From personalized itineraries to instant bookings, generative AI is reshaping how we travel – but not everyone is ready
May 7, 2025
Artificial intelligence is rapidly reshaping the travel industry, offering hyper-personalized, real-time planning through conversational interfaces and generative AI. From crafting entire itineraries from a single prompt to booking hotels, meals, and activities in seconds, AI is reducing the need for traditional travel agents — especially for mainstream and budget travel. While ultra-luxury clients may still prefer human touch, the rest of the market is seeing a shift toward AI-powered experiences.
Key takeaways
- AI-powered itineraries: Startups like Mindtrip offer full travel planning via generative AI, including hotels, restaurants, and sightseeing, with bookings made directly through apps or partner sites.
- Big tech involvement: Companies like Google (Gemini), OpenAI (Operator), and Anthropic (Claude) are entering the holiday planning market.
- Established brands adapting: Expedia (Romie) and Booking.com (Smart Filter) have added AI tools for more intuitive travel planning.
- Customer service efficiency: Tools like Club Med’s WhatsApp chatbot dramatically reduce response times compared to human agents.
- Personalization as key driver: AI offers tailored, flexible, real-time travel management without human intervention.
- Barriers to adoption: Small and mid-sized travel businesses lack the infrastructure for large-scale AI use, potentially slowing industry-wide adoption.
- Legacy players’ advantage: Larger platforms may leverage their existing customer bases and resources to reassert dominance.
- Luxury segment still human-centric: Ultra-luxury travelers are likely to continue preferring human travel agents for bespoke service.
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