All eyes are on Generative AI in travel and other emerging trends. But do I even need this technology in my business? Do the advantages outweigh the risks enough to justify a long-term investment? Is there a proven return on such investments (ROI)?
These are exactly the right questions to ask. And it makes sense to approach any new tech with a bit of caution. To help you make an informed call, we analyzed 20+ real-world implementations from travel brands like Expedia, Iberia, and Booking.com, reviewed market research from leaders like Amadeus and McKinsey, and gathered direct input from both executives and everyday travelers.
By the end of this article, you’ll have a clear answer and a plan for what to do next.
Table of Contents
What is Generative AI in Travel Industry?
Gen AI is a form of artificial intelligence that creates something new, text, images, conversations, even code, based on patterns it learns from large datasets. In the tourism sector, this opens the door to tools that don’t just automate tasks, but actually generate content and experiences tailored to individual travelers.
This isn’t just about faster service. Generative AI helps companies respond more naturally to clients, suggest smarter alternatives in real time, and create entire journeys that feel custom-made. It works with language, context, and preferences, making it ideal for industries where timing and personalization matter. Basically, it’s an upgrade of existing solutions powered by Conversational AI in travel.
Here are just a few ways it’s being used today:
- Build individualized itineraries backed by user goals or budget.
- Offer instant trip suggestions through chat or voice assistants.
- Write hotel listings, tour descriptions, or blogs at scale.
- Draft personalized emails or ads driven by user-specific data.
- Answer complex traveler questions through AI agents.
- Translate messages on the fly during international trips.
- Generate review summaries, follow-up surveys, or refund notifications.
- Spot booking issues and send on-the-spot alternatives.
Compared to traditional tools, generative systems are far more flexible and creative. While older solutions often follow rules or scripts, Gen AI adapts to context and input on the go. It makes tech useful in both customer-facing and backend scenarios.
Here’s a quick comparison:
| Traditional AI in travel | Generative AI in travel |
|---|---|
| Rule-based chatbots with limited responses | Natural, free-flowing conversation agents |
| Customer segmentation and basic targeting | Unique trip ideas and tailored content per user |
| Static templates for ads or support messages | Context-driven dynamic text and visuals |
| Predefined logic for booking workflows | Real-time suggestions based on traveler needs |
| Used mostly for automation | Employed for both automation and content creation |
That difference, from predictable to adaptable, is what’s driving so many travel brands to explore this technology. Let’s next look at why it’s becoming such a strong force in the industry.
Why Generative AI-Powered Apps Are Redefining Traveling
So what’s fueling this shift toward smarter tools in tourism? It comes down to a few pressure points the sector can’t ignore; challenges that Gen AI is uniquely positioned to help solve. Let’s break them down.
1. Staffing shortages are getting worse
- 92% of small and mid-sized travel businesses say they’re struggling to hire skilled staff, mostly because there just aren’t enough applicants.
- In the U.S., 7 in 10 hotels with job openings state they can’t find sufficient personnel, even with active hiring efforts.
This kind of strain creates longer wait times, slower service, and overworked employees. When teams are stretched thin, Gen AI pitches in, responding to guests, crafting content, translating, and more.
2. Travelers are expecting more
People are savvy with artificial intelligence, and they expect companies to keep up.
- One survey found that 22% of travelers used tools like ChatGPT or Google Gemini to arrange their journeys in late 2024. That’s up 40% from the year before. Even more telling: 82% said they’d do it again because the results were faster and more useful.
- Among high-value tourists, like frequent flyers, luxury guests, and loyalty members, 48% already use Generative AI in travel to plan or modify trips. They’re not just curious. They want smarter service.
3. From reactive automation to predictive personalization
Old-school AI solutions depend on rule-driven logic. They classify data, segment clients, or send canned responses. They’re good at doing one thing at a time.
Generative AI in travel is different. It understands context, personal preferences, and timing. It builds custom itineraries, replies to unusual questions, or writes follow-up messages that feel human.
