This article first appeared in Digital Edge, The Edge Malaysia Weekly on August 28, 2023 - September 3, 2023

Be it click and buy, or tap and pay, there is no question about technology’s omnipresence and integration in our lives today. Even travel, an industry notoriously resistant to change, has been forced to accelerate digitalisation as people began to embrace the online sphere more.

Adaptability in a crisis pushed businesses to employ digital solutions. But travel technology continues to evolve at breakneck speed, with changing consumer preferences and global developments driving innovation.

According to the e-Conomy SEA Report 2022 by Google, Temasek, and Bain & Co, Southeast Asia is home to 460 million internet users — more than two-thirds of its population. Tech-savvy travellers in the region are now comfortable with, and even open to, revolutionary ways of travel. For instance, 86% of Singaporean travellers are keen on hotels that use artificial intelligence (AI) to personalise their services and offerings.

Such demands for meaningful, curated itineraries make it crucial for travel platforms to provide a smorgasbord of options curated by AI. Many operators are also launching one-stop apps with end-to-end capabilities — from booking a trip until the ride back home.

The core of this seismic shift is people. The pandemic gave them the unwanted experience of a lifetime, and they are now wresting back control by rewarding themselves with the adventure of a lifetime. As technology and convenience become increasingly inseparable, travel platforms must take bold steps to combine the best of both worlds and serve the new age of travel.

Generative AI, such as OpenAI’s ChatGPT, has been the talk of the town over the past year. From writing essays to producing stunning images, many are using the software to generate content from written prompts. Travel planning is its next big remit.

At least 32% of travellers in the US are likely to use ChatGPT to plan their trips. Southeast Asia has the potential to garner a greater number of users. A recent joint study by Yahoo! and research firm Milieu Insight of 1,000 Malaysians found that 65% of the respondents wanted to explore as much as they could on holidays.

Investing in AI must, then, be a matter of when, not if, for travel platforms. Beyond chatbots, hyperpersonalised and immersive experiences will rapidly become the benchmark for businesses in the industry. The opportunity to score massive points with customers looking to craft a tailored itinerary in seconds cannot be overlooked. With generative AI, the oft-used adage “content is king” has transitioned to “content generation is king”.

And in an industry in which customer satisfaction is non-negotiable, travel platforms can also leverage AI by improving the visibility of small and medium enterprises. As SMEs form the backbone of Southeast Asia’s economy, a boosted reach fine-tuned by AI could also lead to improved business performance and precise marketing — extremely critical as travel recovers further.

Another benefit of AI sometimes overlooked by organisations is enhancing workplace productivity. Freeing up time for employees allows them to work on more pertinent tasks, contributing to what matters the most to consumers: convenience.

Convenience is a top priority among many travellers. This spans the entire journey from flight bookings to buying insurance and upon touchdown. The increased demand for convenience has supported the rising popularity of all-in-one platforms.

Consumers seek a single app to serve their needs at their fingertips. They also expect instant access to information, making it a key consideration for those looking for holistic experiences. Travel planning has become efficient but has not taken a back seat.

In fact, 38% of travellers in Southeast Asia favour online travel agencies that offer travel protection during bookings. Switching between various apps is tedious, and people are optimising their time better, especially during this uptick in travel.

Traveloka data shows that outbound flights from Malaysia more than doubled between January and May this year, compared with the same period in 2022. With more Malaysians itching to travel once more, they are eager to plan less and explore more.

Government agencies are also reshaping their approach. Last December, Kuching’s tourism sector launched the Sarawak Travel Portal and App to help promote tourist attractions and tourism products across the state. To that end, travel platforms can be beacons for public and private sector partners by charting new frontiers.

Incorporating generative AI requires significant financial outlay, though. It is no secret that training and maintaining AI models can take a toll, especially on SMEs and micro SMEs with limited liquidity, as it costs more than US$4 million (RM13.7 million) to train a large language model such as GPT-3.

Companies that take the plunge must also spend to reskill their workforce. While this may reap benefits in the long run, not all businesses have ample cash on hand. They must find that balance between chasing the future and surviving the present.

But as much as we are enthusiastic about technology, the beating heart of travel will always be people. The way forward is to prioritise personalisation while continuing to innovate in the industry. With that focal point, travel platforms can play a vital part in making lasting memories.

Caesar Indra is president of Traveloka, an online travel company that provides a wide range of travel needs on a single platform

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