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AI in Travel

Here’s Their Wishlist for Making It Better

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China’s travel agencies are embracing artificial intelligence at a rapid pace, but not without reservations.

A new Dragon Trail Research survey of 280 outbound travel agents, releasing Wednesday, shows that 82% of respondents already use AI in their daily operations. But many say the tools still lack the precision and nuance needed to fully meet expectations.

Agents said they mostly rely on AI for itinerary planning, translation, content suggestions, virtual travel assistants, and customer service. AI is also being used to manage bookings and customer data. Tasks like translating menus or suggesting local transport options are helping staff focus on what travelers increasingly demand: personalized service.

Where AI Still Misses the Mark

Despite its widespread use, agents point to several areas where AI falls short. Translation tools, for instance, often misinterpret dialects or fail to capture tone and context. That can be a problem when communicating nuanced travel information.

“It would be even better if the system could intelligently tag and tally every place a guest has already visited, then automatically filter those out when making new recommendations – no repeats, just fresh ideas,” one agent said in the report.

Itinerary planners, another popular use case, are seen as too rigid. Agents said they want more weather-aware suggestions and itinerary recommendations that are tailored, not just cookie-cutter templates.

For the 18% of agencies that haven’t yet adopted AI, the hesitation is tied to functionality. Over half of non-users said they want better translation and more intelligent customer service tools before making the leap. Many are waiting for the technology to mature before committing.

Source: Dragon Trail Research

Outbound Travel Rebounds, Cautiously

The report also provides a pulse check on China’s outbound travel market, which continues its slow rebound following the pandemic.

More than 60% of agents said business so far in 2025 has improved compared to last year. But the optimism is tempered as 17% reported that conditions have become more difficult. The reasons? Economic instability, global conflicts, and a widening gap between traveler demands and what smaller agencies can deliver.

A noticeable trend this year is the increased focus on older travelers. In the July survey, 23% of agents said they were selling to the senior market, up from 14% in January.

While East Asia and Western Europe are the top two sub-regions with the most travel agencies selling tours and the best sales performance, Central Asia and some lesser-known South American countries are drawing attention for those seeking something different.

Source: Dragon Trail Research

Europe Is a Top Seller, But Engagement Lags

Interest in European travel is clearly growing. Agents now rank Western Europe just behind East Asia for both product availability and sales performance. France, the UK, Switzerland, Iceland, and Italy are seen as offering the most potential.

Yet, the marketing doesn’t always match the interest. Only 35% of surveyed agents said they had attended any promotional events for European destinations in the past two years, and all of those were for Western European countries.

Agents are asking for more support. They want up-to-date materials on cultural and historical attractions, safety, transportation, and local customs. Since Chinese tourists tend to visit multiple countries on one trip, multi-country itineraries are in higher demand than single-country ones.

The clients traveling to Europe are younger, mostly those born in the 1990s and 2000s. Couples and families with mid-range budgets dominate, and most want customized or independent travel options rather than group tours.

Personalization Isn’t a Bonus, It’s Expected

The most defining shift in China’s outbound travel market is the demand for personalization. The era of one-size-fits-all travel is over.

Agents say travelers now want experience-driven, customized trips. Study tours, themed itineraries, and off-the-beaten-path destinations are viewed as growth areas.

But this is putting a strain on smaller agencies, which may lack the tools or staff to keep up with such fragmented preferences.

The trend toward personalization is most visible in the types of travel being sold.

Small group tours, typically for 10 to 20 people, have become the most commonly sold and best-performing product. Family travel and high-end customized packages are also strong sellers. Gen-Z and affluent travelers, in particular, are driving this shift toward tailor-made experiences.



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AI in Travel

Talking to me takes the stress out of trip planning.

