The annual report on the hospitality sector for 2025, conducted by Adyen, a fintech company, reveals significant changes in traveler behavior and their approach to planning and booking trips.
The report is based on a survey involving over 40,000 consumers across 27 countries, highlighting that 68% of travelers in the UAE are using artificial intelligence (AI) to book their trips domestically and internationally. This reflects a 57% increase compared to the previous year. The findings indicate that consumers expect hotels and hospitality companies to provide booking platforms that integrate product search features with seamless payment options.
Different age groups exhibit varying patterns in their reliance on AI for trip planning in the UAE. Gen Z (77%) and Millennials (74%) are the most frequent users of AI for arranging their journeys, with a growing adoption rate among Gen X, where 44% currently use AI, showing an annual growth of 60%. Additionally, Gen Z has seen a 58% increase in usage, while 18% of respondents from the Baby Boomer generation indicate that AI has simplified their trip planning process.
One major factor driving travelers towards AI is the accurate suggestions it offers. Many find social media overflowing with distracting and unhelpful content, with 81% noting that it often includes ads and posts that hinder their search for relevant information. Furthermore, 85% of participants stated that AI has helped them generate suitable travel ideas more quickly, making the planning process clearer, more focused, and less overwhelming.
Regarding the report, Phil Crawford, Global Head of Hospitality at Adyen, commented: “Travelers are increasingly turning to AI for finding suitable travel destinations and easy, enjoyable, personalized plans, especially during the summer holiday season.” He added, “Guests are relying on AI for trip planning, prompting hospitality providers to invest in this technology to meet rising demand.”
The research also highlighted how hospitality companies in the UAE are responding to these shifts in consumer behavior. More than half of hospitality providers (56%) believe that AI-powered search tools aiding guests in the booking decision process will significantly transform the industry in 2025 and beyond. Additionally, half of the participating companies (50%) indicated that personalizing services through AI would enhance the guest experience.
Payments play a crucial role in the journey, linking the AI-driven exploration phase with the overall guest experience from booking to departure. Crawford noted: “Hospitality companies are increasingly integrating AI functionalities into their platforms to offer guests a smoother payment experience.”