1. What Is an AI Agent? Agent is a term in artificial intelligence, and Agent refers to a software or hardware entity that can operate autonomously. It is usually translated as: agent. However, the Chinese scientific community has tended to translate it as: intelligent agent (proposed by Cai Zixing in 2002).
Agent is an autonomous software system capable of perceiving the environment, making decisions, and taking actions. It is typically powered by artificial intelligence technology and can independently complete tasks.The working principle of an Agent can be summarized as the process of perception, decision-making, action, and self-optimization..
For example, an Agent can automatically break down tasks based on user goals and use various tools to complete them. It can be said that an intelligent agent = large model + planning + memory + tools. With the rapid iteration of large language model (LLM) performance, the agent market is also showing a rapid expansion trend. In 2023, the global agent market was valued at $3.86 billion.
Agents have the potential to transform many fields. In business and industry, Agents can improve productivity and safety, and even replace repetitive or technical jobs in some cases. In the software industry, the emergence of Agents will change the way software is developed and used, making software smarter and more personalized. Additionally, Agents can play important roles in various industries such as financial services, healthcare, and education. It is expected to grow at a compound annual growth rate of 45.1% from 2024 to 2030.
2. How to Use Agents in the North American Travel Agency Business?
In the North American travel agency business, Agent technology can play a role in various ways. Here are some specific application scenarios:
Customer Service and Consultation
• Intelligent customer service robots: Travel agencies can deploy intelligent customer service robots based on Agent technology to handle basic customer inquiries and common questions, such as travel itinerary recommendations, price inquiries, booking processes, etc. Agents can understand customer questions through natural language processing technology and provide accurate answers, thereby improving customer service efficiency and reducing the workload of human customer service.
• Personalized travel suggestions: Agents can provide personalized travel suggestions and customized travel plans based on customer travel preferences, historical data, and real-time information. For example, considering the customer’s interests, budget, and travel time, Agents can recommend suitable travel destinations, itinerary arrangements, and related activities.
• Agents build good relationships with customers by providing quality service. They pay attention to customer feedback and needs, continuously improving service quality to increase customer loyalty and satisfaction. Additionally, Agents may maintain long-term relationships with customers by regularly contacting them and providing personalized travel suggestions and discount information.I also believe it can be used in the automotive sales business.
Travel Product Recommendations and Sales
• Automated product recommendations: Agents can analyze customer browsing behavior, search history, and purchase records to automatically recommend travel products that meet their needs. For example, when a customer browses a page for a particular destination, the Agent can recommend related travel packages, hotel accommodations, and attraction tickets.
• Sales process optimization: During the sales process of travel products, Agents can assist in order processing, price calculation, contract generation, etc. By integrating with the travel agency’s order management system and inventory system, Agents can access product information and price changes in real-time, ensuring the accuracy and efficiency of the sales process.
• Booking and payment processing: Agents are responsible for handling customer booking requests, including flights, hotels, and car rentals. They use professional booking systems, such as GDS (Global Distribution System), to check the availability of flights and hotel rooms and complete the booking process. Additionally, Agents are responsible for handling customer payment matters to ensure smooth bookings.
Travel Itinerary Planning and Management
• Intelligent itinerary planning: Agents can automatically plan reasonable travel itineraries based on customer travel needs and preferences. For example, considering the distribution of attractions at the destination, transportation conditions, and the customer’s time schedule, Agents can provide optimal itinerary routes and activity arrangements.
• Itinerary change handling: During travel, if unexpected situations arise, such as flight delays or weather changes, Agents can promptly adjust the customer’s itinerary and provide corresponding solutions. For example, rebooking hotels, adjusting the order of attractions, or recommending alternative activities.
Data Analysis and Business Decision Support
• Customer data analysis: Agents can collect and analyze customer travel data, including basic customer information, consumption behavior, feedback, etc. By deeply mining this data, travel agencies can better understand customer needs and optimize products and services.
• Market trend forecasting: By combining industry data and external information, Agents can forecast trends in the travel market, providing support for travel agency business decisions. For example, predicting changes in popular travel destinations and market demand for travel products, helping travel agencies formulate corresponding marketing strategies.
Logistics and Operations Management
• Supply chain management: Agents can integrate with the travel agency’s supply chain system to monitor supplier inventory levels, price changes, and delivery times in real-time. When needed, Agents can automatically send purchase orders to suppliers, ensuring the timely supply of travel products.
• Internal process automation: In the internal operations of travel agencies, Agents can assist in completing repetitive tasks such as document organization, data entry, report generation, etc. By automating these processes, work efficiency can be improved and operational costs reduced.
Through the above methods, Agent technology can bring numerous benefits to North American travel agency businesses, such as improving customer satisfaction, optimizing product sales, enhancing operational efficiency, and increasing market competitiveness.
