Travel, Tourism & Hospitality
Adyen reports 57pc increase in AI adoption among UAE travellers
Adyen, a leading financial technology platform, has revealed that 68 per cent of UAE travellers now use AI to book holidays, marking a 57 per cent increase from last year. This indicates a significant shift in how travellers plan and book their trips.
Adyen, a leading financial technology platform, has revealed that 68 per cent of UAE travellers now use AI to book holidays, marking a 57 per cent increase from last year. This indicates a significant shift in how travellers plan and book their trips, according to a global poll of 40,000 consumers across 27 countries in the Adyen 2025 Hospitality and Travel Report.
A key trend highlighted is the growing consumer demand for hospitality businesses to integrate product search and streamlined, frictionless payment solutions directly into their booking platforms.
Yet while travellers rapidly adopt these new technologies, the hospitality industry faces significant infrastructure challenges.
The report found that 67 per cent of hospitality businesses in the UAE struggle with fragmented payment systems, where disconnected online and on-site processes create operational bottlenecks and complicate financial reconciliation.
This gap between what consumers now expect and what businesses can currently deliver highlights a clear disconnect the industry needs to address.
GEN X AND GEN Z LEAD THE WAY IN AI TRAVEL PLANNING
The generational breakdown reveals distinct patterns in how UAE travellers are embracing AI.
Gen Z (77 per cent) and Millennials (74 per cent) remain the most frequent users of AI for vacation planning, but Gen X is quickly catching up, with 44 per cent now using AI and a 60 per cent year-on-year growth rate.
Gen Z usage also saw a strong 58 per cent increase. Even Boomers are getting on board – 18 per cent of those surveyed said AI helped them plan trips more easily.
One of the main reasons people are using AI for travel planning is that it gives quicker, more relevant suggestions.
Many find social media too cluttered to be helpful – 81 per cent of travellers say it’s filled with ads, sponsorships and influencer content.
In comparison, 85 per cent said AI helped them find travel ideas faster and made the planning process feel more focused and less overwhelming.
“AI technology has become incredibly important to guests looking for destination inspiration and quick, fun and personalised itineraries, especially as summer vacations arrive,” said Phil Crawford, Global Head of Hospitality at Adyen. “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 BUSINESSES RECOGNISE AI AS KEY TO FUTURE GROWTH
The research highlights how UAE hospitality businesses are responding to these shifting consumer behaviors.
Over half (56 per cent) of hospitality providers say AI search tools that help guests with booking decisions will reshape the industry in 2025 and beyond.
Another (50 per cent) believe AI-driven personalisation will transform and elevate how they deliver guest experiences.
Payments are the critical bridge between AI-powered discovery and the full guest experience - from booking a room to hotel check-out.
Crawford continued “Hospitality businesses are increasingly integrating AI functionality within their platforms to offer a more seamless payment experience for guests.”
FRAUD REMAINS A KEY CONCERN
Payment security continues to be a major issue, with 17 per cent of UAE travellers reporting they experienced fraud when booking flights or accommodation in the past 12 months.
Hotels are experiencing similar challenges – 42 per cent of UAE hospitality businesses saw a significant increase in payment fraud attempts over the past year.
One response to this challenge is the use of AI tools designed to detect and prevent fraud more accurately, such as Adyen’s Uplift platform which features Protect – an AI-powered fraud prevention module that cuts false positives by 86 per cent and helps ensure genuine transactions are processed without disruption. -TradeArabia News Service