How is Artificial Intelligence Changing Travel Decisions and What Should Brands Do to Stay Ahead?

Published on December 29, 2025

The travel industry is currently experiencing a major transformation, propelled by the rapid advancements in artificial intelligence (AI). This shift is revolutionizing traditional marketing methods and having a profound influence on how travelers make decisions regarding their travel destinations and bookings. AI is significantly altering the relationship between consumers and brands, with findings from a large-scale survey involving over 18,000 respondents across 14 countries underscoring this shift. This report reveals that AI is increasingly shaping how people choose travel experiences, signifying a fundamental change in consumer behavior. As this transformation unfolds, the travel and hospitality sectors face both opportunities and challenges, highlighting the importance of adapting to the new AI-driven landscape in order to remain competitive.

AI’s Growing Role as a Trusted Ally

A notable trend highlighted by the research is the growing trust consumers have in AI systems. It was revealed that 36% of active AI users now regard AI as more than just a tool but as a “good friend.” This represents a significant departure from AI’s traditional role as a search engine or productivity tool. Increasingly, travelers are turning to AI for personal guidance, ranging from personal development to relationship advice. This trust in AI for deeply personal matters also extends to more practical travel decisions, with consumers now seeking AI’s help in choosing accommodation or airlines, as well as planning their overall travel experiences.

This growing trust presents a valuable opportunity for travel brands to position themselves as trusted partners in the travel decision-making process. If consumers are willing to trust AI with advice on personal matters, they are likely to rely on it for making travel-related decisions as well. Consequently, it is crucial for travel companies to ensure their presence is prominent on AI-driven platforms in order to remain competitive in this evolving market.

The Expanding Influence of AI on Travel Purchases

The influence of AI on consumer purchasing decisions is becoming increasingly significant, especially within the travel sector. The research revealed that half of all active AI users have already made purchases based on AI recommendations. This shift highlights the rise of generative AI, which now ranks as the second-most trusted source of purchase advice, just behind physical stores. AI has surpassed traditional sources of information, such as search engines, brand websites, and even personal recommendations, in terms of trustworthiness when it comes to making purchase decisions.

Although only 9% of consumers consider AI to be their most trusted source for making purchases, this percentage is rapidly increasing, signaling a major shift in consumer behavior. The rise of AI-driven recommendations points to a fundamental change in how consumers discover travel options. This indicates that for travel professionals, relying solely on traditional marketing strategies will no longer suffice. AI-based recommendations have become essential in the decision-making process, requiring brands to optimize for this new paradigm.

The Evolving Relationship Between Consumers and Brands

AI is not just changing how decisions are made; it is also reshaping the dynamics between consumers and brands in the travel industry. The research identified three critical roles that AI plays in the consumer-brand relationship: the trusted guide, the loyal companion, and the second self. Each of these roles has far-reaching implications for how travel brands should approach customer engagement.

AI as the Trusted Guide

AI is increasingly serving as the trusted guide for travelers. Rather than relying on search engines or traditional travel blogs, consumers are turning to AI platforms like ChatGPT and Perplexity for travel recommendations. For example, rather than asking a search engine, “Where should I stay in Tokyo?” travelers now ask AI tools directly. As AI becomes a powerful influencer, it’s crucial for travel brands to ensure their offerings are visible and accessible on these platforms. Failing to optimize for AI-driven discovery could result in hotels or destinations being excluded from consumers’ consideration sets, regardless of the quality of their services.

AI as the Loyal Companion

AI is evolving into much more than just an information source. It is now seen as a loyal companion, capable of developing emotional connections with consumers. According to the findings, 2.3 times more travelers are likely to recommend brands that foster an emotional bond. Furthermore, travelers are 1.5 times more likely to accept higher prices from brands that offer emotionally engaging experiences. This is particularly important in the travel industry, where customer loyalty has always played a crucial role. Brands that leverage AI to create more personalized, emotionally resonant experiences are more likely to cultivate stronger relationships with customers and benefit from enhanced customer retention.

AI as the Second Self

The next stage in AI’s evolution is its role as the second self. Consumers are increasingly open to using AI as a personal shopper, capable of understanding their preferences, budget, and travel schedule, and making travel decisions on their behalf. Research has shown that 75% of consumers are willing to let AI handle their travel bookings, from flight arrangements to hotel reservations and even itinerary adjustments. This level of personalization could eventually render traditional booking methods, like banner ads and loyalty emails, obsolete. As a result, travel companies must consider the implications of this shift and adapt their offerings to meet the growing demand for AI-powered personalization.

AI’s Role in a World of Uncertainty

Another critical insight from the study is the increasing sense of uncertainty among consumers. 54% of consumers now see uncertainty as the “new normal”. Economic concerns have fueled this mindset, making more consumers reliant on AI to help them make informed travel decisions, particularly around price comparisons. However, this could lead to a “race to the bottom”, where companies are forced to compete solely on price. To succeed in this environment, brands must focus on offering unique, personalized experiences that cannot be commoditized by AI. Emotional connections and personalized services will be the key differentiators in an increasingly price-sensitive market.

Strategies for Travel Brands to Stay Competitive

To remain relevant in the rapidly evolving AI-driven world, travel brands must adapt their strategies to meet the changing needs of consumers. The study outlines several actionable strategies for brands to optimize their presence in the AI ecosystem.

Optimize for AI Discovery

Travel companies should focus on AI discovery just as they once optimized for Google search. This includes creating high-quality content, regularly updating it, and prominently displaying genuine guest reviews. Travel companies should prioritize Generative Engine Optimization (GEO), moving away from traditional SEO methods to ensure they remain visible in AI-powered platforms.

Create AI-First Experiences

Rather than simply digitizing existing services, travel brands should adopt an AI-first approach. This involves reimagining the entire guest journey with AI at its core. Brands should explore using voice, video, and augmented reality technologies to offer immersive previews of their properties and destinations. AI-powered experiences would be proactive and tailored to meet travelers’ needs, creating a seamless journey from booking to the final experience.

Build Emotional Connections

With AI enabling faster price comparisons, the focus for travel brands should shift toward creating emotional value. Offering exclusive experiences, personalized services, and unique touches that AI cannot replicate will help build long-term customer loyalty. Today’s travelers are more focused on experiences than on just securing the lowest price.

Form Strategic Partnerships

Travel companies should consider forming strategic partnerships with AI platforms to secure a strong presence in AI-generated responses. By engaging early with these platforms, travel brands can help shape how AI tools interact with consumers and ensure they remain a part of the conversation.

The Need for Trust and Transparency in AI

As AI continues to shape how travelers make decisions, it becomes crucial for brands to maintain transparency about how they use AI. Many consumers are concerned about the authenticity and impersonal nature of AI-generated content. Therefore, brands must ensure they are transparent about how AI is used, with clear consent processes and robust data protection measures. While AI can enhance the travel experience, it should not replace the human touch that makes travel and hospitality so unique.

Embracing the AI-Driven Future of Travel

The travel industry stands at a pivotal moment as AI increasingly influences the way travelers interact with brands. Those travel companies that embrace AI will have the opportunity to create more personal, helpful, and emotionally engaging experiences for their customers. The brands that adapt to the evolving AI ecosystem will not only survive but thrive in this new world of travel.

For travel companies, the time to act is now. Investing in AI capabilities, data infrastructure, and personalized experiences will ensure that brands remain relevant and competitive in the years to come. AI is not just a passing trend; it is the future of travel, and those who adopt these changes will lead the way into the future of the industry.