However, when applying Agent technology, travel agencies also need to pay attention to issues such as data privacy protection, user experience optimization, and technical maintenance to ensure effective application of the technology and smooth business operations..
3. Real Cases of Travel Agencies in the U.S. and Canada Using Agents?
1. Trip Intelligence Suite: This is a comprehensive set of tools based on AI developed for the travel industry, including over 30 functions aimed at simplifying travel planning and booking processes.
2. Trivago Hotel Search Platform: Trivago utilizes Google’s advanced text search capabilities, allowing users to search for hotels using natural language, providing a more intuitive and convenient search experience.
3. Mustard Exclusive APP: Mustard developed an exclusive APP using the Google Vertex AI platform, employing proprietary computer vision and AI technology to provide personalized guidance experiences for golfers and baseball pitchers.
4. Technogym Coach: Fitness equipment company Technogym launched the AI-driven virtual coach Technogym Coach, helping users create highly personalized fitness plans.
5. American Express Travel Agency: As one of the largest travel agencies in the U.S., American Express Travel Agency widely applies Agent technology in its operations. For example, through Agent technology, American Express can provide customers with personalized travel suggestions and itinerary planning. Agents recommend suitable travel destinations, itinerary arrangements, and related activities based on customers’ historical travel data, preferences, and real-time information.
6. Maple Leaf Travel Agency and the Cooperation with Professional Ground Agents. Maple Leaf Travel Agency mainly operates travel routes in Canada and North America. When selecting agents, they went through multiple rounds of assessments and comparisons, ultimately choosing an agent with many years of local ground experience. This agent is well-acquainted with the travel resources across Canada and has established long-term stable partnerships with numerous hotels and attractions. During a reception for a large tourist group from China, the ground agent meticulously arranged a route starting from Toronto, passing through Niagara Falls, Ottawa, Montreal, and finally arriving in Quebec City. In Niagara Falls, they booked a hotel that allowed tourists to closely view the falls and arranged an activity on the “Maid of the Mist” boat; in Ottawa, they arranged visits to political and cultural sites like Parliament Hill; in Montreal, they guided tourists through the old town and unique museums; in Quebec City, they let tourists experience the architectural and culinary charm of French style. Throughout the journey, the ground agent’s tour guide was professional and enthusiastic, providing excellent explanations and thoughtful service, leading to high tourist satisfaction and resulting in more orders from Chinese tourist groups for Maple Leaf Travel Agency, enhancing its visibility and competitiveness in the international tourism market.
7. Exploration Journey Travel Agency and the Partnership with Technical Agents. Exploration Journey Travel Agency is a Canadian travel agency that focuses on personalized travel services. In searching for agents, they prioritized a company whose core competitiveness lies in technological innovation. This agent has an advanced travel booking and itinerary planning system that can quickly generate personalized travel plans based on tourists’ needs and preferences. For example, a young couple wanted to spend their honeymoon in Canada, hoping for a trip that included both a romantic beach vacation and exciting outdoor activities while also experiencing local cultural features. After informing the agent of their needs, the agent swiftly devised a honeymoon travel plan starting from Vancouver, first enjoying leisurely beach time on Vancouver Island, then heading to Banff National Park for hiking and climbing activities, and finally experiencing cowboy culture in Calgary. During the booking process, the agent’s system in real-time checked and booked the best airfare, hotel, and car rental services, also providing recommendations for local specialty restaurants and hidden attractions. This collaboration allowed Exploration Journey Travel Agency to successfully meet customer personalized needs, enhancing customer loyalty and reputation, attracting more tourists seeking personalized travel experiences.
8. Aurora Travel Agency and the Cooperation with Multilingual Agents. Aurora Travel Agency specializes in travel projects in the Arctic region and often hosts tourists from around the world. When selecting agents, they specifically chose one with a multilingual service team. Once, the travel agency received a photography team from Germany who wanted to travel to Yellowknife to photograph the Northern Lights. The agent’s German-speaking customer service personnel had in-depth communication with the photography team to understand their shooting needs and schedule. Based on this information, the agent customized a dedicated Northern Lights photography tour for them, including accommodation and equipment rental at the best shooting locations and times, and contacted local professional Northern Lights guides to provide shooting guidance and assistance. Throughout the journey, the German-speaking guide accompanied them, resolving language communication and cultural differences, ensuring they could focus on their photography. This successful collaboration earned Aurora Travel Agency a good reputation among international photography enthusiasts, attracting more tourists from Europe to book Northern Lights tours.
9. Eddy Travels Company. Eddy Travels is a travel tech startup based in Toronto, Canada, founded in August 2018, which developed an AI assistant. Travelers can send text or voice messages to Eddy Travels and discover the best flights, hotels, car rentals, and other travel-related services in one place. By using Agents, the company can provide personalized travel suggestions, greatly simplifying the travel planning process.