And this shift matters for business. McKinsey reports that brands using personalized experiences can grow earnings by up to 25% because travelers are more likely to return when the service actually feels tailored to them.
That’s why many companies are shifting away from basic automation and into content creation, real-time assistance, and predictive services that adjust on the fly.
Next up: let’s take a closer look at what this new wave of technology is doing for forward-thinking players in space.
6 Key Benefits of Generative AI for Travel Companies
1. Hyper-Personalized Experiences
Before: Generic travel packages, endless scrolling through filters, offers informed by demographics, not intent, and the same recommendations for all customers.
After:
- AI-curated itineraries tailored to interests, budget, and style.
- Dynamic tips provided by a Gen AI-fueled chatbot that evolve with user input.
- Destination and activity picks matched to real-time context.
- Fitted upgrades and upsells triggered at the right moment.
Impact:
- 85% of travelers reported higher satisfaction when receiving interest-based suggestions.
- 70% found AI-powered tools like virtual guides improved their cultural experience.
2. Real-Time AI Assistance
Before: Long wait periods, support limited to business hours, social media DMs unanswered for hours, and repetitive queries slowing down agents.
After:
- Always-on assistance through chat, voice, and messaging apps.
- Fast answers in multiple languages.
- Natural conversations powered by LLMs.
- Instant resolution of FAQs, booking changes, and emergency requests.
Impact:
- 85% of email replies take up to 24 hours, and 66% of social messages get delayed over 6 hours.
- Artificial intelligence can step in and answer almost instantly, just what 76% of customers expect when they reach out.
3. Content Automation for Marketing & Support
Before: Manual email and campaign creation, time-intensive agent replies, no consistency across channels, and resource-consuming copywriting.
After:
- Automated drafting of personalized email campaigns at scale.
- Auto-responses that reflect tone, channel, and client history.
- Support messages adapted to user sentiment and query context.
- Multilingual materials, blogs, and captions generated in minutes.
Impact:
- AI emails scored 18% higher in customer satisfaction.
- 31% of marketers saw up to 20% ROI boost; another 30% saw 21–30% after intelligentization.
- 59% cited efficiency as the top KPI improved by the technology.
4. Smart Itinerary Generation & Trip Planning
Before: Handcrafted travel plans, static journey agenda with no flexibility, frequent context switching, and no real-time updates once a trip is booked.
After:
- End-to-end itinerary preparation in seconds.
- Plans that update on the go based on delays, changes, or user input.
- Seamless sync with flight, hotel, and activity platforms.
- Visual flowcharts or summaries for easy sharing and edits.
Impact:
- 85% of generated itineraries met or exceeded traveler expectations.
- AI integrations cut planning workload by 60%.
5. Revenue Optimization & Dynamic Pricing
Before: Static prices set by season or past trends, no real-time reaction to demand or booking behaviors, manual price overrides for offers and ancillaries, and missed upsell and cross-sell opportunities.
After:
- AI adjusts prices dynamically, relying on live fluctuations and competitor data.
- Personalized helpful add-ons during checkout.
- Smart packaging informed by traveler type, timing, and trends.
- Optimized ancillary pricing using predictive models.
Impact:
- Dynamic pricing increased conversions by 36% and revenue per offer by 10% in the airline case studies.
6. Operational Efficiency Across Departments
Before: A ton of tickets, emails, and follow-ups, manual routing and prioritization of tasks, disconnected systems across units, and repetitive content and decision-making overhead.
After:
- AI triages and resolves basic queries automatically.
- Sentiment analysis and tagging to prioritize escalations.
- Cross-team insights from unified AI dashboards.
- Auto-generated reports, summaries, and updates.
Business Impact:
- Intelligent tools are able to increase overall productivity by 30–50% when fully scaled.
Let’s shift from “what it can do” to “where it’s actually working” across the travel ecosystem.
