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Travel in 2025 has entered a new era—one powered by artificial intelligence. From trip inspiration and planning to bookings, in‑journey support and fraud prevention, AI is transforming every stage of the travel journey. A recent industry survey led by Adyen reveals sweeping changes in the UAE: faster bookings, seamless payments, more meaningful personalisation, and fresh challenges for hoteliers and tour operators.
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More travellers in the UAE than ever are turning to AI to design their perfect getaway. According to Adyen’s 2025 Hospitality and Travel Report, 68 per cent of UAE travellers now use AI when booking holidays, domestic and international, marking a 57 per cent increase versus last year. This trend also points to a demand for embedded product search and frictionless payment at the point of booking.
The report, based on feedback from 40,000 consumers across 27 countries, highlights AI’s ability to make discovery faster, smarter and less overwhelming.
- 85 per cent said AI helped them find travel ideas faster and feel less inundated.
- 81 per cent complained that social media is cluttered with ads, sponsorships and influencer content, making it hard to find trustworthy suggestions.
- 82 per cent use AI to cut through the noise.
- 85 per cent want personalised travel experiences in seconds.
- 81 per cent rely on AI when they face issues mid‑trip.
- 80 per cent trust the accuracy of AI‑provided information.
Especially among younger generations, AI travel tools are gaining traction. Gen Z leads the way at 77 per cent adoption, followed by Millennials at 74 per cent. Gen X is quickly catching up, 44 per cent now use AI, reflecting a sharp 60 per cent year‑on‑year growth, while Gen Z adoption rose 58 per cent. Even Boomers are warming to it, with 18 per cent reporting that AI made their trip planning easier.
Phil Crawford, Global Head of Hospitality at Adyen, explains:
“AI technology has become incredibly important to guests looking for destination inspiration and quick, fun and personalised itineraries, especially as summer vacations arrive. Guests are increasingly using AI to make their trips more seamless, and, in response, hospitality providers are looking to invest to meet this growing demand.”
Hospitality providers race to keep up
In response to shifting consumer expectations, many hospitality businesses are racing to adopt AI tools—but they face structural hurdles. The Adyen survey shows 67 per cent of UAE hospitality firms struggle with fragmented payment systems that create operational inefficiencies and make financial reconciliation difficult.
- Still, industry optimism is strong:
- 56 per cent believe AI‑powered search tools will redefine booking decisions in 2025 and beyond.
- 50 per cent expect AI‑driven personalisation to elevate guest experiences.
- 44 per cent see AI customer service as a future game‑changer.
- 39 per cent are already using AI chatbots or virtual assistants to support guests and make recommendations.
Crawford adds, “Payments are the critical bridge between AI‑powered discovery and the full guest experience—from booking a room to hotel check‑out. Hospitality businesses are increasingly integrating AI functionality within their platforms to offer a more seamless payment experience for guests.”
Payment security: A growing concern
As AI expands, security risks follow—and payment fraud is top of mind.
• 17 per cent of UAE travellers reported experiencing fraud when booking flights or accommodation in the past 12 months.
• 42 per cent of UAE hospitality businesses saw a significant rise in payment fraud attempts.
To combat this, many firms are adopting AI‑driven fraud detection tools. Adyen’s Uplift platform, which features Protect—an AI‑powered fraud prevention module—has slashed false‑positive rates by 86 per cent, enabling genuine transactions to process smoothly and securely.
Crawford notes that AI not only helps reduce fraud but also eliminates friction that bogs down genuine customers, making it a vital strategic investment for operators.
The broader impact: AI is redefining travel
- Guests win: They get destination inspiration, tailored itineraries, rapid help with problems, and smoother booking and payment—all thanks to AI.
- Businesses gain: Hotels, airlines, and tour agencies can boost conversion, personalise communications, reduce fraud, and stay competitive.
- Challenges remain: Infrastructure improvement and coherent payment setups are essential for the industry to deliver on AI’s promise.
The beauty of AI lies in its dual value proposition: inbound, it inspires travellers with fresh ideas and responds instantly to queries; outbound, it drives conversions, streamlines financial flows, and fights fraud. Savvy hospitality players are those who recognise this synergy—and invest in just the right tools.
What’s next for 2025 and beyond?
- More embedded AI at booking touchpoints: Expect to see product search and one‑click payments within chatbots and in‑platform tools.
- Increased fidelity of personalisation: AI systems will learn guest preferences and habits to tailor experiences dynamically.
- Smarter security models: AI‑based fraud prevention will evolve from reactive to proactive, nipping threats in the bud.
- Cross‑platform coherence: Streamlined payment systems will smooth out current disconnects between online and on‑site operations.
The UAE is at the vanguard of this transformation. As AI usage grows across all age groups, hospitality providers that invest judiciously will remain the go‑to brands for inspired travel, seamless itineraries and fortified security.