A Canadian online travel agency’s cooperation case with FlairsTech.
The situation and problems faced by the travel agency: The online travel agency was established in 2012 and is a leading travel agency in Canada. However, during operations, they encountered issues such as declining customer satisfaction, low first-call resolution rates, high customer costs, and high customer abandonment rates.
FlairsTech’s solution:
Improving service level agreements: Analyzing historical data and current performance metrics to identify key areas for improvement, enhancing the speed of response and resolution of customer inquiries and issues.
Multilingual customer service team: Established a multilingual inbound and outbound customer service team capable of handling over four languages to meet the needs of tourists from different linguistic backgrounds, improving communication efficiency and customer satisfaction.
Technical support: Provided professional technical support to address travelers’ digital and technical needs and the operational issues of the travel agency, including technical support for online booking systems and troubleshooting website issues, ensuring a smooth booking process and accessibility across channels.
Introducing a sales and telemarketing team: Deployed a skilled sales and telemarketing team focused on converting inquiries into bookings, upselling travel packages, and promoting special promotions and offers to improve the travel agency’s sales and market coverage.
Quality assurance: Introduced comprehensive quality assurance services to ensure the travel agency adheres to the highest customer service standards. This team regularly monitors and evaluates customer interactions at all touchpoints, collects traveler feedback, and implements continuous improvement processes.
Results achieved: Customer satisfaction and net promoter scores significantly increased by 40% within just one year. The backend resolution rate reached 90%, and the overall first-call resolution rate improved to 90%. The cost per customer decreased by 30%, and the call abandonment rate dropped by at least 70%. Productivity increased by 50%, average handling time decreased by 50%, and overall operational costs were optimized.
4. Canadian Travel Agencies Should Consider the Following Aspects When Choosing Suitable Agents?
Prerequisite: Predicting whether there is a need based on business transformation.
1. Qualifications and Reputation
Industry certifications: Ensure that Agents have a legal business license and relevant travel operating permits, such as the requirement for all travel agencies operating in Ontario to be registered with TICO. Also, check if they have certifications from professional organizations like the International Air Transport Association (IATA) to ensure their professionalism in air ticketing.
Reputation evaluation: Use internet platforms, social media, travel forums, and other channels to understand other travel agencies or travelers’ evaluations and recommendations for the Agent. A good reputation usually reflects reliable service quality and credibility.
2. Professional Ability
Destination knowledge: Choose Agents who have in-depth knowledge of Canadian travel destinations, including attractions, culture, climate, transportation, etc. For example, if the travel agency focuses on Banff National Park travel routes, the Agent should be familiar with the best visiting times, attractions features, and surrounding accommodations and dining.
Product customization capability: Nowadays, travelers’ demand for personalized travel experiences is increasing. Agents should be able to provide customized travel products and services based on the travel agency’s requirements and customer interests, time, budget, etc., such as designing unique themed travel routes and arranging special activities or experiences.
Emergency handling capability: Ability to respond to emergencies, such as flight delays, hotel booking issues, or sudden illnesses of tourists. In emergencies, Agents should be able to quickly propose solutions to ensure the safety of tourists and the smooth progress of the itinerary.
3. Service Quality
Response speed: During the inquiry phase, Agents should be able to respond promptly to the travel agency’s inquiries and needs, providing accurate and detailed information. Quick responses help improve the travel agency’s work efficiency and customer satisfaction.
Language ability: Canada is a multicultural country, and tourists may come from all over the world. Agents should have multilingual service capabilities, including English, French, etc., to better communicate and provide services to tourists from different language backgrounds.
After-sales guarantee: Good after-sales service is crucial. Agents should be able to provide timely support to tourists during their travels, addressing various issues encountered, such as providing a 24-hour customer service hotline, assisting in handling complaints and disputes, etc.
4. Technical Capability
Booking system: The booking system used by Agents should be advanced, stable, and easy to operate, capable of real-time querying and booking flights, hotels, and travel activities, improving booking efficiency and accuracy while reducing manual operation errors.
Data analysis capability: Should possess a certain level of data analysis capability to provide valuable analysis reports and suggestions based on the travel agency’s business data and market trends, helping travel agencies optimize products and services and formulate marketing strategies.
5. Stability of Cooperation and Cost
Cooperation stability: Choose Agents with stable operations and good financial conditions to ensure long-term stability of cooperation. Avoid partnering with Agents who frequently change partners or have operational risks to prevent unnecessary troubles and losses to the travel agency’s business.
Cost-effectiveness: While ensuring service quality, compare the service fees and commission rates of different Agents to choose partners with high cost-performance ratios. At the same time, also consider the value-added services and potential revenue opportunities provided by Agents, comprehensively evaluating cost-effectiveness.
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