AI in Travel
Booking.com bullish on AI’s role in travel search
Claiming AI has not negatively affected search performance, Booking.com’s CFO sees strong potential to diversify traffic sources.
Booking.com executives are optimistic about the role of generative AI in reshaping how travellers search and plan trips, with large language models (LLMs) being considered as a way to diversify traffic sources.
Speaking to investors as parent company Booking Holdings reported its Q2 results overnight (29 July), CEO Glenn Fogel said LLMs are becoming a key part of how people find travel inspiration and information.
“We know there are hundreds of millions of people who are using different LLMs right now to do all sorts of research and ask questions,” he said. “One of the ones that people are looking at a lot is inspiration for travel, how to do their travel better or where they should go.”
Booking.com executives are optimistic about the role of generative AI in reshaping how travellers search and plan trips, with large language models (LLMs) being considered as a way to diversify traffic sources.
Speaking to investors as parent company Booking Holdings reported its Q2 results overnight (29 July), CEO Glenn Fogel said LLMs are becoming a key part of how people find travel inspiration and information.
“We know there are hundreds of millions of people who are using different LLMs right now to do all sorts of research and ask questions,” he said. “One of the ones that people are looking at a lot is inspiration for travel, how to do their travel better or where they should go.”
CFO Ewout Lucien Steenbergen claimed LLMs have not negatively impacted search results so far and expressed confidence in their longer-term potential to expand customer acquisition channels.
He noted that around 60% of Booking.com’s traffic currently comes through direct channels, up from a year ago. While it is “too early” to quantify the impact of LLMs on lead generation, both direct traffic and Google-sourced traffic continue to grow.
“If you look at the performance marketing channels, it’s – to some extent – interesting that the Google clicks continue to hold up quite well,” he said. “They’re still growing for accommodation, slightly still period-over-period. So we don’t see yet a decline in that.”
The comments come as Google introduced AI mode in the UK yesterday (29 July), which allows users to ask nuanced questions that would have previously required multiple searches. AI mode has been live in the US since March.
Fogel also hinted that the company is working on a proprietary “travel model”, though gave no details or timeline.
“We’re continuing to learn and experiment finding new modern channels that travellers are using to get inspired for travel,” he said. “We are trying to expand to learn, and the more channels we can use, the better it is for the company in the future.”
Booking.com is one of the key partners for ChatGPT’s Agent Mode, which combines OpenAI’s GPT models with Booking.com’s proprietary data on properties, pricing and availability to power its AI Trip Planner.
Fogel pointed to some ways the company is already using AI, including reducing live agent contact rates, speeding up customer service responses and improving customer satisfaction through voice-enabled generative AI agents.
“It’s great that we have the scale to be able to take advantage of this, having the people, having the capital, having the AI engineers. This is one of the benefits of being a global giant that you can take advantage of these new things,” he added.
Steenbergen also pointed to a broader shift in the company’s marketing strategy. Social media spend rose 25% year-on-year in the quarter. Booking.com is now working to expand its performance marketing channels, but didn’t specify which ones.
“We continue to engage with social media platforms as traveller search patterns and travel discovery methods evolve, particularly at the inspiration stage of the travel funnel,” he added.
Last quarter, the company began shifting focus from brand marketing to social media investment.
For the three months ending 30 June, revenue rose 16% to $6.8bn (£5.1bn), while marketing spend increased 10% year-on-year. Room nights booked rose 8% year-on-year to 309 million.
“Marketing expense as a percentage of gross bookings was a source of leverage compared to the second quarter of 2024, driven by lower brand marketing expenses as well as higher direct mix partially offset by increased spend in social media channels at attractive incremental ROIs,” Fogel added.
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.
AI in Travel
Tourism New Zealand Pioneers Future of Travel with AI-Powered Minecraft Destination – What You Need to Know
Sunday, August 3, 2025
Tourism New Zealand has taken a bold step into the future of travel by combining artificial intelligence (AI) and gaming to transform how people plan their trips. In a groundbreaking initiative, New Zealand has become the world’s first fully playable country within Minecraft, marking a major shift in destination marketing. This AI-powered Minecraft destination merges the growing popularity of gaming with travel, offering a digital experience that inspires real-world visits.
