How AI is Transforming Travel Planning and Booking

The Transformative Role of AI in Travel Planning and Booking

Artificial intelligence (AI) has been a buzzword across various industries, and the travel sector is no exception. While AI has not yet revolutionized how most travelers plan and book their trips, its influence is steadily growing. Skift’s 2025 Megatrends report suggests that significant changes are on the horizon, promising to reshape the travel landscape in ways we are only beginning to understand.

To explore the current state and future potential of AI in travel, we consulted our answer engine, Ask Skift 2.0, and supplemented this with additional insights into upcoming developments.

AI’s Impact on Travel Booking: Insights from Ask Skift

AI is fundamentally altering the travel booking landscape, affecting both consumer interactions with travel platforms and the operational dynamics of these platforms. Steve Hafner, CEO of Kayak, predicts that 2025 will be a pivotal year, with the first successful commercial agreement between an AI engine and a major travel player acting as a catalyst for widespread AI-driven collaborations and innovations in the industry.

One of the most significant changes AI is bringing to travel booking is the potential shift in consumer behavior away from traditional travel sites and apps. With AI models like ChatGPT offering instant answers and solutions, consumers may increasingly turn to social media and AI platforms for their travel needs, bypassing traditional channels. This shift could result in a decline in the use of dedicated travel apps and websites.

Travel companies are responding by developing their own large language models to keep pace with AI advancements. For example, Kayak is building its own AI model while collaborating with Google’s Gemini to enhance its AI capabilities. However, there is concern that even with superior proprietary AI, users might default to broader platforms like Gemini for convenience.

AI is also enabling travel companies to leverage social media as a performance marketing channel. Influencers, now seen as the new power brokers in travel, play a crucial role in shaping consumer decisions. Platforms like Expedia have integrated influencer marketing into their booking process, allowing curated recommendations to be directly bookable. Kayak plans to adopt a mass-market approach, enabling users to share their favorite destinations on social media and earn rewards if bookings are made through their recommendations.

These developments underscore AI’s transformative impact on the travel booking process, making it more integrated with social media and personalized through advanced data analytics. As AI continues to evolve, it is set to redefine the travel industry’s dynamics, influencing both consumer behavior and business strategies.

AI’s Broader Implications for Travel Planning

Disrupting Travel Search Paradigms: Thomas Reiner, a partner at Altimeter Capital, recently stated at the Skift Megatrends event in New York that AI would completely disrupt the search paradigm in the travel industry. He noted that the boom in AI-generated search could negatively impact online travel agencies and metasearch engines.

Reiner also predicted that AI assistants would become the primary means by which consumers book travel in the future. “Everyone will have a personal assistant in their pocket that can do everything for them,” Reiner said. “And so whether that’s booking a hotel, a flight, calling an Uber or Waymo or a Tesla FSD RoboTaxi — it’ll be able to do all that for you. It’ll have memory of who you are, what your preferences are, and it’ll just be easy.”

OpenAI recently announced the release of a digital assistant capable of autonomously completing online searches and making purchases for travel, events, and restaurants. During a live demo, OpenAI representatives showcased how the new tool, called Operator, can pull up hotels requested by a user and book them.

Personalizing Travel Experiences: Users who have added Expedia Group’s generative AI travel assistant Romie to messaging chats in WhatsApp or iMessage can receive personalized recommendations based on their texts. Romie can even help travelers rearrange itineraries in the event of a trip disruption.

Google has introduced AI-generated summaries at the top of traditional search results called AI Overviews, which can generate an itinerary with flight and hotel options. Users on Booking.com can now ask the site’s AI trip planner property-specific questions after asking the chatbot to perform a general search for hotels.

AI in Destination Marketing: A growing number of destination marketing organizations (DMOs) are incorporating AI into their operations. For instance, Enjoy Illinois, the website run by the Illinois Office of Tourism, has developed an AI chatbot named Big Lincoln that can provide links to relevant information, including answers to questions users may have about driving on Route 66.

Additionally, AI trip planning website Mindtrip launched a business-to-business setup called Mindtrip for Business, serving tourism boards and DMOs. Mindtrip had already been working with six organizations to pilot a product.

AI as a Source of Travel Inspiration

Generative AI is often viewed as a source of travel inspiration. At the Skift Global Forum last September, 36% of the 1,500 travel executives surveyed stated that inspiration and ideation were currently generative AI’s primary uses.

Alaska Airlines operates an AI tool enabling users to ask for suggested flight destinations based on a general topic of interest — for example, a location famous for beaches or one home to popular ski resorts.

The Netherlands’ flag carrier KLM also believes the booming technology can inspire travelers to book flights. The airline launched Ask Atlas, an AI-powered recommendation platform that invites users to create their ideal vacation destinations by making selections in categories such as their interests, preferred architectural styles, and travel companions.

• AI is reshaping travel booking by integrating with social media and personalizing experiences through data analytics.
• AI assistants are predicted to become the primary means of booking travel, offering convenience and personalized service.
• Destination marketing organizations are increasingly adopting AI to enhance their operations and engage travelers.
• Generative AI serves as a source of travel inspiration, helping travelers discover new destinations and experiences.

As AI continues to advance, its role in the travel industry is set to expand, offering new opportunities and challenges for both consumers and businesses. The future of travel planning and booking is poised to be more dynamic, personalized, and integrated with technology than ever before.