AI in Travel
AI and the Fear of Job Displacement: Why Smart Hotels Embrace Both Tech and Talent
By John Smallwood, President of Travel Outlook
July 2025
In the hospitality industry, few topics stir as much debate—and anxiety—as artificial intelligence. For some, AI conjures visions of front desks replaced by machines or once-warm guest experiences reduced to robotic exchanges. But the truth is far more nuanced.
At Travel Outlook, we believe that AI isn’t here to replace people; it’s here to empower them. In today’s hospitality landscape, tools like Annette, The Virtual Hotel Agent™, are helping hotels strike the ideal balance between cost efficiency and exceptional guest service.
The Real Goal: Smarter Service, Not Smaller Teams
With staffing shortages and rising operational costs reshaping how hotels operate, outsourcing services like call handling and reservations has become a necessity—not a luxury. But this isn’t about replacing jobs. It’s about allowing hotel staff to focus on what they do best: delivering high-touch, personalized guest experiences.
That’s where Travel Outlook comes in. As the premier hotel call center, Travel Outlook combines a highly trained reservations team with cutting-edge AI technology to support hotel operations and alleviate pressure on front desk staff. Our secret weapon? Annette, The Virtual Hotel Agent™ (Annette), is a guest-led conversational AI solution designed specifically for the hospitality industry.
| Annette doesn’t compete with human staff—she complements them. She answers frequently asked questions, handles multiple calls simultaneously, offers multilingual support, and transfers guests to the correct department when needed.
The result? Hotel staff regain valuable time to focus on in-person service, while guests receive faster, more accurate, and more satisfying support across all touchpoints. |
Debunking the Myth: AI Doesn’t Eliminate Hospitality Jobs
Fears around AI and job loss are understandable. But in hospitality, those fears are often misplaced. As guest demands evolve, many hotels are discovering that AI isn’t about cutting headcount—it’s about covering more ground with the same team. By automating repetitive tasks and call handling, Annette enables hoteliers to do more with less, particularly in today’s lean staffing environment.
Rather than replacing front desk agents, Annette acts as the first line of contact, handling routine inquiries—such as check-in times, pet policies, or local dining recommendations—with natural, human-like conversation. When a call needs a human touch, Annette transfers it seamlessly. This handoff isn’t a failure of AI—it’s a feature. It’s part of what makes Annette unique.
Better Guest Experiences Through AI-Human Synergy
According to McKinsey, 71% of consumers expect personalized service, and 76% become frustrated when they don’t receive it. In hospitality, that level of personalization can make or break a guest’s impression. But personalization isn’t just about using someone’s name in a confirmation email—it’s about understanding tone, urgency, and context.
This is where most AI falls short. Generic bots or IVR systems often provide cold, scripted replies that fail to capture the nuance of genuine service. Annette is different. She has been trained specifically for the hospitality industry, utilizing natural language processing and conversational AI developed by PolyAI. That means she doesn’t just answer questions—she holds conversations.
With multilingual capabilities, customizable voice talent, and hotel-specific knowledge, Annette delivers seamless, intuitive interactions that reflect your brand’s tone and standards. She can remember previous interactions, personalize responses, and escalate when necessary, ensuring that no guest feels like a ticket number in a support queue.
Proven to Perform: The Power of Integration
When paired with Travel Outlook’s expert reservations team, Annette becomes part of a larger system designed to increase revenue and guest satisfaction. Travel Outlook is the only hotel call center certified by the Kennedy Training Network and has proven to convert up to 70% of qualified reservation calls into revenue at higher ADRs. Our proprietary training, developed in partnership with Forbes, ensures that every call is handled with efficiency, hospitality, and expertise.
With Annette managing routine volume and Travel Outlook’s reservations team ready to close high-value calls, hotels enjoy the best of both worlds: the speed and availability of AI combined with the persuasive power of a trained sales professional.
A More Human Future, Powered by AI
It’s time to stop viewing AI as the end of hospitality jobs and start seeing it as the beginning of a new era; one where hotel teams can deliver even more personalized, emotionally intelligent service by offloading the tasks that slow them down. Guests, staff, and hotel operators all benefit. It’s not a zero-sum game. It’s a more innovative and sustainable way forward.
