The Price of Choice | Mental Overload is Costing the Travel and Hospitality Industry

In the bustling heart of a luxury hotel’s contact center, Jane, a seasoned customer service agent, juggles multiple systems, different types of phone calls, while also calming a frustrated guest calling from the front desk of the hotel looking for help. Just a few steps away, her colleague Marcus rapidly types responses to a flood of social media inquiries, his eyes darting between screens.  

This scene is not unique; it plays out daily in countless contact centers, hotels, and tourism hubs around the world. The relentless pace and high demands are pushing these frontline warriors to their limits.  

Amid this whirlwind, the human cost is staggering. Agents like Jane and Marcus face mounting burnout, leading to high attrition rates that bleed the industry of its most valuable resource—experienced personnel. Each new agent hire is estimated to cost contact centers between $10,000 to $20,000 in training, direct recruiting costs, and lost productivity during ramp up.¹ The repercussions are significant: Operational efficiency is compromised, service quality suffers, customer satisfaction plummets, and sales fall.  

In this critical state, effective Customer Experience Management (CXM) is no longer a luxury—it’s a necessity for survival. 

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Research found that at one company with 5,000 customer service agents, using Generative AI (GenAI):

Advantages of Gen AI in T+H

Simplifying Decisions with GenAI

Despite technology and operational investments, the travel and hospitality industry still struggles with siloed channels, inefficient processes, and data quality issues, leading to cognitive fatigue for customer service agents. 

Equipping agents with Generative AI-enabled (GenAI) tools such as Next Best Offer (NBO) and Next Best Action (NBA) can provide crucial support and assistance in serving customers. These tools leverage data and predictive analytics to anticipate and personalize offers and solutions for customers based on behavior, preferences, and past interactions.  

Simplifying Decisions with GenAI

How NBA and NBO Works:

How NBA and NBO Works

Enhancing Value by Enabling a Modern CXM

Using GenAI-enabled CXM tools to simplify decision making not only reduces the strain on your customer service team, but also leads to lower operating costs and increased revenue. In fact, at one company with 5,000 customer service agents, adopting GenAI-enabled tools increased issue resolution rate by 14% per hour and reduced the time spent handling an issue by 9%.³

Implementing effective CXM transforms not just the operational landscape but also the daily lives of employees like Jane and Marcus. Freed from the constant pressure of manual processes, they could focus more on what they do best—delivering exceptional, personalized service to every customer and guest.

This shift not only enhances their job satisfaction and reduces burnout but also elevates the overall guest experience, turning routine interactions into memorable moments that distinguish your brand in a competitive market. With CXM, we’re not just saving hours; we're improving the price of choice. 

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RCG has extensive experience in guiding clients to leverage GenAI-powered interventions to drive CXM process transformation. With a focus on prioritizing strategic use cases for maximum impact, we offer end-to-end support from roadmap to execution. Partner with us to unleash the full potential of GenAI and harness our industry expertise in enhancing your customer experience.  

Works Cited