AI-Powered Trip Planner
In partnership with GuideGeek, an AI-powered travel assistant, Tourism New Zealand has integrated an intuitive trip planner directly into its website, newzealand.com. This AI assistant is designed to break down the common barriers to travel planning, providing answers to common questions such as “How long is the flight to New Zealand?” or “What are the best activities to do in each season?” It offers personalized suggestions based on user preferences, helping travelers plan their journeys with ease.
The AI platform is driven by a massive database of tourism data from regional organizations and local operators, ensuring that every response is accurate and tailored. This technology not only simplifies the planning process but also encourages deeper interaction with the destination, moving beyond simple queries to a more personalized experience. By leveraging GuideGeek, Tourism New Zealand offers a travel planning tool that is intuitive, data-driven and highly effective.
A Virtual New Zealand in Minecraft
A core component of this campaign is the launch of Aotearoa New Zealand DLC within Minecraft. In collaboration with Mojang Studios and other local partners, Tourism New Zealand has transformed the country’s iconic landscapes into a fully interactive, digital version within the game. Landmarks such as the Waitomo Caves and Abel Tasman National Park can now be explored virtually by players worldwide.
This initiative was launched alongside the release of A Minecraft Movie, amplifying the excitement and engagement around the digital New Zealand. Players can virtually paddle a traditional Māori waka or explore the famous glowworm caves, experiencing New Zealand’s natural wonders and culture in a way that was never possible before. This immersive virtual experience is designed to captivate users, sparking curiosity about the real-world destinations that these locations represent.
Driving Real-World Travel
The integration of AI and Minecraft has proven to be a successful formula in engaging potential travelers. Since its launch, the AI trip planner has been used by over 200,000 unique visitors, with those interacting with the platform showing a 600% higher engagement rate compared to average users. This indicates a growing interest in using AI tools to enhance travel planning.
The Minecraft integration has also brought significant attention to New Zealand, with over 50,000 active users continuing to explore the digital destination. This engagement not only strengthens the appeal of New Zealand as a travel destination but also demonstrates the effectiveness of blending gaming with tourism marketing.
Looking to the Future of Travel
Tourism New Zealand is setting the standard for the future of travel. This AI-powered Minecraft experience demonstrates how gaming and artificial intelligence can be used creatively to attract and engage travelers. By leveraging these technologies, New Zealand is not only offering a unique way for potential visitors to explore the country virtually, but also inspiring them to experience it in person.
As the travel industry continues to evolve, the use of AI and gaming is likely to become an integral part of tourism marketing strategies worldwide. Tourism New Zealand’s initiative showcases the potential for innovation in the travel industry, positioning the country as a leader in the future of travel.
AI in Travel
Tourism Malaysia And HONOR Malaysia Collaborate To Promote Visit Malaysia 2026 Through AI Technology
Saturday, August 2, 2025
Tourism Malaysia has teamed up with HONOR Technology (Malaysia) to change how the country promotes tourism. Through a Memorandum of Collaboration (MoC), both organizations will use new technology, specifically AI-driven digital storytelling, to improve Malaysia’s visibility in global tourism. This partnership aims to increase Malaysia’s presence in the international tourism market, especially ahead of the upcoming Visit Malaysia 2026 (VM2026) campaign.
A Game-Changing Collaboration
The partnership between Tourism Malaysia and HONOR Malaysia marks a significant shift in the tourism industry’s approach to promotional strategies. As the tourism sector increasingly embraces technological advancements, this collaboration is a prime example of how innovation can be leveraged to meet modern demands. Both organizations are committed to utilizing AI-powered technology to create engaging, interactive, and visually stunning content that will appeal to a broad audience, particularly the younger, digitally savvy generation.
Through the use of HONOR’s advanced AI-powered mobile technology, the partnership will deliver a series of creative initiatives designed to engage local and international audiences. The aim is to connect with travelers in a more dynamic, personal way, leveraging AI to produce content that is not only visually striking but also reflective of the diverse cultural and scenic beauty of Malaysia.
