Artificial intelligence has changed the way people plan their holidays, as it offers personalised itineraries and travel recommendations within seconds. But while AI-powered tools can simplify the process, a new Australian study suggests that trusting them could lead to costly mistakes and/or could even disrupted your vacation.
Traditionally, planning a holiday involved browsing multiple travel websites, comparing hotel prices, checking transport schedules and reading countless reviews. However, generative AI tools are increasingly allowing travellers to complete much of their research in a matter of seconds.
Whether it is a trip to God's own country, a personalised non-popular trip to Hampi or a international vacation, travellers can now enter their budget, preferred dates and interests into an AI chatbot and receive a customised itinerary instantly.
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The convenience is attracting a growing number of users, but researchers say AI's ability to make reliable recommendations is a crucial concern.
More Travellers Turning to AI for Holiday Planning
According to the survey, almost 29% of Australian adult travellers used generative AI to explore destinations, search for travel deals and prepare itineraries.
Australian government research also indicates that around 30% of GenZ travellers used AI-powered tools for travel-related decisions.
The trend comes amid increasing travel activity in Australia. During 2024–25, Australians undertook a record 12.3 million international trips, representing an 11.6% increase over the previous year. Domestic travel remained strong, with approximately 113 million trips recorded.
As AI becomes deeply integrated into travel searches and recommendations, researchers are examining whether travellers are prepared to let technology influence or even make important holiday decisions.
Photo Credit: Tourism Kerala
What Makes Travellers Trust AI?
A study involving 421 Australian travellers identified five key factors influencing people's willingness to rely on generative AI for holiday planning: reliability, accountability, trustworthiness, fairness and transparency.
Researchers explored how comfortable travellers were with different levels of AI involvement, ranging from creating suggested itineraries to making final recommendations and decisions.
The findings showed that reliability and accountability were particularly important in determining whether travellers would delegate planning responsibilities to AI.
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People were more comfortable relying on AI when they believed its recommendations were accurate, consistent and dependable. They were more willing to trust platforms if they felt the companies operating them could be held responsible for mistakes and address problems effectively.
However, confidence in AI does not necessarily guarantee that its recommendations are accurate.
Incorrect Visa Rules, Hotel Listings and Train Timings Pose Risks
Despite its advantages, generative AI can produce inaccurate or outdated travel information. Australia's official Smartraveller advisory service has warned that AI-generated travel advice may include incorrect visa requirements, outdated transport schedules and recommendations for hotels that have permanently closed.
Such errors could have serious implications for travellers, particularly when they are connected to immigration requirements, flight connections or accommodation bookings.
A traveller following an incorrect train timetable could miss a connection, while relying on inaccurate visa information could result in immigration being denied at an airport.
Researchers have therefore emphasised that as a backup travellers should independently verify critical travel details rather than treating AI-generated itineraries as confirmed information.
Photo Credit: PTI
The Surprising Problem With AI Transparency
One significant finding of the study is described as the "transparency paradox". Although transparency is generally considered essential for responsible artificial intelligence, the research found that greater perceived transparency was associated with a reduced willingness to delegate travel decisions to AI.
The finding challenges the common assumption that explaining more about an AI system automatically makes users more willing to accept and trust it.
Researchers suggested that the explanation lies in convenience. Many travellers turn to generative AI specifically to avoid the time-consuming process of comparing flights, looking for accommodation in the right budget and confirming destinations.
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When an AI platform provides a lengthy explanation about how it evaluates every recommendation, the experience can become complicated, undermining the simplicity that attracted users in the first place.
The findings do not suggest that AI companies should conceal information. Instead, researchers recommend presenting essential details upfront while allowing users to access additional explanations, evidence and sources when required.
This approach, known as progressive disclosure, could help maintain convenience without compromising transparency.
How AI Could Change the Tourism Industry
The growing influence of AI is not limited to individual travellers. Tourism Australia has identified AI-assisted travel discovery and booking as a strategic priority, recognising that travellers increasingly depend on AI platforms to research destinations, compare experiences and arrange holidays.
This shift could significantly change how hotels, tour operators and tourism destinations attract visitors.
Instead of relying exclusively on search engines, booking platforms and traditional travel agencies, consumers could encounter destinations through recommendations generated by AI assistants.
As a result, AI systems could become influential intermediaries between travellers and tourism businesses.
However, researchers suggest that the industry's growing dependence on these platforms will require greater attention to the accuracy of information, accountability for recommendations and the way AI systems communicate their limitations.
So, the question remains whether AI is better or worse for planning a Holiday?
The research suggests that generative AI can be an effective holiday-planning assistant, particularly for generating itineraries, exploring unfamiliar destinations and narrowing travel options, with its greatest advantage being speed.
However, the technology remains less dependable when travellers need verified, up-to-date information about visa policies, transport schedules, hotel availability and booking conditions.
Hence, travellers are advised to cross-check important information through official immigration websites, airlines, accommodation providers and transport operators. They should also understand what recourse is available if an AI-generated recommendation proves inaccurate.
The key takeaway is clear: AI can make holiday planning faster and easier, but it is best used as a travel assistant rather than a replacement for independent research and informed decision-making.
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