colleagues about a “digital detox”. Leaving the phone by the bed to forget about the grind of the working week and distraction of social media. A Hilton survey reported that 24% of us turn off social channels to fully enjoy the experience of the destination, relax and disconnect. This is no longer the case, as technology now represents the biggest single opportunity for frictionless travel and the increased enjoyment of breaks abroad. Removing anxiety and providing ease so we can be present with our family, surroundings and most importantly ourselves.
This is becoming clearer in the travel options we choose. Whether buying a package holiday to manage costs — accounting for 62% of UK holidays according to ABTA — or choosing brands that offer convenience through excellent customer service, digital products and services. With the top two reasons for booking through a travel professional being ease of booking (54%) and help and support throughout the holiday (43%), as reported by ABTA this is where digital experience will differentiate successful travel and hospitality brands.
This is already impacting the travel and holiday booking experience today. AI is pushing what is possible, helping travelers create more personalised trips by connecting their needs with the options open to them. Booking.com and IHG AI Trip Planners are examples of live tools that are creating ease by helping travelers refine more personal experiences through greater consideration for the basic details of destination, dates and budget but also, more importantly, through the nuanced interests and style of the individual (according to Booking.com and SKIFT’s findings). AI Agents, such as Open AI Operator, are also revolutionising the planning experience and can create full holiday itineraries to the point of booking. With the rise of AI Agents travel and hospitality companies must ensure they are ‘AI optimised’ (according to Kelce Gene Papp in The Goods).
Technology is also influencing the destination experience. AI-powered concierge services, even at the luxury end of the market, help to support the traveller with information and options for their stay. This is a huge opportunity for hotels and resorts to create happier visitors while increasing spend (RevPAR), through interest in additional activities or purchases. This is something we have explored with Red Sea Global, creating an intelligent experience where guests can get more out of the destination. For instance, if you want to go hiking and have left your boots at home the AI assistant can help you get a new pair delivered to your hotel room.
Connecting the end-to-end experience is where the opportunity is. Travel and hospitality brands that can do this will be able to extend services, creating greater brand affinity, while generating a higher level of lifetime value (LTV) through loyalty. Brands such as IAG are already seeing the benefit of this, with IAG Loyalty now the third most profitable operating company in the group according to Skift. Industry business models are adapting with airlines offering holidays, and resorts and hotels extending their retail capabilities. To capture the attention of the traveller, Experience Innovation provides the opportunity to deliver ease throughout the customer journey. Putting the brand at the center of the holiday experience and owning more of the value chain.
So, forget about a “digital detox”, and embrace the concept of the “digital destination” providing travellers with more personalised experiences to stay ahead of the competition in today's travel landscape. To do this think about:
- Experience innovation: Identify where you want your future state traveller experience to be, putting it at the center of the business strategy to enable the opportunity for new, and potentially, more profitable revenue streams. Your brand should be at the heart of the travel experience, delivering ease and personalisation, giving rise to brand affinity and increased lifetime value.
- The end-to-end journey: To achieve your future state, break down silos in the traveller experience and your business, aligning the organisation with the products and services you offer. This will enable the experience to support the traveller, through new services and features that can be launched quickly. Providing a competitive edge.
- Technological enablement: Make technology decisions that are scalable and will support the traveller experience and operational efficiency. Leverage AI to deliver hyper-personalised support throughout the journey, from browsing, to travelling, and relaxing. This will help anticipate needs, recommend tailored activities, and solve problems before they arise.
The race to own the end-to-end experience has started, and to thrive in this evolving landscape, travel and hospitality companies must prioritise a holistic, technology-driven approach to the entire traveller journey. This will create those unforgettable moments and ensure loyal and happy travellers.