As the industry continues to evolve, solutions like Annette help hotels rise to meet new challenges without compromising on the heart of hospitality. Because, in the end, it’s not about man versus machine. It’s about how the two work together more effectively. And with the right hotel call center partner, like Travel Outlook, that future is already here.
For more information on how Travel Outlook and Annette, the Virtual Hotel Agent™ can transform your hotel’s operations, visit TravelOutlook.com/Annette today.
Looking for ways to address hiring and staffing challenges and control front desk labor expenses?
Learn more about Annette™, the leading conversational AI-powered,
virtual agent dedicated to hotel guest service.
| About John Smallwood, President of Travel Outlook
A veteran in the hospitality industry, John has owned, developed, and managed hotels for many years. After earning a BBA from New Mexico State University, he started his career with AT&T, gaining invaluable insight and experience in the early years of the data revolution. His experience in technology and hospitality merged in his development of Travel Outlook, the world-class hospitality contact center. More recently, he has branched out with the creation of Annette, the first AI-powered conversational AI assistant for the hotel industry. |
| About Travel Outlook, the premier hotel call center™
Travel Outlook is an innovative, custom off-site central reservations office (CRO) service that serves as either a primary or overflow reservations department for hotels. Travel Outlook utilizes industry-leading talent combined with hospitality-specific AI-powered technology (Annette, The Virtual Hotel Agent™) to enhance customers’ voice channels and increase conversion rates.
Given its progressive approach to the voice channel – in terms of performance, training, transparency, testing and the tools used to measure performance – Travel Outlook, the premier hotel call center™ is the leading voice reservations team in hospitality. Travel Outlook’s valued client list includes Viceroy Hotel Group, Curator Hotels and Resorts, Outrigger, KSL Resorts, Proper Hospitality Group, Atlantis, The Irvine Company, Sage Hospitality, Noble House Hotels, HEI Hotels, Pyramid Global, and many others. Travel Outlook’s team and approach increases sales conversion and helps to create more effective voice communication between hotels and their guests, resulting in improved social scores in addition to increased voice channel revenue. |
| About Annette, The Virtual Hotel Agent™
Annette is a guest-led conversational AI assistant designed specifically for the hospitality industry. Annette has been programmed using a breakthrough approach to conversational AI, using natural language understanding software built from human conversations. Using social media, chat forums, and movie dialogue, Annette learns from billions of casual human conversations to understand human inflections and multi-turn queries. This revolutionary approach means Annette understands callers no matter what they say, when they say it, or how they speak. Annette can answer FAQs specific to your property, understand multiple languages, route calls, send follow up texts, and more. For more information, visit https://traveloutlook.com/annette/ |
Learn more about Travel Outlook
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AI in Travel
How many Aussies are using AI to plan travel, who’s utilising it & what exactly are they using it for?
Nearly a third of Aussies are now using artificial intelligence (AI) to help plan their holidays, according to new research from Compare the Market.
In a survey of over 1,000 Australian adults, three in ten (28.8%) respondents said they relied on AI tools to lock in travel deals, scout destinations and find activities.
More than one in ten (11.5%) are specifically using AI for destination recommendations – the most popular use of AI in travel – while a similar number (10.3%) are seeking out deals.
Meanwhile, nearly one in ten (9.4%) look for recreational activities and accommodation, while one in 11 (9%) use AI to create itineraries, and nearly the same number (8.2%) search for flights and transport. A small percentage (3.2%) use AI to understand currency conversion.
“Australians love a good holiday and have never been afraid to ask for help when planning the perfect getaway,” Compare the Market’s Chris Ford says.
“Our latest data highlights a shift in the way travellers are approaching their planning, with convenience, personalisation and speed driving the adoption of innovative AI tools.”
When it comes to who’s using the technology, the survey reveals a clear generational divide.
The study found that, unsurprisingly, Gen Z and Millennials are the most likely to engage with AI when planning a trip.
On the other hand, the vast majority (93%) of Baby Boomers and three-quarters (76%) of Gen Xers said they’ve never used AI tools to help book a holiday.
Interestingly, Gen Z and Gen X lean on AI for destination recommendations, Millennials for recreational activities, and Baby Boomers primarily for accommodation.
Advice, but not an advisor
While AI adoption isn’t surprising, Ford cautions that it should be treated as a tool, not a travel agent – and travellers should always sense-check recommendations.
