Travel companies are grappling with a fundamental shift in how consumers discover and book travel experiences, as generative AI and large language models become increasingly influential in the decision-making process. At an industry roundtable, executives from major travel brands discussed whether AI will simply direct travelers to brand websites or whether discovery and actual booking transactions will occur entirely within AI conversations.
Data presented at the event revealed significant growth in AI-referral traffic, with a 119% increase reported in July 2026 and a 3,500% surge between May 2025 and May 2026. Initially, AI-referred visitors showed strong engagement but lower conversion rates compared to other traffic sources. However, that gap has substantially narrowed, with AI-referred traffic now converting at rates nearly equivalent to non-AI traffic.
To succeed in this environment, travel brands must create content that appeals to two distinct audiences simultaneously: human travelers who value emotional connection and personalization, and AI agents that require structured, reliable, and accurate information. Participants noted that AI agents function similarly to traditional human travel advisors, particularly for routine corporate travel where policies and preferred suppliers create clear parameters. However, complex leisure travel may still require human judgment, especially when disruptions occur or bookings fail.
Roundtable participants expressed concern that AI recommendation systems could homogenize travel experiences by favoring the most frequently mentioned and reviewed destinations, hotels, and attractions. Maintaining differentiation requires travel brands to publish richer contextual content and preserve customer preference data that reflects individual travel styles and values.
Travel companies retain a critical advantage through direct customer relationships built on years of real interactions. Direct bookings provide comprehensive data including identity, purchase history, loyalty status, and cross-supplier preferences that third-party platforms cannot access. Participants emphasized the importance of remaining discoverable across all booking channels while leveraging loyalty programs and personalized service to maintain competitive advantages that public AI platforms cannot replicate.
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