Nearly a third of Aussies are now using artificial intelligence (AI) to help plan their holidays, according to new research from Compare the Market.
In a survey of over 1,000 Australian adults, three in ten (28.8%) respondents said they relied on AI tools to lock in travel deals, scout destinations and find activities.
More than one in ten (11.5%) are specifically using AI for destination recommendations – the most popular use of AI in travel – while a similar number (10.3%) are seeking out deals.
Meanwhile, nearly one in ten (9.4%) look for recreational activities and accommodation, while one in 11 (9%) use AI to create itineraries, and nearly the same number (8.2%) search for flights and transport. A small percentage (3.2%) use AI to understand currency conversion.
“Australians love a good holiday and have never been afraid to ask for help when planning the perfect getaway,” Compare the Market’s Chris Ford says.
“Our latest data highlights a shift in the way travellers are approaching their planning, with convenience, personalisation and speed driving the adoption of innovative AI tools.”
When it comes to who’s using the technology, the survey reveals a clear generational divide.
The study found that, unsurprisingly, Gen Z and Millennials are the most likely to engage with AI when planning a trip.
On the other hand, the vast majority (93%) of Baby Boomers and three-quarters (76%) of Gen Xers said they’ve never used AI tools to help book a holiday.
Interestingly, Gen Z and Gen X lean on AI for destination recommendations, Millennials for recreational activities, and Baby Boomers primarily for accommodation.
Advice, but not an advisor
While AI adoption isn’t surprising, Ford cautions that it should be treated as a tool, not a travel agent – and travellers should always sense-check recommendations.
“It’s likely that travellers are using these tools in addition to chatting with travel agents, conducting desktop research or seeking ideas and inspiration from social media,” he notes.
Despite being a “great starting point” in the overall journey, Ford says that it’s important to “always ensure you’re crossing your ‘t’s and dotting your ‘I’s” when using AI.
“Many of these tools and services are still in their infancy stage and may not be 100% accurate, so do your own research to ensure you’re equipped with the right tools and information for your trip,” he states.
“The last thing we want to see is anyone getting themselves into a potentially dangerous or unsafe situation based on the recommendations from AI.”
With this in mind, Ford also reminds travellers not to overlook insurance.
“Travel insurance is designed to protect you against unexpected events when you’re travelling domestically or internationally and AI may not be forthcoming with these types of incidents,” he says.
“The type of cover offered by insurers can vary, but consider policies that cover scenarios for the kind of holiday you’re booking.”
Where AI “falls short”
Karryon Features Editor Gaya Avery says while AI handles bookings, great travel agents go further — acting as trusted advisors, curators and problem-solvers.
“They don’t just book travel – they shape it, tailoring experiences to each client’s needs. That’s where artificial intelligence falls short,” she said.
“Travel professionals provide value: personalised service, insider knowledge and human connections that AI simply can’t replicate.”
So does high AI uptake mark the death of the travel agent? Get Gaya’s take on the technology from earlier this year here.