“It’s likely that travellers are using these tools in addition to chatting with travel agents, conducting desktop research or seeking ideas and inspiration from social media,” he notes.
Despite being a “great starting point” in the overall journey, Ford says that it’s important to “always ensure you’re crossing your ‘t’s and dotting your ‘I’s” when using AI.
“Many of these tools and services are still in their infancy stage and may not be 100% accurate, so do your own research to ensure you’re equipped with the right tools and information for your trip,” he states.
“The last thing we want to see is anyone getting themselves into a potentially dangerous or unsafe situation based on the recommendations from AI.”
With this in mind, Ford also reminds travellers not to overlook insurance.
“Travel insurance is designed to protect you against unexpected events when you’re travelling domestically or internationally and AI may not be forthcoming with these types of incidents,” he says.
“The type of cover offered by insurers can vary, but consider policies that cover scenarios for the kind of holiday you’re booking.”
Where AI “falls short”
Karryon Features Editor Gaya Avery says while AI handles bookings, great travel agents go further — acting as trusted advisors, curators and problem-solvers.
“They don’t just book travel – they shape it, tailoring experiences to each client’s needs. That’s where artificial intelligence falls short,” she said.
“Travel professionals provide value: personalised service, insider knowledge and human connections that AI simply can’t replicate.”
So does high AI uptake mark the death of the travel agent? Get Gaya’s take on the technology from earlier this year here.
- 91% of global respondents say they are excited about AI and 79% are familiar with the technology, though levels vary across regions.
- Despite widespread enthusiasm, only 6% fully trust AI and the majority (91%) have at least one concern about its implications.
- Only 12% of consumers are comfortable with AI making decisions independently, highlighting a clear boundary when it comes to fully handing over control to automation.
- 89% of consumers want to use AI in future travel planning, with AI assistants (24%) now considered a more trusted source than travel bloggers (19%) or social media influencers (14%).
AMSTERDAM – Today, Booking.com released The Global AI Sentiment Report, drawing on insights from over 37,000 consumers across 33 markets to explore how people are using, trusting, and responding to AI in everyday life and travel. As both the public and private sectors accelerate investments in AI, Booking.com, a leading digital travel platform that has integrated AI into its services for over a decade, is committed to shaping the future of travel technology in line with evolving consumer attitudes.
With excitement around AI at a peak and innovation increasing at rapid pace, Booking.com is harnessing this momentum to redefine how people search for, book, and experience travel, advancing its mission to make it easier for everyone to experience the world. The report reveals a nuanced picture: 91% of consumers express excitement about AI, 79% are familiar with the technology, and 89% want to use AI in their future travel plans. Yet, there are significant regional differences: while some embrace AI’s potential, others approach it with caution, underscoring the need for responsible implementation that balances opportunity with consumer trust. These new insights and perspectives will help shape the next chapter of AI in travel and beyond.
Sentiment Breakdown
Booking.com’s new research identified clear cohorts among global consumers, reflecting diverse AI sentiment: over one-third (36%) identify as AI Enthusiasts, intrigued by AI’s potential, while 13% are AI Advocates, actively championing its benefits and responsible adoption. This enthusiasm is grounded in the belief that AI will make life easier (69%), save time and effort (51%), enhance productivity (40%), and expand learning opportunities (48%).
However, this excitement coexists with significant caution. While 91% express enthusiasm for AI, an equal proportion report at least one concern about its broader implications. Approximately 13% classify themselves as AI Cautious, wary of AI’s development or use, and 9% as AI Skeptics. Notably, one in four respondents (25%) identify as AI Detractors, signaling a meaningful segment resistant to AI adoption.
Mapping the AI Mindset: Regional Variations
Significant regional differences emerge in consumer attitudes toward AI. Latin America (LATAM) leads globally in enthusiasm and familiarity, with 98% of respondents excited about AI and 89% understanding how it works. The Asia Pacific (APAC) region follows closely, showing the highest willingness to integrate AI into daily life-41% use AI for education and the same share for transport.
North America (NORAM) and Europe & Middle East (EME), on the other hand, emerge as skeptical strongholds, approaching AI with more caution and distrust. Globally, while 77% have at least some trust in AI, nearly a quarter (23%) rarely or never trust information generated by it- with distrust highest in these two regions (32% in NORAM and 29% in EME). Consumers here are also more likely to fact-check AI outputs, highlighting a broader demand for transparency and reassurance as adoption grows.
