Flight Centre makes first swoop into AI with tech that can read customers’ emotions

Flight Centre makes first swoop into AI with tech that can read customers’ emotions
Edited by Travel Weekly


    Flight Centre is using AI to improve its customer experience and increase sales in young people – who are more likely to shop online.

    News highlights

    • AI has already been used to identify a number of customer pain points such as customers not being able to manage bookings
    • Flight Centre is introducing a feature on the app that allows customers to claim refunds from certain airlines within 72 hours
    • So far the AI is only being used on the main Flight Centre brand and not for subsidiaries such as Aunt Betty and BYOjet

    The travel giant has partnered with software-provider Qualtrics on a partnership that uses AI to understand customer sentiment about the brand.

    Deviating from traditional feedback routes, the AI allows Flight Centre to collect unstructured data as well as structured data.

    Whilst structured data uses traditional feedback such as surveys and satisfaction measures, unstructured feedback uses data collected from emails, chat, messaging, social and online reviews to understand the customer’s emotion and intent. As well as the message itself, conversational analytics will be used to understand a customer’s emotion through things like their sentence structure or frequency of message.

    Since the beginning of this year, Flight Centre has analysed millions of sentences of unstructured feedback shared by customers with Qualtrics AI.

    Andrew Stark.

    Currently the AI is only being used for the main Flight Centre travel brand and not on Flight Centre’s other brands such as Aunt Betty.

    Speaking to The Australian, Flight Centre’s global managing director Andrew Stark said the technology is not being used to solve individual problems, but is a tool to understand market perception.

    “We’ve got a customer care team so we’re not seeing this as a silver bullet to give us an overall sentiment or solve individual problems, but it will give us the average sentiment of the market,” he said.

    Bulk of sales are still in-store

    The bulk of Flight Centre’s trips – 75 per cent – are still booked in-store and the financial value of an in-store trip is still significantly more than an online buy.

    On average, in-store customers spent about $5500 on a trip whilst online customers only spent $1000.

    This could be attributed to the average age of the customer – in-store a lot of customers are in their 60s (and potentially retired) whilst online customers have an average age of 42.

    “There’s probably a moment in time between your 40s and your 70s where you have disposable income, you probably have the means to book larger top holidays and you spend more time travelling,” Stark told The Australian.

    A way to find customer pain points 

    Stark also said that AI had been used to identify a number of customer pain points including not being able to manage bookings.

    “Work is in play right now to have that rolled up within the next six to 12 months where there will be a function in our app,” Stark said.

    Flight Centre is also adding a feature in its app which allows customers to cancel their flights for some airlines within 72 hours.

    Not the only travel provider moving into AI 

    Flight Centre is not the only one using AI to boost sales. According to iTnews Intrepid has seen a substantial increase in bookings after employing AI, first-party data analytics and real-time behavioural analytics.

    Chief customer officer Leigh Barnes told iTnews that introducing “behavioural email journeys” during 2023 made a material difference to the company’s profits.

    A “behavioural email journey” is a targeted approach to customer engagement that send personalised emails based on someone’s actions, preferences and behaviours.

    Intrepid women’s tour in Nepal.

     

     

     

    Latest News

    • Hotels

    Chief executive officer Dave Baswal to depart Ovolo Hotels  

    Ovolo hotels have announced the  departure of chief executive officer Dave Baswal from his role, effective from the end of September. Baswal first joined the company in 2016, initially as director of finance & operations Australia, progressing through roles including COO and CFO, managing director, and ultimately assuming the CEO position in 2022.   During his […]

    • Hotels
    • Technology

    Amadeus introduces AI technology to modernise hotel business

    Travel technology provider Amadeus has partnered with Microsoft to bring the power or AI to simplify hoteliers’ ability to search and understand business intelligence. Amadeus plans to incorporate Gen AI into an innovative new chatbot for its business intelligence suite, debuting with Agency360+.  The chatbot is powered by the Azure OpenAI Service and builds on […]

    • Attractions

    SA’s almost-complete Monarto Safari Park on the market for $50m

    The nearly finished luxury hotel and glamping resort inside Monarto Safari Park in South Australia has been put up for sale Jayco caravan founder Gerry Ryan with an asking price of $50 million-plus. The Australian Financial Review reports Ryan acquired the 65.66ha site, in the Murraylands region 70km from Adelaide, from Zoos South Australia in […]

    • Aviation

    Avis and South African Airways announce partnership after relaunch of flights to Perth

    Car rental company Avis has announced a partnership with South African Airways (SAA) following the relaunch of its Perth to Johannesburg route after a four-year hiatus. “Avis is proud to partner with SAA to provide an integrated travel experience that ensures our customers receive the highest standard of service both in the air, and on […]

    • Hotels

    Novotel and ibis Styles Melbourne Airport officially open

    Novotel and ibis Styles Melbourne Airport were officially opened today, the largest hotel opening in Australia for 2024 so far. Melbourne Airport CEO Lorie Argus, Accor Pacific COO Adrian Williams and Visit Victoria CEO Brendan McClements were joined by more than 120 people, including key industry stakeholders, for the official ribbon cutting and launch of […]

    • Cruise

    Crystal signs memorandum of agreement with Fincantieri

    Luxury cruise experience leader, Crystal, has signed a Memorandum of Agreement with Fincantieri to construct two new, groundbreaking ships. The planned 690-passenger (based on double occupancy), 61,800-gross tonne ship will feature a host of amenities and innovative designs that ensure unparalleled comfort and indulgence for guests. Ship designs will be led by architectural firms, Studio […]

    • Aviation

    Gold Coast Airport marks major milestone in domestic expansion

    Gold Coast Airport undergoes a $17 million refurbishment of its old international area to expand domestic capabilities following the shift of international services to a new terminal. The airport’s new domestic lounge has just opened, marking a milestone in the terminal’s ongoing transformation. With various refurbishments coming in the following weeks, including new flooring, improved […]

    • Exhibitions

    Tahiti Tourisme gets behind Gauguin’s World exhibit at National Gallery, Canberra

    Tahiti Tourisme is supporting the Gauguin’s World: Tōna Iho, Tōna Ao exhibition which was launched at the National Gallery of Australia in Canberra yesterday, 27 June, attended by the Vice President of Tahiti, Eliane Tevahitua, and Prime Minister Anthony Albanese attending the festivities. The exhibition, open to the public from tomorrow, 29 June to 7 […]

    • Cruise

    All you need to know about White Bay Cruise Terminal

    Here is everything you need to know about White Bay Cruise Terminal, one of two dedicated cruise passenger terminals in Sydney Harbour. Entering the cruise terminal The terminal is located at James Craig Rd, Rozelle, with easy road access via The Crescent / James Craig Road. Pedestrians and cyclists are allowed to enter the terminal […]