AI-Driven Hotel
Recommendation

role

Product Design Intern

Project Lead

timeline

July-Sept 2023

impact

Inc. engagement rate

Boost CTR & CVR

stakeholders

Business Intelligence

Design Managers

PM

Key Summary

We are aiming to leverage AI and delivering tailored recommendations to users based on their clusterings / segmentation to reduce drop-offs and boost conversion.

Results Highlight

The project in numbers

2

2

2

Interview with major stakeholders

3

3

3

Segmented Users Type

3

3

3

Tailored User Interfaces for each segment

Visual Glimpse

The Visual Output of This Project

Problem

Enhancing user experience goes beyond design; it demands strategic collaboration and leveraging advanced technology.

Nowadays, Artificial Inteligence is very accessible for most of people. Our company's strength lies in our dedicated Business Intelligence team harnessing AI and machine learning for insightful data analytics, refining decision-making in business processes.

But our design is not fully integrated with our BI team, so we need to step-up the collaboration game to improve our performance.

Search Result Page

Select Room

User Drop Off

On other note, there's a drop-off on our funnel (exact number is confidential), so we need to retain our funnel, and we were challenged to improve it using AI / Machine Learning.

Goals / Objective

The project in numbers

1

1

1

Make the design team aware about the use of ML/AI in the development of a feature.

2

2

2

Utilize existing ML/AI engine to enhance user experience.

Insights - Understand AI / ML it Self

Ingredients that will form the solution

What is AI ?

Artificial Intelligence is a computer system that is capable of performing tasks that typically require human intelligence.

Machine Learning (ML) is a type of computer science where computers learn to do difficult tasks without being explicitly told how to do each step. Instead, they rely on patterns and making guesses based on the information they have. Computers use ML algorithms to look at lots of past data and find patterns in it.

Artificial
Intelligence

Machine Learning

Artificial
Intelligence

Machine Learning

Artificial
Intelligence

Machine Learning

Even though machine learning is a part of Artificial Intelligence (AI), not everything AI does involves machine learning.

What's the Opportunity of AI in Tourism?

Users are constantly looking for relevant personalized contents.

AI in tourism offers a significant opportunity by meeting the increasing demand for personalized content. Using AI algorithms, businesses analyze user data to provide tailored travel recommendations, improving user satisfaction and engagement.

This technology streamlines travel planning and fosters deeper connections by offering relevant, customized content aligned with user preferences.

Understanding Data Science Team in Tiket.com

How is the team workflow cycle look-like

How do they work

AI in tourism offers a significant opportunity by meeting the increasing demand for personalized content. Using AI algorithms, businesses analyze user data to provide tailored travel recommendations, improving user satisfaction and engagement.

This technology streamlines travel planning and fosters deeper connections by offering relevant, customized content aligned with user preferences.

Problem

Definition

Problem

Definition

[DS/MLE]

Data

Acquisition

Data

Acquisition

[DS/MLE]

Data

Analysis

Data

Analysis

[DS]

Modelling

Modelling

[DS]

Result Communication

to Stakeholders

Result Communication

to Stakeholders

[DS]

Deploy

Deploy

[MLE]

DS = Data Science | MLE = Machine Learning Engineer

Source: Data Science Lead at Tiket

Where Do Designer Stand?

Now, collaboration is the key and a pivotal aspect of a company. Designers play a crucial role in the data science workflow, merging complex data insights with user-friendly experiences.

We collaborate using our design skills to convert intricate data into visually engaging representations.

As you can see under the figure below, designer stand in the early process of the understanding in the problem definition together with Data Science team.

Problem

Definition

[DS/MLE]

Understand

[Designers]

Data

Acquisition

[DS/MLE]

Data

Analysis

[DS]

Modelling

[DS]

Result Communication

to Stakeholders

[DS]

Deploy

[MLE]

Source: Data Science Lead at Tiket

Data Science Engines at Tiket

Recommendation

Neo Polaris (Cross Vertical)

Carina (Payment Method)

Circinus (Smart Global Search)

Sagitta (Flight Autocomplete)

Dorado (Hotel Autocomplete)

Lepus (Nearby Hotel SRP Ranking)

Volans (NHA SRP Ranking)

Fornax (Ranking Engine)

Segmentation

Puppis (Hotel Segmentation)

Cygnus (Customer Segmentation)

Detection

Lacerta (Hotel Room Inventory Improvement)

Aurora (Image Scoring System)

Natural Language Processing

Pavo (Review Beautifier)

Apus (NLP Engine)

Corvus (Automated Email Parser)

Pricing

Orion (Dynamic Pricing)

Prediction

Serpens (Paid Hotel)

Segmentation

Puppis (Hotel Segmentation)

Cygnus (Customer Segmentation)

Why Cygnus ?

