OTAs have to stay agile amid breakneck pace of change
21/11/2024 by Yeoh Siew Hoon

Adrienne Enggist: “We’re constantly riding this edge of risk, protecting customers takes the number one priority”

With things “moving at such an enormously breakneck pace”, OTAs, big and small, have to stay agile, leveraging advances in processing power and AI to keep up with customer expectations and industry standards.

In sounding this message at WiT Singapore, Adrienne Enggist, Senior Director of Product, Customer Experience and Platforms for Booking.com, said that this means adopting a mindset of constant learning and adjustment, and understanding that today’s “unsolvable” problems might have solutions tomorrow as AI models and tools advance.

One of AI’s most transformative impacts on OTAs is in understanding and responding to customer intent. Enggist highlights that traditional approaches to product development no longer work when intent data – what customers want and how they search – is coming in fast and from multiple directions.

AI allows OTAs to sift through vast amounts of user data, understanding not only what travellers are looking for but also the emotions and desires behind those searches. This enables OTAs to provide more personalized and relevant experiences, increasing engagement and customer satisfaction.

In practical terms, this means AI can analyze user preferences and browsing history to recommend tailored travel options, reducing decision fatigue. For example, AI tools like ChatGPT can generate complex, multi-city itineraries in minutes, alleviating the “fear of missing out” that often plagues travel planning.

 

Balancing risk and innovation

In an industry where customer trust is paramount, OTAs must balance the excitement of AI-driven innovation with a commitment to customer protection.

Enggist explains, “We’re constantly riding this edge of risk, and protecting customers takes the number one priority.”

While AI can help OTAs roll out new features more quickly, the stakes are high in areas like travel bookings and customer service, where errors or misjudgments could lead to significant stress and dissatisfaction for customers. Enggist emphasizes a cautious, measured approach, prioritizing stability and reliability over speed.

 

Adrienne Enggist describes the goal of making searches feel more conversational, enabling users to type queries that reflect their unique needs and intentions, rather than using rigid keywords.

 

The Rise of the “Connected Trip”

The concept of a seamless, connected trip, where every aspect of a traveller’s journey is coordinated and optimized, is an emerging goal in the OTA industry. AI is central to making this vision a reality, from synchronizing flights and accommodations to offering real-time updates and adjustments.

However, as Enggist points out, implementing this kind of integrated experience is still challenging, requiring careful coordination across different platforms and systems.

OTAs see AI as the key to unlocking this “connected trip,” but they also recognize the hurdles, including data integration and the need for cross-company collaboration.

In regions like Asia Pacific, where mobile adoption and tech innovation are happening at a rapid pace, some OTAs are pushing forward more quickly, making strides in connected travel experiences that could set a new standard for the global market.

 

Search becomes more conversational

Natural Language Processing (NLP) is revolutionizing search functionality in travel tech, allowing OTAs to interpret search queries in a more intuitive, context-aware way. Enggist describes the goal of making searches feel more conversational, enabling users to type queries that reflect their unique needs and intentions – such as “family-friendly beach vacation in July” –rather than using rigid keywords.

By integrating NLP, OTAs can capture more nuanced customer intent, providing relevant recommendations that align with the user’s emotional and practical needs. This evolution in search functionality not only improves user experience but also fosters greater engagement, as customers feel understood and supported in their travel planning.

 

Addressing regional data regulations

One of the major challenges for global OTAs is navigating differing data regulations, particularly around privacy. Enggist points to the European Union as the “high watermark” for data protection, where strict regulations necessitate careful data handling and compliance measures. Adapting to these varying regional standards can slow down innovation, but it’s essential for maintaining customer trust and meeting legal requirements.

In regions with fewer data restrictions, such as parts of Asia, OTAs can move faster, leveraging data more freely to offer personalized experiences. However, the challenge for global players is to reconcile these different approaches, ensuring they meet the highest standards of privacy and security regardless of region.

 

Promoting diversity in tech teams

Enggist also highlights the importance of diverse perspectives in developing AI-driven travel solutions. With her team skewing 50% or more towards women, she believes that gender diversity enhances the quality of AI products by bringing a broader range of viewpoints to the table.

This commitment to diversity is critical in an industry that serves a global, multicultural customer base. By actively promoting gender and cultural diversity, OTAs can build products that are more inclusive, innovative, and empathetic to a wider array of customer needs.

 

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