AI-powered travel gaining traction across generations
Holidaymakers have increased their use of AI-powered travel platforms by 61% compared to last year, with adoption now extending beyond digitally native demographics, says research by eDreams Odigeo. Olivia Palamountain reports
An eDreams Odigeo study of 9,000 global consumers (including 2,000 UK respondents) has found that use of AI-powered travel platforms grew by 61% compared to last year, with younger travellers aged 18-34 driving a 183% surge.
However, the research also revealed that 48% of consumers aged 55 and older used AI for travel for the first time in the past 12 months, indicating adoption extends beyond digitally native cohorts.
When asked how they would most like AI to assist with travel planning, UK travellers prioritised finding best-value flights at 40% overall and 55% among 25-34 year olds, identifying suitable accommodation at 29% overall and 46% among 25-34 year olds, and discovering new destinations at 28% overall and 45% among 25-34 year olds.
The travel subscription company's research identified lack of personalisation as the biggest frustration with traditional booking methods, cited by 44% of respondents overall and 52% of those aged 25-34. Wasting time filtering irrelevant options frustrated 37% of respondents, whilst 32% reported dissatisfaction with generic suggestions that don't match their needs.
Dana Dunne, chief executive of eDreams Odigeo, says: "This new research confirms the market has shifted: AI-powered travel is the new norm, and we are at the forefront of this transformation. We anticipated this evolution over a decade ago, building an AI-first business that is now uniquely positioned to meet the expectations of today's travellers, particularly the younger generations driving this trend. Our proprietary AI, making over six billion daily predictions, allows us to deliver the hyper-personalised and seamless experience that consumers are so clearly craving, and our technology will be there to support them wherever they go."
The findings coincide with UK government announcements of significant investments in AI skills development, reflecting broader efforts to embed artificial intelligence across sectors. The timing provides context for rapid consumer adoption of AI-powered services beyond travel booking.
eDreams Odigeo's proprietary technology processes over 100 million daily searches, generating six billion predictions to anticipate individual travel needs. The platform analyses 3.8 billion itineraries to deliver what the company terms "hyper-personalised travel" by filtering out irrelevant options and tailoring results to user preferences.
The research found that 56% of millennials cited travel planning as their primary use of technology for decision-making, exceeding coordinating group plans at 44% and choosing entertainment at 40%. Across all age groups, planning and booking trips topped the list of areas where consumers leverage technology for decisions, with 42% identifying it as most useful compared to entertainment choices at 31% or coordinating activities at 28%.
The data suggests generational differences in adoption rates, with younger consumers leading the trend but older demographics showing emerging interest. The 183% growth among 18-34 year olds significantly outpaces the overall 61% UK growth rate, indicating concentrated adoption within specific age segments.
The research indicates frustration with traditional booking methods stems partly from information overload, with consumers seeking automated filtering that reduces time investment whilst maintaining control over final decisions. This aligns with AI applications across e-commerce and entertainment where recommendation engines aim to surface relevant options from extensive catalogues.