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Travel and AI: Do Consumers Think AI Can Solve Their Booking Pain Points?

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With the explosion of tools like ChatGPT, generative artificial intelligence has taken the world by storm. AI can help automate time-consuming, tedious, and taxing tasks ranging from customer service support to writing college admissions essays and everything in between. AI has applicability in virtually any industry, including a sector that is heavily rebounding post-pandemic: travel & tourism. 

Several new travel AI tools for planning hit the market this year, including TripGenie and Roam Around. In addition, major travel brands like Expedia and Kayak were among the first plugins ChatGPT launched. These tools are designed to customize travel routes, itineraries, and travel booking advice in real-time, communicate with hotels, draft travel budgets, and even function as a personal travel assistant. But how do consumers perceive travel AI tools, and do they trust them? 

Our latest report, U.S. Travel Insights: AI Tools for Vacation Planning/Booking, explores consumer perceptions of AI tools and whether these tools can alleviate the time, expense and strain of travel planning in 2024 and beyond. 

Read on to see what the survey results mean for travel & tourism brands looking to meet their customers’ needs better. 

Gen Z and Millennials find vacation planning cumbersome

When it comes to sentiments about vacation planning, distinct differences exist among the younger and older generations of U.S. consumers.

Planning a vacation is perceived as time-consuming and stressful, particularly for the younger generations. Gen Z and millennials are likelier to report that planning is time-consuming, 64%, and stressful, 58%. On the other hand, a lesser proportion of Boomers and older generations report these factors while planning, at 51% and 30%, respectively.

Travel & tourism brands should be mindful of how younger and older consumers’ pain points differ when developing strategies to reach these audiences. 

Gen Z and millennials see some benefits to using AI tools, but take the information provided with a grain of salt

When considering how travel and AI tools fit into their lives, Gen Zers and millennials are not willing to take the information provided by AI tools at face value. More than three-quarters (76%) say that if they used AI to book travel, they’d double-check all the information it provided.

 While more than half of Gen Zers and millennials think AI can offer interesting itinerary ideas (60%) and help them save time (56%) and money (54%) when planning travel, brands should be mindful of the extra time consumers may need to double check the information AI tools provide if they are considering highlighting time savings in their marketing materials.

While AI can be useful, a human touch is also valued. 56% of Gen Zers and millennials think human travel agents are better than AI. Trust is also important: 46% of Gen Zers and millennials say they would only use an AI tool if it were offered by a travel agency/website they trust, and 41% don’t trust AI for planning travel at all. 

Implications for travel & tourism brands

Understanding how Gen Z and millennial consumers (and other consumers at large) feel about and participate in planning and booking trips means travel & tourism brands can better tailor their messaging and offers. Travel & tourism brands that are considering how to incorporate AI into their offering (or enhance what they already offer) must be mindful of consumers’ concerns and preferences to effectively address their pain points and highlight the features that matter most to them.

In addition, travel agencies and agents may benefit from highlighting the added value and trustworthiness a human travel agent provides (while keeping in mind that travel AI tools are likely here to stay).

For more information on the concerns all generations have toward using travel AI tools for their trip planning, download our full report.

Leger can help travel & tourism brands determine how to think about AI and their consumers

We have extensive experience with all facets of the travel & tourism industry, including business travel, tourism, the luxury travel market, and more. We use our deep industry expertise and proprietary travel & tourism online research community to provide rapid, responsive travel market research solutions tailored to each brand’s unique needs.

Contact us today to speak with our research experts. 



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MP Govt Signs Deal with Submer to Build Eco-Friendly AI Data Centres

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 The Madhya Pradesh State Electronics Development Corporation (MPSEDC) has signed a Memorandum of Understanding (MoU) with Spain-based Submer Technologies. 

The agreement will pave the way for developing up to 1 gigawatt of next-generation, AI-ready data centre capacity in Madhya Pradesh, using Submer’s advanced cooling technologies. These technologies, like immersion cooling and direct-to-chip solutions, help save energy, reduce water usage, and lower the overall environmental impact of data centres.

 “Following our visit to Submer’s facility, we are convinced of the potential for transformative collaboration. This partnership reflects our vision for sustainable technology, job creation, and positioning Madhya Pradesh as a preferred destination for global innovation,” Mohan Yadav  CM, MP said.

The deal was finalised after a high-level visit to Submer’s innovation centre in Barcelona on July 17, 2025. 