Explore how AI can support your business goals with
Ted Franz, VP of Sales & Partnerships
Book a CallField-Tested Generative AI Use Cases in the Travel Industry
A recent report from Amadeus shows that companies are picking up the pace with Gen AI and not just testing the waters anymore. The top applications include digital booking assistance (53%), activity and venue recommendations (48%), content creation (47%), and support for staff and customer feedback (45%). It’s also showing up during the trip itself (44%) and to simplify internal workflows (41%).
Booking Platforms
Problems: Rising reservation complexity, fraudulent activities, limited personalization, manual client care, and poor engagement.
Where Generative AI in travel fits in:
- Generates trip plans during the setup flow based on intent, not just filters;
- Offers personalized suggestions with live pricing and availability;
- Detects fraud signals using behavioral analysis mid-booking;
- Guides users with conversational assistants during checkout;
- Promotes targeted upsells (seat upgrades, premium support, extras) at just the right step;
- Create booking summaries and confirmations in the traveler’s language.
Airlines
Problems: Flight delays, overwhelmed support teams, static seat and ancillary pricing, and unresponsive service.
Where Generative AI in travel fits in:
- Predicts schedule disruptions and sends automated rebooking options via mobile or chat;
- Supports travelers during setbacks with Generative AI chatbots;
- Adjusts ticket and seat prices dynamically according to demand;
- Suggests upgrades or add-ons during digital check-in;
- Delivers gate updates and alerts in multiple languages;
- Summarizes in-flight or post-flight feedback for faster action.
Hotels and Resorts
Problems: Strained front desk staff, inconsistent guest outreach, limited upselling, and siloed insights.
Where Generative AI in travel fits in:
- Welcomes guests with AI-generated messages and local guides pre-arrival;
- Assists with check-in questions via in-room or lobby kiosks;
- Recommends upgrades or amenities via hotel chatbot using data from previous interactions;
- Collects post-stay surveys and turns them into visual sentiment reports;
- Responds to reviews across platforms in a localized, natural tone;
- Creates visual content for rooms, deals, or on-site dining automatically.
Travel Agencies and OTAs
Problems: Labor-intensive itinerary creation, limited multilingual support, and generic marketing initiatives.
Where Generative AI in travel fits in:
- Builds journey programs across air, hotel, and car with client preferences in mind;
- Adapts plans in real time when user budgets or timing change;
- Develops custom multilingual itineraries for global travelers;
- Generates dynamic content for destination guides and blogs;
- Powers targeted email or ad campaigns tailored to search behavior;
- Follows up after the trip with personalized thank-you notes or survey invites.
Transportation and car Rentals
Problems: Unplanned downtime, emergency disruption, routing inefficiencies, slow support
Where Generative AI in travel fits in:
- Sends alerts before an automobile malfunction affects travelers;
- Offers optimized route suggestions guided by traffic, road closures, and delays;
- Helps customers modify or extend bookings through chat or voice agents;
- Recommends add-ons like child seats, insurance, or refueling as per context;
- Translates roadside emergency aid into multiple languages;
- Summarizes service reviews to flag performance issues by location or vehicle type.
So, Gen AI isn’t just making trips smoother; it’s working quietly in the background, too. A growing number of businesses are employing it to level up how they market, promote, and stay connected with their audience. Let’s see how that’s playing out.
How Brands are Using Generative AI in Travel Marketing
According to the Epsilon report, domain marketers are leading the way in artificial intelligence usage. With a 96% industry adoption rate and 43% already calling their AI use “extremely mature”, hospitality is one of the few sectors moving past experimentation into full-scale implementation.
Content creation is at the heart of that shift. In fact, 65% of specialists believe automated copywriting will be the most transformative capability over the next five years. And we’re already seeing that play out with Gen AI powering:
- Social media post generation tailored to current trends and traveler interests;
- Personalized email campaigns based on user preferences, location, and timing;
- Dynamic ad copy testing that adapts to different demographics or channels;
- AI-generated destination blogs and promotional videos to keep content fresh and SEO-friendly.
