# Why Generative AI Is a Game Changer for Leisure Travel

**Publisher:** Oliver Wyman  
**Published:** 2024-05-01  
**Category:** Consulting & advisory  
**Type:** Survey  
**Access:** Free  
**Official source:** https://www.oliverwyman.com/our-expertise/insights/2024/may/generative-ai-leisure-travel-planning-and-inspiration.html  
**Canonical:** https://tourismintel.ai/reports/why-generative-ai-is-a-game-changer-for-leisure-travel

## At a glance
- 41% of US and Canadian leisure travellers used generative AI for trip inspiration or itinerary planning in March 2024, up from 34% in August 2023.
- 59% of those under 45 adopted generative AI tools versus 31% of respondents aged 45 and older.
- 82% of recent generative AI users report likelihood of using the technology again for travel planning.
- If suppliers forgo generative AI investment, OTAs could gain $2 billion-plus in additional commissions by 2029.
- Elite loyalty members show 45% adoption of generative AI versus 28% for members without status designation.

## What the report covers
Oliver Wyman surveyed approximately 2,100 North American leisure travellers across two waves (August 2023 and March 2024) to measure adoption and intent around generative AI for vacation inspiration and itinerary planning. The report examines demographic adoption patterns, consumer satisfaction with AI recommendations, brand loyalty dynamics, and financial implications for travel suppliers and online travel agencies.

## Key findings
Generative AI adoption among North American leisure travellers accelerated sharply between August 2023 and March 2024. According to the survey, 41% of respondents had recently used generative AI for trip inspiration or itinerary planning, a 7-percentage-point increase from the prior survey. Future intention remains strong, with 82% of recent users and 58% of all respondents likely or very likely to use these tools again.

Demographic patterns reveal younger travellers and elite loyalty members as the most enthusiastic early adopters. The survey finds 59% of those under 45 have recently used generative AI compared with 31% aged 45 and older. Among loyalty programme members, 45% at upper-tier elite status used generative AI versus 28% without status. Cruise travellers also show higher engagement: 54% of those taking at least one cruise since 2022 used generative AI versus 35% of non-cruisers.

Generative AI addresses recognised consumer pain points in travel planning. The report identifies overwhelming information volume and navigation complexity as top challenges for 22% and 21% of non-adopters respectively. Users ranked generating travel ideas based on extensive search criteria and personal data (both 41%) as important capabilities. For itinerary planning, 46% deemed real-time pricing and booking availability crucial. More than 75% of recent users reported satisfaction with recommendations; over 90% booked at least some AI-generated suggestions.

Brand loyalty significantly influences consumer trust in generative AI tools. According to the survey, 43% of respondents would trust a generative AI tool from a brand offering a loyalty account with access to personal data, compared with 31% for tools from OTAs where they have no loyalty account. This trust differential creates commercial incentives for travel suppliers to develop proprietary tools that strengthen customer relationships and drive direct bookings.

## Key numbers
| Metric | Value | Note |
|---|---|---|
| Leisure travellers using generative AI for trip inspiration or itinerary planning | 41% | March 2024 survey, ~2,100 respondents from US and Canada; up from 34% in August 2023 |
| Generative AI users aged under 45 | 59% | March 2024 survey; observed among recent users |
| Generative AI users aged 45 and older | 31% | March 2024 survey; observed among recent users |
| Elite loyalty members using generative AI for travel planning | 45% | March 2024 survey; compared with 28% of non-status members |
| Cruise travellers using generative AI (at least one cruise since 2022) | 54% | March 2024 survey; compared with 35% of non-cruisers |
| Recent generative AI users likely to use again for travel planning | 82% | March 2024 survey; stated intent |
| Potential OTA commission gain if suppliers forgo generative AI investment | $2 billion-plus | Forecast to 2029; US online travel market scenario |
| Potential annual OTA commission savings for suppliers investing in generative AI | ~$800 million | Forecast to 2029 versus baseline; assumes booking share remains constant |

## Why it matters
**DMOs & destinations** — Generative AI tools shape where leisure travellers plan trips and seek inspiration. DMOs must consider partnerships with AI platforms or chatbot integrations to capture consumer interest at the planning stage. Early adoption positions destinations competitively as consumer planning behaviour shifts toward AI-assisted discovery and itinerary building.

**Hotels & hospitality** — Hotel brands face competitive pressure to develop proprietary generative AI tools for loyalty members, who show higher adoption and trust brand-owned solutions. Elite loyalty members are most likely to use AI for planning. Direct booking potential and ancillary revenue depend on rapid tool development or risk losing wallet share to OTAs and third-party platforms.

**Travel tech & distribution** — The report quantifies commission risk: $2 billion-plus opportunity for OTAs by 2029 if suppliers delay investment, or $800 million savings annually for suppliers acting quickly. Booking integration within generative AI interfaces represents a major distribution battleground. Speed of implementation determines whether direct bookings increase or shift toward OTA-mediated channels.

## Methodology and limits
Oliver Wyman conducted two online surveys via Dynata in August 2023 and March 2024, each with approximately 2,100 leisure travellers in the United States and Canada who booked roundtrip flights or lodging for leisure since January 2023, or cruises since January 2022. Exhibit 1 indicates a subset of August 2023 respondents was recontacted in March 2024. The report presents observed adoption rates and stated future intent. No information on survey margin of error or demographic weighting is disclosed in the publicly available source text.

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© Oliver Wyman for the original report. This brief is an original editorial summary by TourismIntel (https://tourismintel.ai). Read the original: https://www.oliverwyman.com/our-expertise/insights/2024/may/generative-ai-leisure-travel-planning-and-inspiration.html