Cygnus focuses on user segmentation, aimed at categorizing users from multiple angles such as click behavior, transactions, and geolocation on the hotel booking process.

This segmentation offers valuable insights into user behavior, aiding the development of recommendation systems and dynamic pricing models.

To ensure accuracy and relevance, the user segmentation models are run monthly, updating user clusters accordingly.

Cygnus Hotel Customer Segmentation

Cluster 0

Limited Transaction Frequency

Budget-Conscious

Indifferent to Promotions

Indifferent to Credit Cards

Preference for Standard Hotels

Use of Budget Hotel Filters

Limited Transaction Frequency

Budget-Conscious

Indifferent to Promotions

Indifferent to Credit Cards

Preference for Standard Hotels

Use of Budget Hotel Filters

Cluster 1

Frequent Transactions

Budget-Conscious

Promotion-Aware

Indifferent to Credit Cards

Preference for Standard Hotels

Use of Luxury Hotel Filters

Frequent Transactions

Budget-Conscious

Promotion-Aware

Indifferent to Credit Cards

Preference for Standard Hotels

Use of Luxury Hotel Filters

Cluster 2

High Spending

Promo hunter

Moderate Credit Card usage

Preference for luxury hotels

High Spending

Promo hunter

Moderate Credit Card usage

Preference for luxury hotels

So, How Might We Improve User Experience by Utilizing Customer Segmentation Engine ?

Understanding Pain Points

The largest drop-off step: Select Room in Room Listing Page.

Search Result Page

Select Room

User Drop Off

Source: Amplitude of Tiket.com

The reason behind this are relevance issue, uncertainty issue, and benefit issue for new users.

Search Result Page

Select Room

60.2%

Back to SRP

Source: Amplitude of Tiket.com

The reason of this phenomenon is due to "Decision Paralysis"

The Decision Paralysis

Decision Paralysis is the lack of ability to decide out of fear of making the wrong choice, and 60.2% of customers are experiencing this.

This happens due to the overwhelming travel booking process caused by the abundance of choices (Choice Overload).

How we handle current situation

We currently use "Fornax", a ranking engine. Currently it offers users random suggestions. This random recommendation gives user little to no control over the product they’re seeing.

The ranking engine are very broad & wide, calculating all of the user's behaviour. Leading to a randomized recommendations.

The way to improve it

To improve the current experience, we will use 2 methods, the 1st is to leverage the data provided by our Data Science Segmentation Engine.

Then onto the 2nd step, we'll extract the data and translate them into visuals with appealing content based on their segmentations.

Leverage Data

Cygnus provides insights into 3 main user segmentation groups. We analyze each group’s behavior and translate them to contents and visuals.

Visual + Content

Give users relevant content based on their segmentation group, then alter the UI visual appearance for each group to provide a more personalized experience and attract users from specific segment.

Leverage Data:

  1. Chunking

The ranking engine are very broad & wide, calculating all of the user's behaviour. Leading to a randomized recommendations.

We do this by labelling & grouping our recommendations in SRP.

Illustration of Chunking

  1. Tailoring

Each customer segmentation group has different behavior.

To cater this different preferences, we tailor our UI visual appearance to match their behavior

Cluster 0

There will be 3 types of recommendations for cluster 0: Best Deal, Best Hotel Under 500k, and Most Affordable, Here's the breakdown.

Spending Behavior:

350k - 550k
Decent Ratings

Spending Behavior:

350k - 550k
Decent Ratings

Spending Behavior:

350k - 550k
Decent Ratings

Best Deal

Best Deal

Best Deal

Hotel Filterer

Budget - Under 424k

Hotel Filterer

Budget - Under 424k

Hotel Filterer

Budget - Under 424k

Best Hotel Under 500k

Best Hotel Under 500k

Best Hotel Under 500k

Type of Hotel Booked

Standard Hotel with 2.97 Rating & Low Price

Type of Hotel Booked

Standard Hotel with 2.97 Rating & Low Price

Type of Hotel Booked

Standard Hotel with 2.97 Rating & Low Price

Most Affordable

Most Affordable

Most Affordable

Cluster 1

There will be 3 types of recommendations for cluster 1:

