How Personalization Is Shaping The Travel Economy
MADRID, SPAIN - JANUARY 27: The chef of Simpar Restaurant, Axel Smith, wins the XI Championship for ... More the Best Iberian Ham Croquette at Madrid Fusión 2025 at Ifema on January 27, 2025 in Madrid, Spain. 'Madrid Fusion Foods of Spain' celebrates its 23rd edition since it was first held in 2003. (Photo by)
The pandemic didn't just disrupt travel—it reprogrammed it. Travel and live events were the currency consumers most wanted and the absence of opportunities created more than just pent up demand. Gen Zers created bucket lists.
The longing that hasn't subsided even though we are years removed from the initial pandemic disruption.
Consumers today aren't chasing destinations. They're chasing experiences with meaning. According to Jeff Zotara, CMO at Arrivia, we've entered the age of the purposeful traveler, and loyalty programs must evolve—or risk becoming obsolete.
AI has a big role to play in the travel booking shift. 'AI and machine learning are now the engines behind meaningful loyalty,' says Zotara. 'It's not just about booking the next cruise—it's about booking the right cruise with the right excursion, cabin, and cuisine.'
'Today's travelers aren't just chasing deals – they're chasing experiences that reflect who they are,' says Lesley Klein, SVP of Strategy and Brand Marketing at Priceline. 'That's where AI can really deliver. We recently launched Neighborhood Navigator, a new tool that helps travelers find their perfect neighborhood in a new city by cross-matching with neighborhoods they like elsewhere. Combined with additional features like our new Trip Vibe Selector and AI-powered Penny Maps, we're helping customers personalize their trips to align with their interests and passions.'
Arrivia's personalization engines have shown 10–12x higher conversion rates when customized travel offers are delivered based on past travel behavior, booking history, and even dining preferences. Think Amazon Prime, but for travel—with every touchpoint curated based on data. When strategy meets technology and the consumers preferences are clearly considered the opportunity to drive increase demand is significant.
A person has a conversation with a Humanoid Robot from AI Life, on display at the Consumer ... More Electronics Show (CES) in Las Vegas, Nevada on January 10, 2024. (Photo by Frederic J. BROWN / AFP) (Photo by FREDERIC J. BROWN/AFP via Getty Images)
Zotara sees the experience economy being driven by two major forces:
Interestingly, household composition (child vs. no child) was a bigger predictor of immersive travel behavior than age alone when I published my research on youth culture trends.
We also discussed the double-edged sword of loyalty benefits. Take American Express: once famed for its 'buy one, get one' first-class offer, it eventually sunsetted the perk. 'If you take something away, you better replace it with something remarkable,' said Zotara. 'Consumers notice—and they're not shy.'
In its place? A web of monthly benefits—Uber credits, streaming services, Grubhub perks. The logic? Provide continuous value that keeps cardholders engaged every month, not just on their annual vacation.
Zotara outlined what separates great programs from forgettable ones:
As Zotara summarized: 'The best loyalty programs are the ones you live with—not just ones you use when you fly.'
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