As part of the agreement, the MP government will support the project by helping with land allocation, approvals, and investment incentives.

On the other hand, Submer will offer expertise in design, training, and technical support to set up the facilities. The company’s solutions have already led to 600 GWh of electricity savings and saved over 3 billion liters of water worldwide.

“This MoU marks the beginning of a robust partnership that will catalyze local employment, skill development, and innovation while building scalable infrastructure for the AI era,” Sanjay Dubey,additional chief secretary of department of science and technology, GoMP  said.

Submer’s leadership team is expected to visit MP later this month to explore potential sites and meet with local partners.



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DAZN Opens India’s First Sports-Tech GCC in Hyderabad, Plans to Hire 3,000 by 2026

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DAZN, the world’s leading sports streaming platform, opened India’s first sports technology global capability centre (GCC) in Hyderabad on July 18, 2025 . The new centre will serve as DAZN’s largest global hub and is expected to create around 3,000 jobs by the end of 2026.

DAZN plans to invest ₹500 crores over the next three years to expand operations in Hyderabad. The centre will focus on developing advanced sports technology, using AI and real-time analytics, while also working with academic institutions for training, research, and job creation in Telangana.

Speaking at the launch, Telangana IT and Industries minister Duddila Sridhar Babu said that the move reflects DAZN’s trust in Telangana’s skilled talent, strong infrastructure, and supportive government.

He also emphasised the rapid growth of Hyderabad as a top destination for GCCs. “Nearly one new GCC is being added every week in the city,” he said.

Babu also spoke about the state’s broader growth plans, including expanding development to tier-2 and tier-3 cities. “Telangana is investing over $15 billion in infrastructure projects like AI City, sports city, EV mobility, and the regional ring road,” he said. 

DAZN has been growing rapidly in India since launching its centre of excellence in Hyderabad in 2023. In just two years, it has expanded to over 1,500 employees, including engineers, developers, and data scientists.
“Hyderabad has been a perfect destination for DAZN to grow its technology and product operations, thanks to the state government’s progressive policies, world-class infrastructure, and highly skilled talent pool,”Sandeep Tiku, DAZN’s CTO, said.



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Delta Air Lines to Expand Use of AI in Pricing This Year

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by Lacey Pfalz
Last updated: 8:50 AM ET, Sat July 19, 2025

Delta Air Lines is set to expand the use of artificial intelligence to determine airfare after testing a pilot program which used AI to set 3 percent of the airline’s airfare, but privacy advocates and government officials are concerned that it could lead to price hikes and discriminatory pricing. 

The airline was one of the first to consider using AI to determine airfare, a measure that was announced back in 2023 by the airline’s president, Glen Hauenstein. They’ve partnered with Israeli company Fetcherr to use AI to set prices.

According to Fortune, Hauenstein told investors during the latest financial call that Delta will expand the use of AI from setting 3 percent of ticket prices to 20 percent by the end of the year, with a goal of doing away with static pricing altogether. 

“This is a full reengineering of how we price and how we will be pricing in the future,” he said on the call. Eventually, he told investors, “we will have a price that’s available on that flight, on that time, to you, the individual.”

Yet what does that mean, exactly?

While Delta maintains that their fares are public and based on trip-related factors, travel websites have a history of changing fares based on factors like web browser or ZIP code.

The expansion of AI into determining fares, some critics say, could end fair pricing because travelers will never see a universal rate, only the rate that the AI algorithm predicts a traveler will pay based on a variety of factors about that specific traveler.  

“They are trying to see into people’s heads to see how much they’re willing to pay, Justin Kloczko, who analyzes so-called surveillance pricing for California nonprofit Consumer Watchdog told Fortune. “They are basically hacking our brains.”  

There are laws protecting consumers from being charged different rates based on their sex or ethnicity, but Consumer Watchdog and others warn that pricing could become predatory for people of different classes. 

Lawmakers are also taking note. Senator Ruben Gallego (D-AZ) tweeted this message about it on X on July 15: “Delta’s CEO just got caught bragging about using AI to find your pain point — meaning they’ll squeeze you for every penny. This isn’t fair pricing or competitive pricing. It’s predatory pricing. I won’t let them get away with this.” 

The integration of AI into businesses and travel brands has been a conversation topic that repeatedly returns to the issue of ethical implementation as worries about it replacing people’s jobs and stealing protected information becomes top of mind. 


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