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BarcelonaLayla has been planning trips since 2024. To talk, you don’t need to visit an agency, make a phone call, or observe any time restrictions: any device with an internet connection is sufficient to reach her. Layla presents herself with the self-confidence characteristic of job interviews: “Talking to me takes the stress out of planning trips,” “talking to me is like having your own travel guru without the high price.” But Layla isn’t just any worker: she’s an artificial intelligence (AI).

The world of travel is no stranger to the AI technological revolution, and not only because of the use companies like Iberia have made of it to achieve more sustainable and efficient flights. AI has already been incorporated into an experience that many people experience with anguish: planning summer trips. Whether through an agency or in pajamas at home, planning involves making a long list of decisions that aren’t always easy and that often require speed inversely proportional to the amount of money available. Now it seems that AI has decided that the only decision to make is which of the many existing applications—ChatGPT, Gemini, Grok, Guidegeek, or Layla, among others—we want to use.

The appearance of layla.ai It’s similar to a WhatsApp chat. All you have to do is write your trip idea in the box and click the send button to receive a proposal. For example: “Plan a trip with friends.” Or better yet: “Plan a trip with friends for the weekend of August 30th-31st. We’re five people, between the ages of 24 and 29. We live in Barcelona and have a car available. We want to go to the beach and have a party without disturbing anyone. Maximum budget: €150 per person for the entire trip.”

Users of these technologies often face a dilemma: the more information they provide, the better answers they receive, but in exchange they offer details of their lives to companies that, in some cases, will use this data to train their systems. “The approach I would follow is to provide the minimum amount of personal information,” recommends Josep Curto, an artificial intelligence specialist and professor at the UOC. “But if we want more detailed information, there are applications, such as ChatGPT, that offer the ability to log in and delete chats. This way, we can reap the benefits while protecting our privacy.”

Layla’s response to the request takes just a few seconds to arrive: after asking a couple of questions to clarify our wishes (like the Costa Brava or Costa Dorada, a rural house or a campsite), Layla makes a suggestion. “This trip to the Costa Brava combines the beach, a party at a rural house with a pool, and a tight budget, all just a couple of hours’ drive from Barcelona.” And that’s when the paywall appears. But they offer a three-day free trial, which ARA has taken advantage of.

Layla has listed ten accommodations in various locations on the Costa Brava, the first of which has a “match” With our “90%” plan: a pool, two double beds, a sofa bed, and a terrace, it recommends a beach, a restaurant for dinner, and a bar for breakfast that fit your budget. The app also provides a link to Booking.com to pay for the apartment, and the option to send (with a fee) the plan in PDF format to friends.

But young people earning the minimum wage aren’t Layla’s typical customers. “Our most frequent users are middle- or upper-middle-class families who want to travel to several cities,” explains Saad Saeed, CEO and co-founder of Layla. “Younger people are more spontaneous and flexible. It’s different when we’re talking about a mother with three children. That’s where the complexity begins and where we seek maximum planning.” Saeed denies that companies like his, and AI in general, have come to supplant humans. “Personal validation is still important. We all take into account the recommendations made by family and friends.”

“Tourism is the most human economic sector,” says Natalia Bayona, Executive Director of the World Tourism Organization (UNWTO). Among Africans, tourism currently accounts for 1% of global investment in artificial intelligence, which is expected to reach $360 billion by the end of 2025. “Artificial intelligence can generate greater efficiency: better management of traveler flows, greater personalization of offers, immediate translations for guides…”

Likewise, the UNWTO believes it is necessary to regulate its use to prevent malpractice. This is not only to prevent the improper handling of user data, but also the illegitimate use of celebrities for sponsorship or the creation of images that do not correspond to reality.

A common concern is how algorithms will affect geographies already strained by tourism. “If AI only gives visibility to popular destinations, leaving aside lesser-known but high-value offerings, it could reinforce territorial inequalities,” warns Ainhoa Carballido, director of the Master’s in Tourism Business Management at the CETT Barcelona School of Tourism, Hospitality, and Gastronomy – University of Barcelona. She also emphasizes the benefits it could bring, especially in a “mature destination” like Catalonia: “Predictive systems can help avoid overcrowding in specific locations or adapt tourism promotion to emerging demand, with a more sustainable and efficient approach.”

