Travel planning is becoming increasingly fragmented, with consumers now interacting with 65 digital touchpoints per trip. For Indian online travel agencies like MakeMyTrip and EaseMyTrip, this trend necessitates heavy investment in AI to maintain data continuity and customer loyalty. Investors should monitor how these technology upgrades affect long-term profit margins and user retention rates.
Modern travel planning has evolved far beyond simple booking workflows. According to a study by Skift Research and McKinsey & Company, the number of digital touchpoints a traveler interacts with during the planning process has surged to 65 in 2026, up from 45 in 2018. This shift marks a more fragmented digital journey where consumers switch between social media, search engines, AI assistants, and travel platforms, often losing context or data at the seams between these tools.
For online travel agencies (OTAs), this creates a significant challenge in user retention. When a customer moves from an AI search tool to a booking site and loses their search history, they face friction that can drive them toward competitors. To counter this, companies are prioritizing data continuity, aiming to create a seamless experience that keeps the user engaged regardless of the platform they start with. Failure to maintain this flow could result in lower conversion rates as customers abandon the booking process entirely.
AI is also fundamentally changing the early discovery phase of travel. Many consumers are beginning to rely on AI assistants that offer curated selections rather than broad, traditional search results. This places competitive pressure on travel brands, as those without a strong presence in these AI-driven lists risk being ignored by potential customers early on. Indian market players such as MakeMyTrip are already integrating AI-driven tools, such as voice search and personalized itinerary suggestions, to maintain their visibility in this changing market.
Investors should pay close attention to the financial implications of these technology investments. While implementing advanced AI can reduce friction and improve customer experience, it also requires significant capital spending on software development and data infrastructure. Companies must balance these costs against their profit margins, as high tech-spending can weigh on the bottom line in the short term. Furthermore, maintaining engagement after a booking is finalized represents a critical opportunity, as many travelers continue to search for better deals even after an initial payment. Firms that successfully manage these interactions are likely to see better loyalty and lower customer acquisition costs.
Looking ahead, the primary monitorable for investors will be how these technological investments translate into measurable improvements in user retention and conversion. The market will likely observe whether these AI capabilities allow companies to effectively capture customers during the discovery phase and keep them throughout the entire planning lifecycle. A company’s ability to solve the problem of data loss across devices will likely serve as a key differentiator in the competitive Indian online travel sector.