The proliferation of Generative Artificial Intelligence (AI) has thrust the travel industry into a pivotal moment. The crucial debate isn't whether AI will replace human travel advisors, but rather how it will redefine the economics of their time. The consensus is clear: AI will commoditise simple bookings, forcing agents to specialise exclusively in high-margin, complex, and luxury itineraries to survive and thrive.
AI tools have fundamentally changed the pre-booking stage. Approximately 40 per cent of global travellers are already using AI for trip planning, with that figure soaring to 62 per cent among younger demographics (Millennials and Gen Z) in key markets. These consumers are turning to AI assistants to generate basic itineraries, research destinations, and find the best prices.
For the travel agent whose business model relies on booking a standard return flight or a generic four-night city break, AI is an existential threat. As Euromonitor notes, GenAI empowers connected trips and hyper-personalisation, handling the 'search and compare' function faster, cheaper, and 24/7. This shift allows Online Travel Agencies (OTAs) and technology platforms like Expedia and Booking.com to fully integrate into conversational interfaces, making the "converse and confirm" journey frictionless.
If AI is replacing the generalist, it is simultaneously empowering the specialist. The core takeaway from industry leaders like Virtuoso is that human connection and expertise are more valuable now than ever, particularly at the high end of the market.
Luxury travel remains incredibly robust, with Virtuoso reporting overall sales up 12 per cent in the first half of 2025. Furthermore, bookings exceeding $50,000 are up 35 per cent. This appetite for significant, complex spend is the sweet spot where AI fails and human value excels.
What AI cannot replicate is the emotional intelligence, accountability and complexity management required for high-margin travel.
A massive 75 per cent of Virtuoso clients cite safety and security as a leading concern, valuing the human advisor's extra layer of protection over perks and upgrades. AI cannot provide emotional reassurance when a flight is cancelled or be held accountable for a logistical error.
AI does not negotiate bespoke supplier terms, secure room upgrades or navigate multi-country visa and loyalty schemes. As the market sees a rise in ultra-luxury products (like the launch of The Luxurist for luxury advisors), the ability to access these exclusive supplier perks and relationships remains the human advisor's competitive edge.
AI generates a great itinerary, but it cannot organise a complex MICE group for 75 people across two continents, manage an intricate budget, or secure unique event spaces. The financial and logistical stakes in these segments demand human oversight and accountability.
Generative AI is not a replacement but a co-pilot. It should be used to automate the backend (summarising documents, checking flight times, generating first-draft itineraries) so the human advisor can dedicate their time to the front-end value - deep client insight, negotiating better financial terms and delivering the flawless execution that today’s discerning luxury consumer demands.