The fact that Layla sent us to the Costa Brava doesn’t mean the company ignores the problem of overcrowding. “Overtourism is a problem,” says Layla’s co-founder. Saeed argues that AI could facilitate the creation of a system that shows each city’s tourist capacity and its current status before booking. “If tourists received a notification alerting them that the city they want to visit is at 90% capacity, but the city next door, which is also fantastic, is only at 30%, many would change their destination.” He assures that they are working with several governments, including the Spanish government, to find solutions.

However, we must remember that artificial intelligence makes mistakes. Layla has assured us that the restaurant she recommends, in Llafranc, is “close” to Cala Montgó, an hour’s drive away, and it is not uncommon for it to send users to visit buildings and museums undergoing renovations. “These systems are designed to provide answers,” recalls Curto, the AI specialist. “They respond based on the pattern they detect in the data. Since the renovations aren’t part of a strong pattern, the system doesn’t identify it.” The solution, according to Curto, is simple. “Common sense. Don’t believe that, because it responded correctly once, there’s no need to validate the information anymore. Always check the original source. And, as with everything in life, do something like Dr. House: don’t believe anything by default.”



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AI in Travel

Delta rejects AI pricing under political heat

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Major Carrier Commits to Fair Pricing Amid Growing Congressional Scrutiny

Delta Air Lines has taken a definitive stance against artificial intelligence-powered personalized ticket pricing, responding to mounting pressure from federal lawmakers and widespread consumer anxiety about algorithmic discrimination in air travel costs.

The Atlanta-based carrier’s position emerged following sharp criticism from prominent Democratic senators who questioned whether the airline planned to use AI technology to extract maximum revenue from individual passengers based on their personal financial profiles.


Congressional Pushback Intensifies

Democratic Senators Ruben Gallego of Arizona, Mark Warner of Virginia, and Richard Blumenthal of Connecticut spearheaded the legislative challenge, arguing that AI-driven individualized pricing could exploit travelers by calibrating fares to their perceived ability to pay premium rates.

The senators’ concerns centered on algorithmic pricing systems that could analyze personal data — from browsing history to demographic information — to determine how much each customer might be willing to spend on airfare.

Delta’s response was unequivocal. The airline categorically denied any intention to implement pricing algorithms that target individual consumers with customized rates based on personal information. This commitment represents a significant policy declaration in an industry increasingly embracing artificial intelligence across operations.

Technology Integration Without Personalization

While rejecting personalized AI pricing, Delta plans substantial technological advancement through its partnership with Fetcherr, an AI pricing specialist. The collaboration aims to deploy AI-based revenue management systems across 20 percent of the carrier’s domestic route network by late 2025.

The distinction Delta emphasizes lies in data aggregation versus individual targeting. The airline maintains its pricing algorithms will analyze broad market trends, competitive landscapes, and general demand patterns rather than personal consumer profiles.

This approach reflects traditional airline revenue management practices that have utilized dynamic pricing for three decades, adjusting fares based on factors like seasonal demand, fuel costs, and competitive positioning.

Industry-Wide Ethical Concerns

American Airlines Chief Executive Robert Isom echoed Delta’s position, stating that AI-driven personalized pricing could fundamentally undermine passenger trust in airline fairness. His comments suggest growing industry recognition that aggressive algorithmic pricing could trigger regulatory backlash and consumer boycotts.

The airline industry’s cautious approach contrasts sharply with retail sectors where personalized pricing has become increasingly common, particularly in e-commerce platforms that adjust prices based on user behavior and demographics.

