New research shows a sharp increase in Australians utilising artificial intelligence (AI) to plan and book their holidays, with use particularly high among Boomers.
The findings, published in Adyen’s 2025 Hospitality and Travel Report, indicate that 28% of Australians now use AI to book holidays – an increase of 73% from the previous year. Notably, Boomer adoption of AI for travel planning has more than doubled, with usage up 106% year-on-year.
AI on the rise
The report suggests that AI is being embraced across multiple generations. Gen Z (49%) and Millennials (41%) remain the most active users for travel-related AI, while Boomers are catching up rapidly. Among Australians who use AI when booking travel, 71% said it delivers faster inspiration than any other method, and 60% of Boomers found it particularly helpful in navigating ad-heavy social media environments.
AI tools are now influencing each stage of the travel process, from suggesting destinations and planning itineraries to identifying last-minute deals. As consumer habits shift, hospitality and travel businesses must adapt to increasing expectations for speed, personalisation, and security in digital experiences.
Industry response
The hospitality sector is preparing for the impact of these changes. According to the report, 47% of hospitality businesses expect AI-powered search tools to reshape the industry in 2025 and beyond. The same percentage believe automation that personalises guest experiences will play a transformative role.
Hayley Fisher, Adyen’s Country Manager for Australia & New Zealand, commented on the trend, noting the expanding role of AI in the customer journey:
Across Australia, we’re seeing more hospitality businesses embedding AI across their digital platforms to personalise search, surface relevant experiences, and inspire faster bookings. But the real power of AI is unlocked when it enhances the checkout too – by tailoring payment options based on customer preferences, speeding up authentication, and spotting fraud before it impacts the guest. That’s what turns AI from a novelty into a competitive advantage.
This growing use of AI technology not only changes how trips are discovered and booked but also affects payment processes, from dynamic pricing and personalised offers to real-time fraud detection.
Security concerns
The increase in digital transactions has led to a marked rise in payment fraud attempts. The report states that 39% of accommodation providers globally have observed a significant increase in fraudulent activity over the past year.
Fisher emphasised the importance of balancing convenience with security:
With AI now central to travel planning, security can’t be an afterthought. Guests expect every interaction from discovery to payment to be effortless, but also secure. At Adyen, we help hospitality businesses strike that balance, using AI not just to personalise experiences but to prevent fraud in real time and protect what matters most – customer trust.
According to the report’s findings, 63% of merchants believe fragmented online and on-site payment systems are restricting their ability to deliver a connected guest experience, a challenge that grows as customer expectations for frictionless journeys increase.
Changing booking habits
Australians’ holiday-planning behaviour reflects a broader embrace of digital tools. AI’s ability to filter through vast amounts of content and adapt to user needs appears to be a key driver of its uptake among all age groups. For Boomers in particular, AI offers help in navigating a digital landscape often saturated with advertising and irrelevant options.
The shift towards AI-powered planning has led hospitality operators to focus increasingly on streamlining their digital operations, personalising interactions, and strengthening fraud protection.
The report is based on consumer and merchant research conducted by Censuswide across a range of international markets, with specific emphasis on Australian trends reflecting changing habits, expectations, and industry responses.
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