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Artificial intelligence (AI)
initiatives have come thick and fast in the travel industry over the course of 2025.

Consumer-facing solutions covering all parts of the traveler experience and B2B tools helping companies show-up on the AI platforms are all vying for attention.

In the background, travel
technology providers are scrabbling to create solutions to help travel brands drive
efficiency as well as be seen on AI platforms

With consumers getting more comfortable using the technology for trip planning, the pace of experimentation
is unlikely to let up. Phocuswright Research’s U.S. Consumer Travel report revealed
48% of millennials and 42% of Gen Z are more or much more comfortable with using
AI to help them plan trips compared to a year ago.

In its latest research, “How
AI is reshaping every step of the traveler journey,” Lufthansa Innovation Hub (LIH) has
laid out some of the most interesting use cases
announced so far across eight stages. The study looks at recent AI developments
across stages, including inspiration and planning, booking and purchase, in-flight experience
and in-destination activities.

Developments from online
giants, including Expedia with its AI-powered Trip Matching feature and
Booking.com using AI to gain a better view of traveler intent, often grab the
most headlines. 

The two companies are also among
the first partners named to have apps in the recently announced ChatGPT
initiative.

Beyond the U.S., online travel agencies (OTAs) such as MakeMyTrip and Trip.com Group have also unveiled their own initiatives. And many travel startups and smaller companies, including many in
PhocusWire’s Hot 25 Travel Startups for 2026 and some of the class of 2025,
also have skin in the game.

In the planning and inspiration
stage, LIH also calls out large and small players: AI trip planner Mindtrip, for
example, alongside Google, which announced earlier this year that it is using
Gemini to identify location place names from screenshots.

There is no shortage of developments
in the travel booking stage. LIH highlights a move from Indian airline Indigo,
which enables travelers to search, book and manage flights within a chat interface,
while Turkish Airlines has announced a Modern Context Protocol (MCP) server,
which enables AI platforms to access live airline data. Another worth mentioning is Kiwi’s development of an MCP server enabling AI assistants to trawl its
platform for flights.

For the airport experience, Lufthansa
highlights use cases for helping passengers during disruptions. United Airlines,
for example, provides personalized messages via text or email to passengers
during disruptions. There are also initiatives to get passengers through the
airport terminal more efficiently, such as AI-powered walk-through security scanners
at Frankfurt Airport.

Beyond consumer developments

While the Lufthansa study
looks at recent traveler-facing initiatives, there have also been many
announcements around B2B developments. Airlines are increasingly using AI for
route and aircraft optimization and to help them recover operations more
efficiently during disruptions.

United has also announced an
investment in and collaboration with voice and conversation AI specialist AiOla
with what it has described as “limitless applications.” Examples include safety
reporting and maintenance.

Further
recent examples of more behind the scenes developments include Apaleo’s launch
of an MCP server enabling AI agents to perform tasks across hotel operations, including
checking availability and modifying reservations.

More
recently, Boom unveiled its Business Agentic Manager for the short-term rental
industry. The agent makes decisions across functions such as marketing, guest
communications and financial reporting.

And,
Mirai has unveiled Sarai, enabling hotels to offer guests natural language
search and booking in text and voice in numerous spoken and written languages. The
initiative is part of a wider strategy to provide a “direct-sales ecosystem,”
according to the company.

It’s
too early to predict who might win the AI race in travel. Many executives are
concerned about the power the OTAs wield and the deals they have struck with AI
platforms. Others feel more confident that the companies who own the inventory, such as airlines and hotels, could have the upper hand.

What
is clearer is that the rapid pace of innovation will not subside; new models will emerge, and
everyone from supplier-direct to intermediaries and metasearch somewhere in
between will be disrupted.