Leisure travelers worldwide are increasingly turning to social media and artificial intelligence (AI)-powered sites, with use particularly prevalent in emerging markets, according to research from global consulting firm BCG.
The study included responses from approximately 5,000 travelers across Australia, China, India, Indonesia, Germany, Mexico, Nigeria, Saudi Arabia, the United Kingdom, the United States and Vietnam—all countries with populations that travel frequently or are expected to do so in the future. The company also analyzed travel patterns from 2014 through 2024 across 68 countries and developed forecast data through 2040.
The report highlighted opportunities in the expanding leisure travel sector, stressing the need for those in the industry to embrace AI. According to survey findings, leisure travel is expected to triple—from $5 trillion to $15 trillion—by 2040, with more of the “next wave” of travelers coming from emerging markets such as China, India, Saudi Arabia, and Vietnam, as opposed to more traditional destinations like Germany, the U.K. and the U.S.
Travelers from emerging markets are actively embracing technology, logging the most browsing touchpoints, per BCG’s findings. At the same time, however, they were the most likely to report experiencing information overload.
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And while AI and large language models (LLMs) are only expected to become more integral to travel planning, especially with the rise of agentic AI, human interaction is still key to the overall travel planning experience.
Illustrating this, China (65%), India (59%), Vietnam (51%) and Indonesia (58%) had the highest percentages of travelers using AI-powered tools or chatbots in travel planning, but they were also among those with the highest percentage of travelers who said human touch is still important.
“Smart integration and handoffs between technology and the human touch will best meet travelers’ needs. Winning platforms will combine AI-powered simplicity with personalization, cultural relevance, and hybrid engagement,” the report reads.
According to Mike Coletta, senior manager of research and innovation at Phocuswright, BCG’s data is in line with Phocuswright’s findings—and the intersection of human interaction and AI is an area of interest.
“I found the correlations between the higher numbers of travelers relying on both AI and humans for travel planning in APAC countries particularly thought provoking,” Coletta said.
“The balance between digital interactions and the human touch is something Phocuswright will continue to explore with the overarching goal of shedding light on the evolution of how discovery translates into bookings for travelers globally.”
Generative AI
Phocuswright’s “Chat, Plan, Book: GenAI Goes Mainstream” report found that generative AI, specifically, is becoming more common for trip planning, with leisure travelers from the U.S., the U.K., France and Germany reporting a three- to four-point increase in usage.
Additionally, Phocuswright looked at how much confidence travelers have in new tech, with only one-third of respondents reporting that they “fully trust answers” from generative AI tools. However, between 25% and 37% still expect travel sites to offer generative AI chat options, while a third to a quarter of travelers are interested in booking within one of these platforms or letting an AI assistant book for them.
Considering its survey results, BCG predicted that generative AI could actually “pose an existential threat to travel companies” by “bypassing traditional aggregators” and directing users to relevant offers.
“The pace of change remains uncertain, but companies should begin adapting,” the report reads.
How travel companies can adjust
With increased use of tech-enabled platforms and channels, BCG said personalization and flexibility will be paramount.
“Companies should make sure that travelers seeking information and booking opportunities through AI-powered channels can discover their companies and book with them,” the report reads.
“They should ensure that they can be found via LLM search, watch out for LLMs that might be entering their business space and start investing in their own AI chatbots. These bots should be able to communicate with travelers and help them easily book trips right at the travel company’s site to improve the user experience and at social media sites to attract and convert new customers.”
When it comes to destination marketing, BCG highlighted efforts from Qatar, where travel businesses use SMS and WhatsApp marketing to reach travelers, as well as augmented and virtual reality to give travelers the opportunity to explore before they book.
Qiddiya, a planned city in Saudi Arabia, is also developing the Play Life Connected Experience, described as an “advanced digital platform” integrating AI, data analytics and cloud technology to facilitate “personalized and seamless visitor interactions.”
“The travelers of tomorrow look different—who they are, who they travel with (or without), what they expect and how they make decisions,” said Lara Koslow, a BCG managing director and senior partner and a coauthor of the report. “To stay relevant, travel companies will need to get ahead of these shifts—or risk being left off the itinerary.”
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