How AI is quietly transforming travel
For years, travellers had to wrestle with clunky booking systems, inconsistent service, and impersonal support. But that’s changing. Mobile-first tools, powered by artificial intelligence, are helping reshape travel into something smoother, smarter and surprisingly human.
AI chat is getting better at listening
More travel companies are now using AI tools that don’t just respond—they understand. On platforms like MakeMyTrip, users can talk to “Myra,” a conversational assistant that handles everything from bookings to real-time itinerary adjustments, with empathy and context in mind. Instead of navigating menus, travellers just ask questions. It feels less like using an app and more like talking to a person.
Booking Holdings is working toward what it calls the “connected trip.” Its CEO, Glenn Fogel, sees a future where AI ties together flights, hotels, car rentals, and activities into a single, seamless experience all tailored to the traveller.
From messaging to trip planning
Tools like GuideGeek, built on OpenAI’s models, offer itinerary planning right from messaging apps like WhatsApp and Instagram. Behind the scenes, human editors monitor output for accuracy and tone, which keeps trust high and mistakes low.
Other systems go even further. The open-source project TravelAgent combines AI with tools and memory to generate personalized travel plans that include logistics, weather, local transport, and more. Early pilots show these AI agents can deliver highly usable travel advice without needing follow-up from a human agent.
Price setting, powered by AI
Behind the scenes, AI is also changing how much we pay. Airlines now use dynamic pricing engines that adjust fares in real time, based on demand, competition, and browsing behaviour. Some experiments using deep learning models showed a 36 percent lift in conversion and a 10 percent boost in revenue per offer.
As this evolves, developers are moving to more modular “microservices” architectures, which help speed up pricing calculations and allow quicker changes when markets shift. These flexible models have been linked to better user experiences and faster responses.
Improving logistics and operations
AI is also starting to show up in the way travel companies handle disruptions. Virgin Australia now uses AI to rebook passengers during delays, adjusting for group size, seating preferences, and route options. It also uses AI to help reduce food waste by predicting demand on flights more accurately.
Singapore’s Changi Airport is testing AI-powered 3D baggage scans that speed up security checks. And booking platform Webjet uses an AI tool called Trip Ninja to find the cheapest multi-city routes across dozens of airlines in seconds.
Travel advisors are using AI, not losing to it
Some independent travel agents now see AI as a time-saver, not a threat. One agency owner at Páme Travel says she uses AI to draft itineraries, manage client conversations, and prep quotes. Since adopting AI tools, her business has grown by more than 40 percent.
But even with smarter tools, experts agree: nothing replaces local knowledge or personal insight. AI helps with speed, but travellers still want that human touch.
Transparency and trust are still a challenge
Not all AI tools are being received warmly. Delta Air Lines plans to expand AI-driven pricing to more domestic flights by next year, raising concerns about opaque fees and “surveillance pricing”—where what you pay depends not just on when or where, but who you are.
Rental car giant Hertz is also under scrutiny for using AI to assess damage claims. Customers have reported being charged for damage they say didn’t happen, and have struggled to get a human to intervene.
Two trends shaping the next phase
1. Travel assistants, not search engines
We’re moving from search boxes to smart conversations. AI tools are starting to feel less like apps and more like guides capable of crafting an entire trip around a few messages. This shift could make planning a trip feel as easy as texting a friend.
2. Price shaping, with more oversight
Dynamic pricing has its benefits, but it needs checks and balances. Expect calls for regulation to grow—whether through pricing audits, algorithm transparency rules, or opt-in data practices that give users more control over how AI sees them.
AI is no longer a side story in travel, it’s part of the main narrative. It’s powering smoother bookings, quicker service, better pricing, and even trip ideas. But as it gets more powerful, the need for transparency, fairness, and accountability grows too. The future of travel may be intelligent, but it still needs to be human.