But it’s not just about volume; it’s about making every piece of marketing smarter. 33% of travel brands rely on generative solutions to deliver customized recommendations, while others adopt it for sentiment analysis, price optimization, or even virtual tours to boost engagement.
Behind the scenes, 61% of marketers are utilizing tech for customer journey mapping, helping teams better understand when to engage users and with what kind of messaging. It creates a more cohesive workflow, from the first Instagram scroll to the post-trip follow-up.
That’s the business angle. But what about the people themselves? Let’s flip the perspective and look at how this technology is adding value for them, too.
How Travelers Benefit from Generative AI within the Tourism Sector
Travel is full of unexpected hiccups, and it’s often the travelers who bear the stress when things go sideways. Below are a few everyday situations where Gen AI is able to make the experience smoother, faster, and more human.
#1: My Luggage Is Lost, and No One Can Help
You just landed after a long-haul flight, but your bag didn’t. The service desk line wraps around the terminal, and you’ve got somewhere to be.
With Generative AI for dispute resolution built into the airline’s app, you can report the issue instantly, get real-time updates, and even receive suggestions on essentials to buy nearby. No need to chase down staff or wait for a callback.
#2: My Flight Changed, and Now I’m Stuck
A gate change or cancellation hits while you’re in transit, and by the time you realize it, it’s too late to rebook easily.
Instead of scrambling, a smart avatar notifies you right away, offers new flight options, helps with hotel vouchers or delay compensation, and answers the questions; all through your phone, in your preferred language.
#3: I Can’t Read or Ask for Anything
You’re in a new country and can’t understand the signs, menu, or even request assistance. Translation apps sort of work, but they’re clunky and often confusing.
Built-in Generative AI-powered translation tools, on the contrary, ensure communication is natural and smooth. You can inquire what’s in a dish, explain an allergy, or ask for local tips, in your own words, and get responses that actually make sense.
#4: I’m Too Tired to Plan Anything
It’s late, you’re jet-lagged, and you still haven’t figured out what to do tomorrow. Searching through blogs or travel sites feels like a chore.
A voice-first planner asks what kind of day you want, relaxing, adventurous, quiet, and builds a personalized itinerary on the spot. It even includes timing, locations, and booking options so you can sleep like a baby.
Of course, even the smartest tools come with limitations. As more companies roll out Gen AI, some important questions are starting to surface. Let’s take a closer look.
Key Challenges and Ethical Implications of Generative AI in Travel Applications
Data Privacy and User Trust
Consequences of mishandling AI: Loss of customer trust, perception of unfair treatment, and legal or regulatory pressure.
Example: When Delta announced plans to use technology to help set ticket prices, it didn’t land well with everyone. Some U.S. lawmakers pushed back, warning the system could “exploit” personal data to charge people more. The backlash shows how quickly public trust can erode.
Recommendations:
- Be transparent about what data is collected, processed, and stored.
- Limit collection to only what’s essential for the functionality.
- Give users clear opt-in mechanisms and easy access to adjust their privacy settings.
- Apply sanitization techniques to remove or mask sensitive information.
- Employ strict access controls and encryption to secure data at rest and in transit.
- Implement model guardrails to prevent misuse or unintended inferences.
- Conduct regular audits and ensure compliance with relevant regulations (e.g., GDPR, CCPA).
Biased Recommendations
Consequences of unfair systems: Reinforced stereotypes, exclusion of certain user groups, and deteriorated reputation.
Example: A UK report raised concerns about public sector AI tools displaying racial and socioeconomic bias. If similar flaws go unchecked in travel, like an assistant giving less favorable offers to certain demographics, it could quietly kill trust and harm brand equity.
Recommendations:
- Regularly test outputs for signs of demographic, geographic, or behavioral bias.
- Train models on diverse datasets that reflect a wide range of traveler profiles and preferences.
- Use fairness-aware algorithms and apply bias correction techniques where necessary.
- Log Generative AI in travel decisions and create review loops for flagged or sensitive outputs.