Assistance Over Autonomy
AI has become deeply integrated into daily life, with 98% using AI-powered search, 86% using streaming recommendations, and 77% engaging with generative AI tools. Yet, the lack of a human touch generates doubts with 35% finding AI impersonal, and the majority double-checking AI outputs even when they trust the technology: 42% always fact-check, and 29% do so sometimes. Only 6% of consumers fully trust AI.
This hesitation creates a clear boundary: most people are not ready to cede full decision-making to AI. Just 12% feel comfortable with AI making decisions independently, while 25% remain unsure, and 10% feel very uncomfortable, refusing to trust AI without human approval. The greatest opportunity lies in positioning AI as a supportive tool that enhances, rather than replaces, human judgment.
AI’s Advancing Role in Travel
AI is rapidly becoming a core part of the travel experience, with 65% of consumers expecting autonomous trip planning to go mainstream in the near future. Two in three (67%) have already used AI in some aspect of travel, and of those, nearly all have turned to it for planning or booking (98%) or while already on a trip (96%). This reflects both the growing reliance on AI-powered tools and travelers’ openness to technology that enhances their journeys.
When planning a trip, travelers most often use AI to research destinations and the best time to visit (38%), find local experiences or cultural activities (37%), and get restaurant recommendations (36%). Notably, today, AI assistants are emerging as a more trusted source for planning travel (24%) than colleagues (19%) or influencers (14%).
Once in-trip, AI tools are most commonly used for translation capabilities (45%), in-destination activity suggestions (44%), restaurant recommendations (40%), and navigating unfamiliar locations or transport systems (40%). After returning home, the top AI use case is photo editing, cited by 38% of respondents.
Beyond making travel easier and more efficient, a benefit 66% of travelers recognize, there is also a strong desire for AI to serve as a force for good. The majority (71%) appreciate AI-generated recommendations that help them avoid overcrowded destinations or peak travel times. Travelers are increasingly mindful of community impact, with 60% wanting AI to highlight experiences that positively benefit the local places they visit.
Generative AI represents one of the most significant technological shifts of our era, fundamentally reshaping how consumers engage with the world around them. As this technology matures, it’s not only transforming how companies like ours anticipate and meet evolving customer needs, it’s also raising the bar for what travelers expect from every interaction.
The opportunity ahead is tremendous. At Booking.com, we’ve long been at the forefront of AI innovation, integrating advanced machine learning to enhance the customer journey at every touchpoint. But as we enter this next phase, our responsibility goes beyond technology. Building trust, ensuring transparency, and prioritizing safety are critical as we guide travelers, and our industry, into the future.
James Waters, Chief Business Officer at Booking.com
Booking.com’s The Global AI Sentiment Report can be accessed here.
Methodology:
This global quantitative research study was conducted via an online questionnaire between April and May 2025, gathering responses from 37,325 people across 33 markets. Argentina: 1012, Australia: 1013, Austria: 500, Belgium: 1000, Brazil: 2006, Canada: 1007, China: 2018, Colombia: 1023, Croatia: 509, Denmark: 508, France: 2031, Germany: 2033, Hong Kong: 1006, India: 2004, Ireland: 504, Israel: 505, Italy: 1000, Japan: 1029, Mexico: 2014, Netherlands: 1008, New Zealand: 1015, Portugal: 1013, Singapore: 1002, South Korea: 1006, Spain: 1006, Sweden: 502, Switzerland: 501, Taiwan: 1022, Thailand: 1002, UAE: 513, UK: 2005, USA: 2004, Vietnam: 1004. As a leading digital travel platform exploring the role of AI, Booking.com conducted this study to better understand how people around the world are using, trusting, and responding to AI in both everyday life and travel.
About Booking.com
Part of Booking Holdings Inc. (NASDAQ: BKNG), Booking.com’s mission is to make it easier for everyone to experience the world. By investing in the technology that helps take the friction out of travel, Booking.com’s marketplace seamlessly connects millions of travelers with memorable experiences every day. For more information, follow @bookingcom on social media or visit globalnews.booking.com. For more information, follow @bookingcom on social media or visit globalnews.booking.com.
Press Office Booking.com
+31 20 709 4743
Booking.com
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