Hidden Gem, Best Deal, and Best Hotel Under 600k

Spending Behavior:

400k - 550k, Good Promo
Decent Ratings, Luxury Hotel Filterer

Spending Behavior:

400k - 550k, Good Promo
Decent Ratings, Luxury Hotel Filterer

Spending Behavior:

400k - 550k, Good Promo
Decent Ratings, Luxury Hotel Filterer

Hidden Gem

Hidden Gem

Hidden Gem

Hotel Filterer

Moderate Promo Hunter (Avg. Value 25k)

Hotel Filterer

Moderate Promo Hunter (Avg. Value 25k)

Hotel Filterer

Moderate Promo Hunter (Avg. Value 25k)

Best Deal

Best Deal

Best Deal

Type of Hotel Booked

Standard Hotel with 3.08 Rating & Low Price, 400k - 550k

Type of Hotel Booked

Standard Hotel with 3.08 Rating & Low Price, 400k - 550k

Type of Hotel Booked

Standard Hotel with 3.08 Rating & Low Price, 400k - 550k

Best Hotel Under 600k

Best Hotel Under 600k

Best Hotel Under 600k

Cluster2

There will be 3 types of recommendations for cluster 2:

Luxurious Premium Hotel, Promo with CC, and Affordable Luxury.

Type of Hotel Booked

Luxury Hotel with 3.59 Rating

Type of Hotel Booked

Luxury Hotel with 3.59 Rating

Type of Hotel Booked

Luxury Hotel with 3.59 Rating

Luxurious Premium Hotel

Luxurious Premium Hotel

Luxurious Premium Hotel

Promo/Type of Payment

Avg Promo Value of 110k, Moderate CC use

Promo/Type of Payment

Avg Promo Value of 110k, Moderate CC use

Promo/Type of Payment

Avg Promo Value of 110k, Moderate CC use

Promo with CC

Promo with CC

Promo with CC

Spending Behaviour

600k - 900k, Filter 1.02M

Spending Behaviour

600k - 900k, Filter 1.02M

Spending Behaviour

600k - 900k, Filter 1.02M

Affordable Luxury

Affordable Luxury

Affordable Luxury

Solution

Visualss & Content Strategy

UI Visual for Economic Spender (Cluster 0 & 1)

nudge to “push” user

Price related nudge

Show facilities, but less prominent than price

Highlight price for budget user

Rating & Review

Nudge scarcity

1

2

3

4

5

6

UI Visuals for Economic Spender (Cluster 0 & 1)

How we attract economic spender:

Utilize nudge to "push" user

Rating & review for social proof

nudge scarcity to give sense of urgency

price related nudges to attract economic spender

highlight the budget-friendly price

show facilities as USP

UI Visual for Economic Spender (Cluster 0 & 1)

nudge to “push” user

4

Show more picture

2

Less prominent price,
show price as installment

3

Facilities

1

UI Visuals for The High Spender (Cluster 2)

How we attract economic spender:

Less prominent price,
show price as installment

  1. Less prominent price,
    show price as installment

Show more pictures to attract visual attention

  1. Show more pictures to attract visual attention

Utilize nudge to "push" user

  1. Utilize nudge to "push" user

Highlight Facilities to emphasize benefit

  1. Highlight Facilities to emphasize benefit

Segmented SRP (Search Result Page)

Each Category will receive different recommendations

High spender will receive :

luxurious hotel,

promo that use credit card,

hotel with higher rating

Frequent buyer will receive :

luxurious but affordable hotel

promo

average to mid-high rating

Economic spender will receive :

budget hotel,

hotel under 500k,

standard hotel rating

Each Category will receive different product card

High spender Card Strategy:

focus on visual imagery & facilities

show price as installment

Higher rated hotel

Economic & Frequent buyer Card Straegy :

more compact card

highlighted price, with price related nudges

Average rated hotel

Retrospective

What could we improve next

In reflection, this project has been a remarkable journey despite facing bandwidth constraints that hindered our ability to conduct usability testing. Looking ahead, our potential for improvement lies in expanding variables within our interface, encompassing factors like location preferences, traveler types, and facilities. Integrating these variables could significantly enhance our user experience, catering to a wider range of user needs and preferences.

As we conclude this retrospective, this serves as a stepping stone toward refining and evolving our project, aiming to create a more comprehensive and user-centric solution in the future.

©2024, Christopher Widyatmadja

©2024, Christopher Widyatmadja

©2024, Christopher Widyatmadja