- Involve multidisciplinary teams (e.g., ethics experts, designers, legal) when shaping user experiences.
- Clearly communicate when advice is algorithm-driven and allow users to adjust or personalize results.
Risk of Hallucinated or False Information
Consequences of inaccurate data: Misleading travelers, poor service experiences, increased support volume, and potential legal exposure.
Example: Air Canada’s AI chatbot gave a traveler incorrect refund policy details. When the user followed the advice and filed a claim, the airline refused to honor it, arguing the bot was wrong and not legally binding. The court disagreed and ruled in the client’s favor.
Recommendations:
- Use retrieval-augmented generation (RAG) to ground answers in verified, up-to-date sources.
- Clearly label AI-generated content and include disclaimers for policy or legal topics.
- Apply fact-checking protocols to sensitive or high-risk outputs (e.g., visas, refunds, safety).
- Design fallback options to escalate unclear or ambiguous queries to human agents.
- Continuously fine-tune and monitor models to reduce hallucination frequency in critical workflows.
- Store and analyze incorrect outputs to prevent repeat issues and improve training datasets.
AI Transparency and Accountability
Consequences of poor visibility: Customer confusion, lost trust, unfair treatment, and reputational damage.
Example: Uber drivers protested the company’s opaque fare system, demanding explanations for how rates were calculated. The “black box” model left both clients and workers in the dark. Without transparency, users can’t tell if pricing is fair or biased.
Recommendations:
- Disclose when technology is involved in pricing, advice, or support decisions.
- Use explainable AI techniques to make outputs traceable and understandable.
- Provide users with reasons behind automated actions.
- Involve humans in sensitive or high-impact judgments.
- Establish internal review boards or ethics teams to oversee applications in customer-facing scenarios.
Despite the challenges, travel brands are getting more confident with Gen AI. The conversation is moving from early wins to what’s next. Let’s take a look at the directions shaping the next wave of innovation.
Generative AI in Travel Industry: New Directions and Trends
Not long ago, using voice to plan a trip or sharing a photo to get instant itinerary ideas sounded futuristic. But in 2025, domain tech is catching up to traveler expectations fast.
We’re now seeing applications that combine voice, visuals, and text in a single conversation. Arranging group trips? Machine intelligence can now juggle preferences and budgets for everyone involved. And with more brands partnering directly with AI vendors, the technology is evolving even faster and becoming more accessible.
Here are just a few signals of where things are heading next:
- Airline-specific autonomous agent assistants. Bots that not only suggest itineraries but book flights and hotels on behalf of users are growing into functional tools enabled by digital IDs and preference-aware interfaces. For example, Iberia launched the world’s first custom GPT within ChatGPT in June 2025.
- Wearables and contextual recommendations. Platforms like INDIANA marry data from wearables, weather, and location to offer real-time travel suggestions that reflect on-the-ground context.
- AI + microservices systems for backend resilience. These can handle traffic spikes better, reduce latency, and optimize resources dynamically.
- Conversational content driven by visual input. Expedia’s team is already testing features where users send a photo or video found on Instagram, and the system recognizes the goal and builds viable route options.
- Connected-trip integration powered by Generative AI in travel with all elements, like flight, hotel, transport, and leisure activities, into one seamless experience tailored to the user’s profile.
- Digital twins for airport operations. British Airways operates real‑time simulations of Heathrow’s towing processes to reorganize aircraft movements.
- Hyper-responsive planning via real-time data scraping. Companies like Kayak pull live information to tailor itineraries instantly according to availability, pricing changes, or upcoming events.
Now, let’s get practical. If you’re wondering how to bring these capabilities into your own company, here’s where to start.
Getting Started with Generative AI in Your Travel Business
Artificial intelligence is everywhere, but execution is where most brands get stuck. Olga Hrom, Director of Pre-Sales Strategy & Delivery, has seen it firsthand: strong interest, scattered efforts, and little long-term traction. Her advice?
- Start with one high-impact use case. Think: support automation, itinerary creation, or campaign personalization. Don’t try to “AI everything” at once.
