From AI-powered assistants that streamline bookings to innovations such as demand prediction, dynamic pricing, and customer service chatbots, AI’s influence on travel is growing by the day.

As this rapidly evolving technology reshapes the industry, it raises an important question: can AI truly replicate the personalised service of human travel agents, or will it work alongside them to permanently alter the future of travel planning?

How AI can plan a traveller’s perfect trip using their search history

AI is rapidly reshaping travel and tourism businesses and how tech-savvy travellers plan their journeys.

Its ability to process vast amounts of data and provide instantaneous results has improved customer service and saved time for many.

One major area of disruption is personalisation. AI-driven algorithms analyse a traveller’s browsing and booking history and their social media activity then create bespoke travel recommendations.

Search engine KAYAK was one of the first travel companies to announce its integration with ChatGPT.

“This feature allows users to interact with KAYAK’s search engine more conversationally and intuitively on the site and as they are planning a trip,” explains Matthias Keller, KAYAK Chief Scientist and SVP of technology.

“For example, users can ask questions like, ‘Where can I fly to from London for under £300 in April?’ and receive personalised recommendations based on KAYAK’s extensive travel data.”

How AI can save you money on travel

Dynamic pricing is another industry game-changer. To optimise pricing, AI algorithms assess real-time variables like demand, seasonality, and traveller preferences.

This ensures competitive rates for consumers while maximising revenue for businesses. Tools like KAYAK’s ‘Best Time to Travel’ also help users compare prices and predict trends, enabling them to make informed decisions.

AI also helps consumers through chatbots and virtual assistants. These systems, powered by natural language processing (NLP), can answer complex queries, make reservations, and provide recommendations in multiple languages.

Expedia’s Romie, another AI-powered personal assistant that learns users’ travel preferences, now acts as a travel agent, concierge, and personal assistant. Itineraries can be updated in the moment, and disruptions – such as weather changes – are flagged instantly.

As Keller notes, AI is paving the way toward a future where consumers “no longer need to search for information, they’ll get the right answers instantly.”

Limitations of AI in travel: The human touch matters

While using AI in travel planning can save travellers money and time, it also has shortcomings.

The most significant limitation is its inability to replicate the emotional intelligence and intuitive problem-solving qualities of human travel agents.

Recent examples highlight the pitfalls of over-reliance on AI. In a widely ridiculed incident, a Microsoft AI-generated travel guide for Ottawa, Canada, recommended tourists visit the “beautiful” Ottawa Food Bank. Ranked as the No. 3 must-see attraction – above attending an Ottawa Senators hockey game – the inclusion sparked widespread backlash and was promptly removed.

This blunder underscores how AI’s lack of contextual understanding can lead to glaring, often humorous errors, undermining its credibility in travel planning and booking.

Will AI replace travel agents?

Travel planning isn’t just about booking flights and hotels – it’s about understanding individual preferences, managing expectations, and addressing clients’ needs and unique preferences.

Take, for example, a family planning a multi-destination trip with specific dietary or mobility requirements. This kind of complex planning needs more than a quick AI recommendation. While AI can be used for basic tasks or travel ideas, it struggles to provide the nuanced advice and tailored solutions that human agents bring.

Sarah Davies, an independent travel planner at Life Begins at Travel, highlights the enduring importance of human expertise. “AI has its place in travel planning and provides a good starting point for people to get ideas. It can’t, however, do the due diligence and provide the personal touch that’s a crucial element of a travel agent’s service.”

Hazel McGuire, Intrepid Travel’s UK Director, recognises AI’s role in logistics while also understanding the value of human connection. “We have already started to see the impact AI is having on the travel industry. So far, these have been beneficial in logistical planning details such as price-focused research, like finding the best rates for hotels and flights.”

However, McGuire notes that AI falls short when delivering unique, authentic experiences. “At Intrepid, our point of difference is our network of offices and local guides who can discover unique travel experiences that can’t be found online.”

When things go awry, human agents truly shine. Imagine arriving at your hotel only to find it overbooked.

AI might offer accommodation alternatives, but it can’t negotiate on your behalf or provide the level of reassurance a human can. Travel agents offer solutions, manage frustrations, and rebook trip elements – something bots can’t replicate.

McGuire is confident that AI will never fully oust reputable travel companies and agents for this reason: “While AI can make parts of planning more efficient, it will never replace the human touch.

“The travel industry is created by people for people, and we are confident travellers will still want a human connection when choosing their holidays.”

Bridging the Gap: AI and human collaboration

Right now, AI is best positioned as a complementary tool rather than a replacement for travel agents. By automating routine tasks such as bookings and monitoring flight delays, AI potentially frees agents to focus on crafting unique itineraries and addressing complex needs.

Simon Powell, CEO of travel technology firm Inspiretec, warns that failing to adopt AI risks missing significant opportunities for the travel industry. “We need to augment travel agents, provide them with the technology and help them to do a better job.”

Speaking at the Travel Weekly Future of Travel Conference, Powell called AI a “game changer” that the industry must embrace. “This isn’t going to replace the travel agent. As an industry we need to adopt it. We need to empower agents because if we don’t, we’re going to miss out on an awful lot.”

AI’s role in transforming operations is already evident in the hospitality sector. Alix Boulnois, Accor’s Chief Business, Digital, and Tech Officer, highlights how deeply integrated technology is in the company’s operations: “Tech is everywhere, in everything we do. It’s in our hotels, distribution, loyalty programme, and services to hotel owners.”

This extensive use of technology is not about replacing staff but streamlining and improving operational efficiency in hotels and resorts.

Generative AI, in particular, plays a crucial role in personalising guest experiences. “All our commercial emails are generated by AI and reviewed by a human, resulting in significant time savings,” says Boulnois.

By processing vast amounts of data, AI can then help Accor target what to show to individual guests, creating a tailored and time-efficient experience.

Accor also leverages AI to curate personalised content zones on their digital platforms, recommending hotel and destination options based on each guest’s preferences. This approach illustrates how AI is becoming a powerful tool in travel, not as a replacement but as an augmentation that enables more customised experiences.

As technology develops, the travel industry seems to be cautiously reaching a consensus: AI should complement, not replace, human expertise. Instead, the sector is poised to deliver smarter, more personalised travel experiences that harness technology while maintaining a much-needed human touch.