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AI agents help turn idle travel time into revenue opportunities

The travel industry is increasingly leveraging artificial intelligence-powered agents to enhance customer engagement before, during, and after trips, fundamentally transforming how companies interact with their clients throughout the travel process.

AI’s Growing Influence on Customer Loyalty

A recent Skift Research study illustrates that the current landscape of travel research involves numerous digital channels, including search engines, social networks, and emerging AI solutions. In a survey of nearly 7,000 travelers, more than 60% of respondents familiar with AI now use it for travel planning. Even with many sources influencing discovery, actual travel bookings remain clustered around platforms that deliver value in terms of price, reliability, and flexible payment options.

As touchpoints proliferate along the traveler’s journey—from initial inspiration all the way to months after returning home—airlines face the challenge of providing seamless experiences amid potential fragmentation. AI agents offer solutions not just for FAQs and booking modifications, but also for maintaining continuity throughout the entire travel lifecycle, aiming to reinforce loyalty by maintaining context across interactions.

To achieve this, it’s critical for airline executives to align traditionally siloed departments—including digital teams, loyalty management, customer care, and operational functions. With AI agents handling tasks such as disruption responses, upgrades, rebookings, and loyalty inquiries, having a unified strategy for managing customer data becomes essential. Without it, airlines risk developing fragmented systems that are difficult to connect.

Advanced Engagement with Evolving AI Agents

According to Erik Zahnlecker, agent product manager at Sierra, long-running AI agents are explicitly engineered to stay involved with both the customer and their needs over extended periods, sometimes spanning weeks or months. This ability to maintain ongoing context enables AI agents to link planning, booking, service, and loyalty into one streamlined interaction, as opposed to numerous disconnected exchanges. Zahnlecker points out that an agent with memory can resume conversations over chat, email, SMS, or voice, making it effortless for travelers to switch communication channels without redundancy.

Given that many customers plan and book travel well in advance, AI systems capable of recalling user preferences and backstory can anticipate traveler needs, follow up proactively, and support goal completion—minimizing friction for both travelers and staff.

Transforming Disruptions into Positive Experiences

AI excels when dealing with travel disruptions, such as flight cancellations. Typically, travelers facing such issues scramble for assistance. As Zahnlecker details, AI agents that monitor for disruption signals in real time can proactively engage affected passengers before customer service lines are overwhelmed, accommodating individualized needs including alternative bookings or refunds, all while aligning with airline policies. This ensures a smooth, consistent recovery experience that retains context from the point of disruption through claims and future reservations.

Driving Revenue Beyond the Traditional Booking

Most airlines lose sustained contact with their customers after a journey, often limiting post-trip communication to impersonal email campaigns. This results in missed opportunities for nurturing loyalty or upselling. Sierra’s Horizon agents, for instance, can initiate contact in more tailored ways, responding to triggers like lower fares, trip anniversaries, or relevant events. Insights from Skift Research highlight that 52% of travelers appreciate personalized messages with trip suggestions within 30 days after their return.

By using the periods between trips to further engage travelers, airlines can tap into latent demand, generate direct bookings, and grow ancillary sales more effectively.

Personalization as the Key to Ancillary Sales Growth

From the moment a reservation is made until the departure date, AI agents can suggest targeted offers—like seat upgrades, additional luggage, or inflight connectivity—tailored to individual history and behaviors. Recognizing which customers respond favorably enables airlines to achieve greater conversions and maximize revenue, all while minimizing irrelevant marketing pressure.

Similar advancements are evident outside aviation. One travel company using a Sierra agent observed a 5% increase in plan retention and a 4.7 customer satisfaction rating, underscoring how customized, context-rich engagements boost both loyalty and business success.

Achieving True Personalization

Effective, persistent engagement depends on delivering relevant, timely value. For AI agents to truly assist, they must rely on integrated data from customer management systems and recall key traveler preferences to avoid becoming sources of unwanted outreach. As Zahnlecker states, maintaining a context-driven, ongoing dialogue enhances customer profiles and allows agents to act at pivotal moments, such as notifying travelers when previously requested seats become available.

Across the Broader Travel Ecosystem

This trend extends far beyond airlines. Hotels, cruise companies, and OTAs are all implementing AI agents for reservations, loyalty programs, refunds, and pre-arrival communications. Success depends on the AI agent’s ability to retain and transfer context across every interaction, improving experiences and extending customer lifetime value.

Zahnlecker advises that companies should roll out AI agents gradually, starting with well-defined, high-traffic applications before expanding their roles. This phased method enables rapid learning, builds customer trust, and clarifies organizational objectives for agent deployment.

Ultimately, embracing persistent, intelligent AI for customer interaction represents a significant advantage. Businesses investing early in the technology and cohesive internal integration will be best positioned to gain new revenue streams and foster lasting customer loyalty as the travel sector evolves.

Further details on how Sierra supports travel and hospitality companies can be found at Sierra’s solution page.