Legislative Response Takes Shape

Representatives Greg Casar of Texas and Rashida Tlaib of Michigan have introduced federal legislation specifically targeting AI pricing discrimination. Their proposed bill would prohibit companies from using artificial intelligence to set individualized prices or wages based on sensitive personal data.

The legislation addresses scenarios where algorithms might exploit vulnerable moments, such as raising travel prices for individuals searching for family funeral information or medical emergency travel.

A Federal Trade Commission report released in January documented widespread retail use of personal information for price customization, highlighting consumer vulnerability to algorithmic manipulation across multiple industries.

Market Dynamics and Consumer Protection

Delta‘s commitment comes as airlines face unprecedented scrutiny over pricing transparency and fairness. The carrier emphasized that its pricing philosophy will continue reflecting market-wide factors rather than individual consumer analysis.

The airline industry’s embrace of artificial intelligence spans multiple operational areas, from route optimization to customer service automation. However, pricing applications have generated the most significant regulatory and public relations challenges.

Senator Gallego acknowledged Delta’s commitment while pressing for greater transparency about data collection practices and pricing methodologies. His comments highlighted ongoing congressional interest in monitoring airline compliance with anti-discrimination principles.

The debate reflects broader societal tensions about artificial intelligence applications in consumer-facing industries, particularly where algorithmic decisions could exacerbate economic inequality or exploit personal circumstances.

Delta’s proactive stance may influence competitor policies and establish industry standards for ethical AI implementation, potentially preventing more restrictive federal regulations while maintaining consumer confidence in airline pricing fairness.





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AI in Travel

India Emerges as a Leader in AI Adoption and Travel Enhancement, ETTravelWorld

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India among most AI-positive nations, says Booking.com’s Global AI Sentiment Report

Indian travellers are embracing AI like never before. According to Booking.com’s Global AI Sentiment Report, Indian consumers are among the most positive globally towards artificial intelligence, with 99 per cent expressing excitement, 98 per cent open to using AI in travel, and 96 per cent familiar with the technology.

However, while enthusiasm runs high, trust in full AI autonomy lags. Only 16 per cent of Indian travellers fully trust AI, and just 12 per cent are comfortable with AI making independent travel decisions without human input. The majority see AI as a powerful assistant—not a replacement—for human judgment.

Generative AI represents one of the most significant technological shifts of our era,” said Santosh Kumar, Regional Manager, South Asia, at Booking.com. “In India, people are not just curious — they’re actively using AI to shape better travel experiences. The opportunity is enormous, but so is our responsibility to guide travellers with trust and transparency.”

Key India-Specific Insights from the Report:

Top travel AI uses: researching destinations (53 per cent ), finding local experiences (44 per cent ), and getting restaurant recommendations (42 per cent )

– In-trip AI use: translation (55 per cent ), local suggestions (52 per cent ), navigating transport (41 per cent )

– Post-trip AI use: photo editing (51 per cent )

– 45 per cent trust AI assistants more than travel bloggers (36 per cent ) or social media influencers (31 per cent )

– 87 per cent already use AI for some aspect of travel

– 82 per cent value AI tools that reduce crowding and overtourism

Despite this uptake, 92 per cent of Indian respondents still express at least one concern around AI, particularly its impersonal nature and the need for verification: 32 per cent always fact-check AI results, and 38 per cent find it lacks the human touch.

The report categorizes Indian AI sentiment into groups:

– 46 per cent – AI Enthusiasts

-28 per cent – AI Advocates

– 10 per cent – AI Detractors

– 5 per cent – AI Cautious

– 4 per cent – AI Skeptics

Globally, APAC ranks among the most AI-friendly regions, while North America and Europe exhibit more skepticism and demand for transparency.

Bottom Line:
India is leading the charge into AI-powered travel, driven by curiosity, convenience, and a willingness to experiment—but travellers still want human validation. Booking.com is building on this momentum to make AI a more transparent, empowering tool for the next generation of global explorers.

  • Published On Aug 3, 2025 at 02:30 PM IST

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