Key Initiatives Under the Partnership
The collaboration will kick off with a series of interactive campaigns designed to bring Malaysia’s most iconic tourist attractions to the forefront. One of the standout features of the partnership is a nationwide photography competition that will invite both local and international participants to capture Malaysia’s stunning landscapes and cultural landmarks. HONOR’s AI-enhanced smartphones will be the primary tool for participants, enabling them to capture high-quality images that showcase the country’s rich diversity.
In addition to the photography competition, the initiative will include guided photo tours at major tourist spots across Malaysia, giving travelers the opportunity to explore the country’s beauty through the lens of a professional photographer. These tours will provide participants with valuable insights into the history, culture, and natural wonders of Malaysia, helping to foster a deeper connection to the country.
Another highlight of the collaboration will be creative workshops, where industry experts will guide participants through the process of creating compelling travel content. These workshops will provide attendees with the skills they need to produce high-quality digital content, from photography to video production, all while highlighting Malaysia’s attractions. The workshops will also serve as a platform for cultural exchange, allowing local and international participants to share their experiences and ideas.
Furthermore, the collaboration will feature art exhibitions showcasing AI-enhanced visuals captured using HONOR smartphones. These exhibitions will offer a new perspective on Malaysia’s tourism offerings, blending technology with art to create visually captivating displays. The exhibitions will serve as both a celebration of Malaysia’s cultural heritage and a forward-thinking approach to tourism marketing.
The Role of AI and Mobile Technology
HONOR Malaysia’s role in this collaboration is crucial, as the company’s mobile technology and AI capabilities will be integral to curating visually compelling content. By utilizing AI-powered features such as scene recognition and photo enhancement, the smartphones will enable users to create professional-quality images with ease. This approach not only highlights the beauty of Malaysia but also encourages travelers to explore the country’s destinations in a more immersive way.
Tourism Malaysia’s involvement in the partnership focuses on facilitating access to the country’s top tourist attractions, providing logistical support, and amplifying the campaign’s reach through its extensive global tourism network. The government agency has long been at the forefront of efforts to promote Malaysia as a top tourist destination, and this collaboration with HONOR represents a new chapter in the country’s tourism marketing strategy.
Embracing Innovation to Appeal to Global Audiences
As Malaysia prepares for the Visit Malaysia 2026 campaign, the collaboration between Tourism Malaysia and HONOR Malaysia is a timely step towards modernizing the country’s approach to tourism promotion. By embracing AI and mobile creativity, the initiative aims to engage younger, tech-savvy travelers who are increasingly seeking interactive and personalized travel experiences. The partnership also aligns with global marketing trends, as more and more brands leverage digital platforms and emerging technologies to connect with consumers.
This collaboration is a significant move in ensuring that Malaysia’s tourism industry remains competitive in the global market. By focusing on user-generated content and encouraging creativity, the campaign aims to not only promote Malaysia’s scenic beauty and cultural richness but also foster emotional and visual connections with travelers worldwide. The campaign’s use of AI and technology ensures that Malaysia’s tourism offerings are showcased in a modern, dynamic light, capturing the attention of audiences across the globe.
Strengthening Public-Private Partnerships for Tourism Growth
The collaboration between Tourism Malaysia and HONOR Malaysia exemplifies the power of public-private partnerships in driving tourism growth. By combining the expertise and resources of both organizations, the partnership is poised to make a significant impact on Malaysia’s tourism sector. This MoC is also a testament to the growing recognition of the importance of innovation and technology in shaping the future of travel marketing.
As the Visit Malaysia 2026 campaign approaches, the collaboration is set to serve as a benchmark for how technology can be integrated into tourism promotion. The initiative will not only help boost Malaysia’s visibility in the global tourism market but also inspire other nations to embrace technology as a means of enhancing their tourism offerings. By blending tradition with innovation, Tourism Malaysia and HONOR Malaysia are setting a new standard for the future of travel marketing.
A Groundbreaking Step
In conclusion, the partnership between Tourism Malaysia and HONOR Malaysia is a significant move toward changing how tourism is promoted in the digital age. By using AI-driven digital storytelling and mobile technology, the collaboration seeks to improve Malaysia’s presence in global tourism and involve both local and international audiences in engaging and creative ways. As the Visit Malaysia 2026 campaign approaches, this partnership represents the changing connection between technology and tourism, paving the way for a more immersive and interactive travel experience for everyone.
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