- Validate your data readiness early. Before selecting tools, audit your datasets for completeness, accessibility, and compliance.
- Pick models that match your use case and scope. Whether it’s OpenAI, Jasper, Midjourney, etc, choose as per your goals, budget, and technical complexity. Integration, scalability, and ease of tuning should all factor in.
- Design pilots with real KPIs. Define success metrics like CSAT, bookings, or ticket resolution time, and track progress from the start.
- Don’t go it alone. Partnering with a Generative AI consultancy saves time, avoids missteps, and helps you scale faster.
Want the full breakdown? Check out the implementation guide with detailed steps, common pitfalls, and how to build a roadmap that actually scales.
Top Brands Already Using Generative AI in Travel and Tourism
Once your strategy is in place, it’s worth seeing how leading companies are employing Gen AI in hospitality to enhance real experiences, not just test features.
- Master of Code Global partnered with a luxury hotel chain to develop a multilingual, AI-powered voice assistant. It handles everything from room controls to spa bookings, cutting wait times by 31% and boosting guest satisfaction by 87%, while reducing front desk burden by 42%.
- Expedia integrated ChatGPT into its mobile app to power open-ended, conversational trip planning. Users can explore destinations, get recommendations, and automatically save discussed hotels into a trip folder for easy booking.
- Airbnb is rebuilding its internal search engine with Generative AI in travel at the core, aiming to provide natural language search results for unstructured queries like “a quiet place with a view and a hot tub.”
- Lufthansa Group launched several solutions, including “George,” a GPT-based assistant for flight training FAQs, “Holly,” a personalized trip advisor for Eurowings Holidays, and smart documentation tools for complex cargo reservations. These innovations improve service speed, reduce manual load, and personalize the journey.
- Booking.com rolled out Smart Filter (search using natural language), Property Q&A (instant answers about listings), and Review Summaries. Its AI Trip Planner is expanding across multiple markets, helping travelers generate curated itineraries faster and with more confidence.
Future Outlook: Is Generative AI in Tourism a New Standard?
So, where is all this headed? In short: into the mainstream. Travel startups are attracting serious venture capital interest, with Gen AI-based booking tools, itinerary planners, and service bots becoming go-to pitches. Meanwhile, major brands are scaling up, moving from pilots to production. What used to take months of human effort can now be handled in minutes, at scale, and with context.
Which brings us back to those big questions from the beginning:
- Do you need this technology? Yes, if you want to stay relevant to how travelers plan and book today.
- Are the benefits worth the risk? With proper safeguards, the upsides: higher efficiency, better guest experiences, and new revenue streams, far outweigh the pitfalls.
- Is there real ROI? Absolutely. From a 31% reduction in wait times to 20% boosts in marketing ROI, the returns are already here and growing.
If you’re ready to move from “should we?” to “how do we begin?“, Master of Code Global can help. Whether you need a prototype or a fully integrated solution, let’s make something your guests will love. Let’s start with a discovery call to discuss how our custom Generative AI development services can support your goals.
FAQ
What Makes Generative AI in Travel Different from Traditional Automation?
Gen AI produces original, adaptive content, like personalized answers or itineraries drawn from context and input. Traditional systems follow pre-set rules, offering limited flexibility or creativity.
Will Gen AI Replace Human Travel Agents?
Unlikely. This technology is best used to boost efficiency, not eliminate personal service. Human agents still deliver empathy, judgment, and complex decision-making that machines can’t fully replicate.
Is Generative AI in the Travel Industry Accessible to Small Companies?
Yes, many platforms offer pay-as-you-go or no-code solutions that don’t require a big tech team. It’s easier than ever for smaller brands to pilot use cases like virtual assistants or content generation.
What Are the Risks of Using Gen AI Tools in Customer-Facing Roles?
If not properly monitored, these applications can generate inaccurate, biased, or confusing responses. This harms brand trust, especially when dealing with sensitive issues like bookings or emergencies.